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Pond Applied sciences Holdings Inc. (TSX.V: POND)(OTC: PNDHF)(FSE: 4OO), introduced that the unaudited interim condensed consolidated monetary statements of the Firm for the three months ended September 30, 2021, and the associated administration’s dialogue and evaluation have been filed and can be found for overview on the SEDAR web site at www.sedar.com or on the Firm’s web site at www.pondtech.com.
Q3 2021 Highlights and a quick enterprise replace comply with beneath:
Q3 2021 Highlights
- Business Validation of Pond’s Carbon and Biotech Expertise
Q3 2021 was a turning level for Pond because it signed important licensing and provide agreements to undertake and deploy its expertise. The primary was a expertise entry settlement signed with a North American Fortune 500 Firm to gather as much as $1 million in milestone funds to develop Covid-19 antigens. The second was with UK-based Livalta, an AB Agri Firm, a subsidiary of Related British Meals, for the world’s first scalable manufacturing of algae from carbon emissions aimed to revolutionize protein in animal feed. The availability and licensing agreements with Livalta are valued at over $5 million.
- Q3 Income Elevated by 70%
Group income for Q3 2021 totaled $2,163,000 (Q3 2020: $1,275,000), a rise of $888,000 (70%). The rise is primarily a results of licensing income acknowledged within the quarter. For the 9 months ended September 30, 2021, income elevated by 30% $4,364,000 (2020: $3,367,000). Administration anticipates because the Firm progresses its commercialization efforts, and the character of the contracts signed, income in its Carbon and Biotech divisions will considerably range quarter to quarter because the Firm works by way of its gross sales pipeline, and fulfills milestones associated to signed contracts.
Q3 2021 margin (income much less direct prices and bills) was $903,000 (42%) vs. $175,000 (13%) in Q3 2020. For the 9 months ended September 30, 2021, a margin of $1,335,000 (30%) vs. $648,000 (19%) was achieved. The development in margin is primarily attributable to licensing charges acknowledged in Q3.
- Quarterly Decreases in Working Loss in 2021
The Q3 2021 working lack of $557,000 was decrease than Q2 $733,000 and Q1 $1,003,000.
On October 27, 2021, Pond introduced its subsidiary, Pond Naturals Inc., has been licensed GMP compliant by an impartial third-party auditor, SCS International Companies (SCS), below the HACCP-based Good Manufacturing Practices (GMPs) Meals Security Program normal. The certification audit included inspection of the power and administration system in opposition to the location’s Meals Security Program primarily based on 21 CFR Half 111 (cGMPs for Dietary Dietary supplements).
On November 1, 2021, Pond introduced it has agreed to a non-exclusive collaboration association with mission supply agency Malone Group. A pioneering world association between Malone Group and Pond will present Pond with the added infrastructure to help the scaling-up course of by way of its ongoing commercialization efforts. Malone Group gives Pond entry to course of and security engineering experience in addition to a wealth of expertise in delivering initiatives in operational and controlled environments.
On November 15, 2021, Pond introduced it has issued an amended and restated promissory word within the principal quantity of CAD$1,988,500 (the “Promissory Observe”) to Georgian Villas Inc. (the “Lender”), an entity managed by the Chairman of Pond, Mr. Robert McLeese. The Promissory Observe replaces and supersedes the unique promissory word within the principal quantity of CAD$2,000,000 issued by Pond to the Lender on November 15, 2019. The brand new Promissory Observe has the next materials attributes:
- Discount of rate of interest from 12% to 9.55% every year, payable quarterly, with the primary curiosity fee due on February 15, 2022;
- Promissory Observe maturing on November 15, 2024;
- Is convertible by the Lender into frequent shares within the capital of the Firm (“Widespread Shares”) at a conversion worth equal to better of (i) $0.39 per Widespread Share and (ii) the typical closing worth of a Widespread Share for the 30 buying and selling days on the TSX Enterprise Trade (“TSXV”) instantly previous November 15, 2021; and
- Secured by a safety curiosity over all current and after-acquired endeavor, property and property of Pond (excluding its fairness curiosity in its subsidiary, Paige Progress Applied sciences Inc.) pursuant to an amended and restated safety settlement granted by Pond in favor of the Lender.
Grant Smith, President & CEO of Pond, stated “The third quarter was the inflection level for Pond, with file income progress, bettering margins, and a narrowing working loss. We’re within the early levels of proving the power of our mannequin. Highlighted by the numerous current validation of our expertise by two multi-billion-dollar worldwide corporations, we’re extraordinarily excited for what the long run holds. Furthermore, the restated and amended convertible word with Pond’s Chairman is a big step ahead for our monetary flexibility, and we look ahead to executing on our rising gross sales pipeline.”
On November 15, 2021, Pond granted an combination of 1,275,000, inventory choices (“the Choices”) to eligible executives, workers and consultants below the Firm’s present inventory choice plan. Every choice is exercisable for one frequent share of the Firm at an train worth of $0.40 per share. The closing worth of the frequent shares of the Firm on the TSX Enterprise Trade on November 12, 2021, was $0.40. The Choices have a time period of 5 years and vest as to one-third on the date of grant, one-third on the primary anniversary of the date of grant, and the stability on the second anniversary of the date of grant.
The previous submit was written and/or printed as a collaboration between Benzinga’s in-house sponsored content material workforce and a monetary associate of Benzinga. Though the piece isn’t and shouldn’t be construed as editorial content material, the sponsored content material workforce works to make sure that any and all info contained inside is true and correct to one of the best of their data and analysis. This content material is for informational functions solely and never meant to be investing recommendation.
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