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MARKHAM, ON, May 31, 2021 /CNW/ – Pond Technologies Holdings Inc. (the “Corporation” or “Pond“) (TSXV: POND) an ESG company addressing global sustainability challenges of climate change and nutrition, is pleased to announce that the unaudited interim condensed consolidated financial statements of the Corporation for the three months ended March 31, 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.
Q1 2021 Highlights
- 58% Increase in Pond Naturals Revenue – Pond Naturals revenue for the three months ended March 31, 2021 was $1,487,000 (2020: $943,000). The $544,000 (58%) increase is a result of increases in revenue in both the sale of ingredients and Regenurex astaxanthin products.
- Successful Production of Recombinant Proteins – Pond completed a research contract which successfully produced recombinant proteins using Pond’s growth platform. Pond plans to begin commercial production of recombinant proteins for diagnostic applications, following final testing of a new bioreactor design.
- Positive Working Capital of $532,000 – Pond’s working capital balance improved from an opening deficiency of $5,093,000 at December 31, 2020 to a positive working capital balance of $532,000 during Q1. The Q1 $5,625,000 improvement is primarily a result of the $3,500,000 cash raised from the issuance of 10,000,000 units, $746,000 from the exercise of 2,927,600 warrants and amendments to the Crystal Wealth term loan which included an extension of the term of the loan to June 30, 2023.
- Decrease in Net Loss – The Q1 net loss of $1,042,000 (2020: $1,073,000) was $31,000 lower as compared to 2020. If stock-based compensation is excluded, the net loss was lower by $257,000 ($758,000 vs $1,015,000 in 2020).
“We are extremely pleased with the progress being made across the organization as we prepare ourselves for sustained growth through 2021,” commented CEO, Grant Smith. “Pond Naturals continues to experience strong tailwinds driving sales growth, with consumers searching for natural astaxanthin in their daily lives. With our recent white label order, and upcoming launch of our new powdered Astaxanthin, Pond Naturals is in excellent position to continue the growth trajectory. As for Pond Biotech, we are excited with the execution on a research contract, in which we successfully produced recombinant proteins using Pond’s growth platform. We expect the success on this contract to lead to larger commercial agreements in the near future. At Pond Tech, we continue to have meaningful negotiations with multinational companies, and hope to announce new disruptive partnerships in the food and feed sector, where algae from Pond’s technology is an ingredient with significant advantages over incumbents. Lastly, I would like to thank the entire team for the continued efforts to make Pond a leader in global sustainability.”
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 anticipated growth and related revenue generation, operating efficiency, development of strategic business relationships, the filing of patents, potential sale and licensing arrangements, and anticipated development of technological advances. 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 successful negotiation of binding agreements to give effect to partnership and licensing arrangements currently under negotiation, 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 against its competitors, 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 31, 2020, 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.
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