Pond Technologies Provides Update on Business Activities and Opportunity Pipeline

MARKHAM, ON / ACCESSWIRE / January 20, 2022 / Pond Technologies Holdings Inc. ("Pond") (TSXV:POND)(OTCQB:PNDHF)(FSE:4OO), an ESG company addressing global sustainability challenges of protein shortages and climate change, is pleased to provide the following business update, including its opportunity pipeline and highlights surrounding the continued momentum being experienced across the organization.

Opportunity Pipeline

Pond currently has a record opportunity pipeline across its three divisions including quoted and contracted projects and purchase orders. Pond expects to convert a significant portion of it over the next twelve months. The opportunity pipeline does not include potential offtake contracts that would produce additional revenue over a project's life. Management believes this will position Pond for significantly improved performance in 2022 and beyond.

Pond's early commercialization efforts across numerous sectors, including animal feed, human feed, and nutraceuticals, have gained significant traction since mid-2021, and momentum continues into 2022. Management believes the ability for companies to utilize its technology for an economically viable carbon capture solution, alternative protein development, including feed for humans and animals, will be a future driver for the business. Therefore, Pond is refining its business development approach to capitalize on its additional strengths.

Recent Business Highlights

• On September 8, 2021, Livalta (a division of AB Agri) and Pond agreed to an exclusive global partnership to grow algae-based animal feed from CO2 emissions. This agreement provides for the world's first scalable algae plant utilizing carbon emissions to produce protein used in animal feed. The engagement consists of two parts: a supply agreement, where AB Agri will purchase an algae demonstration system from Pond to be installed in the UK for the sum of approximately CAD$2.9 million and a license agreement, where Pond will receive up to CAD$2.6 million in technology access fees and an ongoing royalty based on the production from commercial algae plants deployed in the future.
  • The demonstration system will be used to grow algae strains for animal feed trials and the development of commercial animal feeds, which will be sold by AB Agri.
  • Livalta's pilot plant is anticipated to open at British Sugar's Wissington site in Norfolk in 2022. The project is now in the engineering phase and expects to begin construction in Q2 2022.
• On August 10, 2021, Pond announced the execution of a scale-up and technology access agreement with a major Canadian oilsands producer and fortune 500 company to grow covid-19 antigens that are expressed from a unique strain of algae. These antigens will be used for rapid diagnostic testing. As part of this agreement, Pond will collect up to CAD$1 million in milestone payments and success fees: $150,000 was received on signing and the balance on achieving production volume and quality milestones. Currently, Pond has refined the growth and scale-up protocols for commercial production and expects to receive additional milestone payments in Q2 2022.
• On November 1, 2021, Pond and Malone Group agreed to collaborate on a non-exclusive basis in pursuing projects internationally. Malone Group will promote and recommend Pond to potential ESG clients on a non-exclusive basis. Malone Group provides Pond access to process and safety engineering expertise and a wealth of experience in delivering projects in operational and regulated environments.
• On October 27, 2021, Pond Naturals was certified GMP compliant by an independent third-party auditor, SCS Global Services (SCS), under the HACCP-based Good Manufacturing Practices (GMPs) Food Safety Program standard. The certification audit included inspection of Pond's Agassiz facility and management system against the site's Food Safety Program based on 21 CFR Part 111 (cGMPs for Dietary Supplements).

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