MARKHAM, ON / ACCESSWIRE / January 20, 2022 / Pond Technologies Holdings Inc. (“Pond”) (TSXV:POND)(OTCQB:PNDHF)(FSE:4OO), an ESG company addressing global sustainability challenges of protein shortages and climate change, is pleased to provide the following business update, including its opportunity pipeline and highlights surrounding the continued momentum being experienced across the organization.
Opportunity Pipeline
Pond currently has a record opportunity pipeline across its three divisions including quoted and contracted projects and purchase orders. Pond expects to convert a significant portion of it over the next twelve months. The opportunity pipeline does not include potential offtake contracts that would produce additional revenue over a project’s life. Management believes this will position Pond for significantly improved performance in 2022 and beyond.
Pond’s early commercialization efforts across numerous sectors, including animal feed, human feed, and nutraceuticals, have gained significant traction since mid-2021, and momentum continues into 2022. Management believes the ability for companies to utilize its technology for an economically viable carbon capture solution, alternative protein development, including feed for humans and animals, will be a future driver for the business. Therefore, Pond is refining its business development approach to capitalize on its additional strengths.
Recent Business Highlights
- On September 8, 2021, Livalta (a division of AB Agri) and Pond agreed to an exclusive global partnership to grow algae-based animal feed from CO2 emissions. This agreement provides for the world’s first scalable algae plant utilizing carbon emissions to produce protein used in animal feed. The engagement consists of two parts: a supply agreement, where AB Agri will purchase an algae demonstration system from Pond to be installed in the UK for the sum of approximately CAD$2.9 million and a license agreement, where Pond will receive up to CAD$2.6 million in technology access fees and an ongoing royalty based on the production from commercial algae plants deployed in the future.
- The demonstration system will be used to grow algae strains for animal feed trials and the development of commercial animal feeds, which will be sold by AB Agri.
- Livalta’s pilot plant is anticipated to open at British Sugar’s Wissington site in Norfolk in 2022. The project is now in the engineering phase and expects to begin construction in Q2 2022.
- On August 10, 2021, Pond announced the execution of a scale-up and technology access agreement with a major Canadian oilsands producer and fortune 500 company to grow covid-19 antigens that are expressed from a unique strain of algae. These antigens will be used for rapid diagnostic testing. As part of this agreement, Pond will collect up to CAD$1 million in milestone payments and success fees: $150,000 was received on signing and the balance on achieving production volume and quality milestones. Currently, Pond has refined the growth and scale-up protocols for commercial production and expects to receive additional milestone payments in Q2 2022.
- On November 1, 2021, Pond and Malone Group agreed to collaborate on a non-exclusive basis in pursuing projects internationally. Malone Group will promote and recommend Pond to potential ESG clients on a non-exclusive basis. Malone Group provides Pond access to process and safety engineering expertise and a wealth of experience in delivering projects in operational and regulated environments.
- On October 27, 2021, Pond Naturals was certified GMP compliant by an independent third-party auditor, SCS Global Services (SCS), under the HACCP-based Good Manufacturing Practices (GMPs) Food Safety Program standard. The certification audit included inspection of Pond’s Agassiz facility and management system against the site’s Food Safety Program based on 21 CFR Part 111 (cGMPs for Dietary Supplements).
Leadership Addition
Dan O’Connor joins as Pond’s VP of Business Development. Dan brings a broad depth of experience and knowledge in the integrated control systems and biofuels industries. As an entrepreneur in both industries, Dan has an extensive understanding of bringing new and emerging industries to scale and commercialization. With experience in all aspects of project development and business development as well as having successfully raised capital specifically for project development. More recently, Dan has been involved in the Cannabis area, where he was involved as a consultant in business development and ultimately in negotiations involving the sale of the company to a more prominent industry player.
Dan graduated from the University of Guelph with an Honours B.Sc. degree in Human Biology and Business Administration.
Management Commentary
VP Business Development, Dan O’Connor, said: “I’m very excited to be joining Pond at this pivotal point in the development of the company, as it embarks on the road to commercialization. Having spent my entire career developing businesses in emerging industries such as technology, renewable energy, and cannabis, I look forward to bringing my skillset to the Pond team as we move this company forward. With the accelerated movement of corporations to solidify their ESG policies, Pond is primed and ready to capture a large part of that business with its established, patented cutting edge CCU technology.”
Peter Howard, VP Project Development, said: “Our projects in the biotech and animal feed sectors are proceeding as planned, and we continue to prove our technology can help solve some of the world’s toughest challenges. As we move through project milestones and earn additional licensing revenues, we will add further projects based on different applications of the same core technology. It’s incredibly exciting to see this process gathering momentum.”
President & CEO at Pond, Grant Smith, said: “Pond has built robust, scalable growth technology with 26 active patents globally and is leveraging these through ongoing discussions internationally. We are in the early stages of commercialization and see an enormous number of opportunities to leverage the vertically integrated platform we have developed, which will allow us to build a solid and diversified revenue base. Currently, we are in advanced licensing discussions with multinational companies in the animal feed, food production, nutraceuticals, mining, and oil and gas sectors, with expected deal announcements to be made throughout the year.”
About Pond Technologies
Located in Markham, Ontario, Pond is a technology leader in controlled environment cultivation of micro-algae. In over ten years of R&D, Pond has developed a robust disruptive technology platform based on artificial intelligence, proprietary LED-lights and patented CO2-management. The use of concentrated CO2 from industrial waste streams enables Pond to boost productivity of micro-algae well beyond the capacity of outdoor algae growers and allows industrial emitters to abate and ultimately recycle CO2.
Pond is currently selling micro-algae derived antioxidant astaxanthin under its Regenurex brand. As micro-algae are becoming increasingly important in pharmaceuticals and cosmetics, nutraceuticals, human nutrition, aqua farming, bioplastics and biofuels, Pond has begun to license its technology to third parties for ongoing license fees and royalties. Pond recently added a Biotech division focused on the growth of unique strains of micro-algae to be used as a reproductive medium for the expression of human anti-bodies and proteins.
Forward Looking Statements
This press release contains forward‐looking statements within the meaning of applicable securities laws, including statements regarding anticipated opportunity pipeline revenue and timing to receive same, the potential of offtake contracts, anticipated company performance in 2022 and beyond, installation of the Livalta algae demonstration system and construction and timing of the pilot plant and Pond’s anticipated receipt of the related purchase price, technology access fees and royalty, anticipated milestone payments and timing thereof under the scale-up and technology access agreement, and anticipated benefits of the Malone Group collaboration. Such forward‐looking statements are based on certain key expectations and assumptions made by Pond, including, among others, assumptions regarding successful operation of the algae demonstration system, sale of algae produced on favourable terms, construction of the pilot plant on time and within budget, compliance by third parties of their contractual obligations with Pond, Pond’s ability to meet contract milestones, the continued legislative (including tax) regime in which Pond operates, availability of cost‐effective labour and supplies, the proper functioning of Pond’s technology, the quality of the algae produced, the demand for Pond’s technology, the ability of Pond to successfully compete, cash flow and expenses, and obtaining and maintaining intellectual property protection. Although Pond believes that the expectations and assumptions on which such forward‐looking statements are based are reasonable, undue reliance should not be placed thereon and Pond can give no assurance that they will prove to be correct. By its nature, such forward‐looking statements are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed, including the risks set forth in Pond’s management’s discussion and analysis of financial condition and results of operations for its year ended December 30, 2020 and for the period ended September 30, 2021, available on Pond’s profile on SEDAR at www.sedar.com.
Readers are cautioned not to place undue reliance on this forward‐looking information, which is given as of the date hereof, and to not use such forward‐looking information for anything other than its intended purpose. Pond does not undertake any obligation to update publicly or revise any forward‐looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For further information: Grant Smith, Chief Executive Officer, at g.smith@pondtech.com, 416-287-3835 ext. 201; or Cole Stevens at c.stevens@pondtech.com.