Pond Technologies Announces Amended and Restated Secured Convertible Note

Rhea-AI Summary

Pond Technologies Holdings Inc. (OTCQB:PNDHF) has amended a promissory note with Georgian Villas Inc., reducing the principal amount to CAD$1,988,500 and the interest rate from 12% to 9.55%. This note matures on November 15, 2024, and is secured by Pond's assets, excluding its equity in Paige Growth Technologies. Pond's CEO noted the amendment will stabilize debt servicing and support ongoing business momentum, as their sales pipeline continues to grow. The company focuses on the cultivation of micro-algae and has been licensing its technology for diverse applications.

Positive

• Reduction of the interest rate from 12% to 9.55%, improving cash flow.
• Amended note provides financial flexibility with a maturity date extending to November 15, 2024.
• Increasing sales pipeline and ongoing momentum in business development.

Negative

• None.

Lowering of Interest Rate and 2024 Maturity Provide Additional Financial Flexibility

MARKHAM, ON / ACCESSWIRE / November 15, 2021 / Pond Technologies Holdings Inc. ("Pond") (TSXV:POND)(OTCQB:PNDHF)(FSE:4OO), 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 (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 ("Common Shares") 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 ("TSXV") 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 favour 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.

Commentary

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."

About Pond Technologies

Located in Markham, Ontario, Pond is a technology leader in controlled environment cultivation of micro-algae. In over ten years of R&D, Pond has developed a robust disruptive technology platform based on artificial intelligence, proprietary LED-lights and patented CO2-management. The use of concentrated CO2 from industrial waste streams enables Pond to boost productivity of micro-algae well beyond the capacity of outdoor algae growers and allows industrial emitters to abate and ultimately recycle CO2.

Pond is currently selling micro-algae derived antioxidant astaxanthin under its Regenurex brand. As micro-algae are becoming increasingly important in pharmaceuticals and cosmetics, nutraceuticals, human nutrition, aqua farming, bioplastics and biofuels, 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 anti-bodies and proteins.

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.

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.

SOURCE: Pond Technologies Holdings Inc.

View source version on accesswire.com:
https://www.accesswire.com/672721/Pond-Technologies-Announces-Amended-and-Restated-Secured-Convertible-Note

FAQ

What is the significance of Pond Technologies' recent promissory note amendment on PNDHF stock?

The amendment stabilizes debt servicing costs and provides financial flexibility, which may positively impact investor sentiment.

How does the reduced interest rate affect Pond Technologies?

The reduced interest rate from 12% to 9.55% lowers future debt servicing costs, enhancing cash flow.

What is the maturity date for the new promissory note issued by Pond Technologies?

The new promissory note matures on November 15, 2024.

Who controls the lender of the amended promissory note for Pond Technologies?

The lender, Georgian Villas Inc., is controlled by Pond's Chairman, Mr. Robert McLeese.

What business developments has Pond Technologies reported recently?

Pond Technologies has noted a growing sales pipeline and is advancing commercialization efforts for its micro-algae technology.