Pond Technologies Holdings Inc. Announces Filing of 2021 Second Quarter Unaudited Interim Condensed Financial Statements, MD&A and Provides Business Update
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MARKHAM, ON, Aug. 26, 2021 /CNW/ - Pond Technologies Holdings Inc. (the "Corporation" or "Pond") (TSXV: POND); (OTCQB: PNDHF); (FSE: 4Oo), announces that the unaudited interim condensed consolidated financial statements of the Corporation for the three and six months ended June 30, 2021 and the related management's discussion and analysis have been filed and are available for review on the SEDAR website at www.sedar.com or on the Corporation's website at www.pondtech.com. Q2 Highlights and a brief business update follow below:
Q2 2021 Highlights
Group operating and working capital highlights:
- Decrease in Net Comprehensive Loss – The Q2 net loss of $697,000 (2020: $775,000) was $78,000 lower as compared to Q2 2020 and $346,000 lower as compared to Q1 2021.
- Pond Naturals/Nutraceutical Revenue – Pond Naturals revenue for the three months ended June 30, 2021 was $682,000 (2020: $950,000) or lower by $268,000. For the six months ended June 30, 2021, however, year-to-date revenues of $2,169,000 (2020: $1,894,000) increased by $275,000 (14.5%). The year-to-date revenue increase is a result of increases in both the sale of ingredients and astaxanthin products.
- Pond Technologies – Pond has been engaged through our licensee, Remediiate, to complete preliminary engineering work for the installation of a commercial facility in the UK with SIMEC Atlantis, hosted by the 220 MW Uskmouth power station.
- Divestiture of Discontinued Operations – Pond completed a transaction with Grizzly Resources Ltd. effective June 1, 2021 to sell all of its interest in the Pembina oil and gas property. As part of the divestiture, Grizzly assumed all abandonment and reclamation liabilities and will pay up to $2.25 million in future conditional consideration to Pond upon the sale of the assets and/or upon the resumption of production.
Business Update:
In June 2021, Pond announced that it had received a purchase order for an initial engineering study from CSV Midstream Solutions Corp ("CSV"). With 3 operating plants in Alberta, CSV is a Calgary-based, midstream natural gas and liquids infrastructure company with a mission to create a sustainable footprint in the Western Canadian natural gas industry. The initial engineering study was for the design and construction of an algae plant utilizing CO2 from an on-site natural gas plant. The initial engineering study follows an executed LOI for Pond to support the design, procurement and construction of an algae plant utilizing emissions from one of CSV's natural gas facilities near Grande Prairie, Alberta. Upon completion of the engineering study and a positive Final Investment Decision by CSV, the first stage of development would be an algae plant that would enhance Pond's supply of astaxanthin. Pond would provide engineering services, proprietary equipment and operational support to the project. Both Pond and CSV anticipate further scale-up opportunities to absorb more carbon emissions upon successful completion of the first stage.
In a subsequent event to the second quarter, Pond's ability to grow unique algae strains for the expression of complex proteins used in diagnostics and therapeutic treatments was acknowledged as Pond announced on August 10, 2021 a commercial agreement with a major Canadian oilsands producer and Fortune 500 company to grow algae for the expression of COVID-19 antigens for use in rapid diagnostics testing. As part of this agreement, Pond will collect up to CAD $1 Million in milestone payments and success fees over an anticipated period of the next 8 months.
Grant Smith, President and CEO of Pond, said: "The recent validation of our technology by one of Canada's largest companies represents the culmination of our efforts over the past twelve months and serves to advance our discussions with other multinationals. As for Pond Naturals, we anticipate seeing improvement over the remainder of the year based on current order flow and the gradual remediation of pandemic related supply chain disruptions."
About Pond Technologies Holdings Inc.:
Located in Markham, Ontario, Pond is a technology company that provides profitable solutions to the global health and wellness challenges of climate change and nutrition. Pond's proprietary growth platform, including patented advanced photonics, optimizes key growth inputs in order to provide a controlled environment that maximizes the growth of algae and other organisms. This enables industrial emitters to generate new revenue streams from the transformation of underutilized CO2 to valuable algae-based products, such as protein for animal feed and nutraceutical products like Chlorella, Spirulina, and Astaxanthin for human consumption. For more information visit https://www.pondtech.com/.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding Pond's relationship with CSV and the associated final investment decision, algae plant construction and services to be provided; the satisfaction of milestones associated with the growing of algae for the expression of COVID-19 antigens for use in rapid diagnostics testing and the anticipated revenue associated therewith; and future conditional consideration in respect of the sale of the Pembina oil and gas assets. Such forward-looking statements are based on certain key expectations and assumptions made by Pond, including, among others, assumptions regarding the continued legislative (including tax) regime in which Pond operates, the a positive final investment decision by CSV, Pond's ability to achieve the milestones in respect of the above-referenced antigens, 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 June 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.
SOURCE Pond Technologies Holdings Inc.
Grant Smith, Chief Executive Officer, at [email protected], 416-287-3835 ext. 201; or Cole Stevens at [email protected]
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