A few days after signing a groundbreaking agreement with a Fortune 500 company for the production of complex proteins based on the Pond algae platform, Pond Technologies Holdings Inc. (TSXV: POND; FRA: 400) has secured an additional CAD 1.5 million in fresh capital through a private placement to secure its growth. The company issued 3,333,333 share units of Pond at a purchase price of CAD 0.45 per unit. The company classifies the placement as strategic, but did not disclose the identity of the investors. Of note, however, is that no fees or commissions were paid in connection with this private placement
Each unit consists of one (1) common share in the capital of Pond (“Common Shares”) and one-half (1/2) warrant to purchase one common share of Pond (“Warrants”), each Warrant entitling the holder to purchase one-half (1/2) common share at a purchase price of $0.60 and expiring on the earlier of: (i) 30 days after the date on which Pond notifies the holders of the Warrants after the Common Shares have traded on the TSX Venture Exchange (the “TSXV”) for 20 consecutive trading days at a closing price in excess of C$1.35 per Common Share, or (ii) two years after the date on which the Warrant was issued. The common shares and warrants comprising the Units are subject to a statutory hold period expiring no later than December 18, 2021. Following the completion of the Placement, there will be 46,608,851 common shares issued and outstanding.
Grant Smith, President & CEO of Pond Technologies, said, “As we continue to pursue our growth objectives, this strategic non-brokered private placement will provide additional balance sheet flexibility. Following the signing of a groundbreaking agreement for the production of complex proteins for rapid diagnostic testing with a North American Fortune 500 company, we see very bright prospects for the future. The validation of our technology by one of Canada’s largest companies has further spurred discussions with other multinationals.”
Summary: The Fortune 500 partner validates Pond’s technology in a big way. The biotechnological use of microalgae as a vessel to produce any protein has tremendous potential. Using microalgae to generate medical therapeutics is likely to have significant technical advantages over current production methods that use genetically engineered yeasts, bacteria, or mammalian cell lines. Algae can be genetically engineered as easily as these other organisms, but they offer two important advantages: Microalgae are more tolerant and can produce many more of the desired molecules. They are much easier to grow on a large scale. In addition, microalgae produce a much better product. E. coli and yeasts are less evolved organisms compared to algae and therefore cannot reliably produce complex human proteins. Pond is at the beginning of an exciting development after ten years of development. The biotechnological use of microalgae could be the “missing link” in the step ladder that will help an algae-based bioeconomy achieve a breakthrough. The motto of Pond’s new corporate presentation is “Driving the future of an algae-based bioeconomy.” We’re staying tuned.
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