Pond Technologies Announces Amended and Restated Secured Convertible Note

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Pond Technologies Holdings Inc. PONDPNDHF, an ESG company addressing global sustainability challenges of protein shortages and climate change, announces it has issued an amended and restated promissory note in the principal amount of CAD$1,988,500 to Georgian Villas Inc. 

The Promissory Note replaces and supersedes the original promissory note in the principal amount of $2,000,000 CAD issued by Pond to the Lender on Nov. 15, 2019. The new Promissory Note has the following material attributes:

• Reduction of interest rate from 12% to 9.55% per year, payable quarterly, with the first interest payment due on Feb. 15, 2022
• Promissory note maturing on Nov. 15, 2024
• Is convertible by the lender into common shares in the capital of the corporation at a conversion price equal to greater of $0.39 per common share and the average closing price of a common share for the 30 trading days on the TSX Venture Exchange immediately preceding Nov. 15, 2021
• Secured by a security interest over all present and after-acquired undertaking, property and assets of Pond (excluding its equity interest in its subsidiary, Paige Growth Technologies Inc.) pursuant to an amended and restated security agreement granted by Pond in favor of the lender.

Robert McLeese currently beneficially owns or controls, indirectly, 5,851,145 (12.34%) of the issued and outstanding common shares of Pond.

Implications Going Forward

Located in Markham, Ontario, Pond is a technology leader in the controlled environment cultivation of microalgae. In over 10 years of R&D, Pond has developed a robust disruptive technology platform based on artificial intelligence, proprietary LED lights and patented carbon dioxide management. Pond uses CO2 to grow various forms of algae in just a few days, ready for processing and eventual transformation into marketable products. 

Pond is currently selling micro-algae-derived antioxidant astaxanthin under its Regenurex brand. As microalgae are becoming increasingly important in pharmaceuticals, cosmetics, nutrition, and other industries, 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 antibodies and proteins.

Algae is slowly making its way into the mainstream through several verticals. ExxonMobil Corp. XOM is conducting research on algae-based biofuels, Corbion CRBN is already a market leader in algae-based feed ingredients and L’Oréal S.A. LRLCY has infused algae into an established cosmetics line. 

Pond’s amended and restated convertible note puts it in a far more comfortable position to cater towards these many verticals. Grant Smith, president and CEO at Pond, put in the following comments about the change: 

“The term and lowering of the interest rate further stabilize Pond's debt servicing expenses in the midst of our ongoing momentum within the business. We continue to see our sales pipeline grow as international organizations across a myriad of different industries continue to be impressed with our vertically integrated model, and we look forward to progressing on our commercialization efforts."

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.