Pond Technologies Issues New Promissory Note to Georgian Villas; Reduces Interest Rate and Aims to Further Stabilize Debt Servicing Expenses

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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. PONDPNDHF4OO announced that it has issued an amended and restated promissory note in the principal amount of CAD$1,988,500 (the "Promissory Note") to Georgian Villas Inc. (the "Lender"), an entity controlled by the Chairman of Pond, Mr. Robert McLeese. The Promissory Note replaces and supersedes the original promissory note in the principal amount of CAD$2,000,000 issued by Pond to the Lender on November 15, 2019. The new Promissory Note has the following material attributes:

• Reduction of interest rate from 12% to 9.55% per annum, payable quarterly, with the first interest payment due on February 15, 2022;
• Promissory Note maturing on November 15, 2024;
• Is convertible by the Lender into common shares in the capital of the Corporation at a conversion price equal to greater of (i) $0.39 per Common Share and (ii) the average closing price of a Common Share for the 30 trading days on the TSX Venture Exchange immediately preceding November 15, 2021; and
• 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.

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

President and CEO at Pond, Grant Smith, said: "We are extremely pleased to announce this amended and restated convertible note held by our supportive Chairman of the Board. 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.