Supply and Licensing Agreement with Livalta Valued at over $5 Million
MARKHAM, ON / ACCESSWIRE / September 8, 2021 / Pond Technologies Holdings Inc. ("Pond") (TSX.V:POND); (OTCQB:PNDHF); (FSE:4O0), an ESG company addressing global sustainability challenges of protein shortages and climate change, announces it has been engaged by Livalta, an AB Agri company, a subsidiary of Associated British Foods (LSE:ABF) for the joint commercialization of algae-based animal feed ingredients.
- In an agreement dated September 7, 2021, Livalta and Pond have agreed to an exclusive global partnership to grow algae-based animal feed from CO2 emissions
- 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 currently anticipated to open at British Sugar's Wissington site in Norfolk in 2022
A pioneering global partnership between responsible protein specialists Livalta and Pond will produce commercial algae-based animal feed ingredients from CO2 emissions. Effectively, the technology is designed to take CO2 emissions out of the air to produce high value protein.
The first product will be spirulina, combining 60% protein with essential vitamins and minerals. Spirulina is known for its nutritional and functional value both in food and animal feed.
Spirulina (and other algae) are gaining increasing attention as a potentially game-changing animal feed ingredient. Until now, the technology to produce algae, at the scale, quality and cost required to be an affordable ingredient for animal feed, has remained elusive. This exclusive partnership, which brings together Pond's ground-breaking technology with Livalta's expertise in new proteins for animal feeds, is set to change that.
Plans are now in place to open Livalta's first pilot plant to be followed by a commercial size plant producing spirulina from CO2 emissions at British Sugar's Wissington site in Norfolk in 2022.
AB Agri Chief Executive José Nobre, said: "As AB Agri we are committed to pioneering new and bold technologies to provide safe, high-quality nutrition, whilst minimising our environmental footprint. That is why we created Livalta as a specialist division to address the global protein challenge."
Managing Director of Livalta, Valerie Schuster, said: "We believe that science and technology are key to turning the protein challenge into an opportunity. We are very excited about this partnership with Pond and the potential that lies in their technology to produce algae using CO2 emissions. We look forward to working together to make positive change happen."
President & CEO at Pond, Grant Smith, said: "This landmark commercial partnership with AB Agri gives Pond global access to the animal feed market which Knowledge Sourcing Intelligence estimated was US $345 Billion in 2020 growing to US $460 Billion by 2026. The further validation of our model provides us with significant momentum in expanding our sales funnel. We will be working with our regional development partner, Remedi!ate UK, to build the commercial pilot in the new year. Together with AB Agri and their new responsible proteins division, Livalta, we are working to develop algae as a cost-effective responsible feed ingredient, transforming climate change emissions into commercial animal feed ingredients. AB Agri and Pond joining forces to tackle producing affordable, high quality and responsible food is a major step forward and this commercialization project will foster excellence in the way our industry produces food for people and animals. AB Agri is a perfect partner, having a strong history of bringing new animal feed ingredients to market and the vision to see responsible proteins as a key growth driver in the years to come."
About Livalta
Livalta, an AB Agri company, develops new, responsible proteins for feed and food using the latest science and technology. It seeks to contribute to making food systems more responsible, meeting the needs of people and the planet. It produces local, traceable proteins from e.g. co-products, algae or single cells and transforms them into high value feed and food ingredients.
About AB Agri
AB Agri is the agricultural division of Associated British Foods and manufactures animal feed, nutrition, and technology-based products and offers data services for the agri-food industry. It operates all along the food industry supply chain. It produces and supplies compound animal feed, feed enzymes, specialised feed ingredients and a range of value-added services to farmers, feed and food manufacturers, processors and retailers.
Associated British Foods is a diversified international food, ingredients and retail group with sales of £13.9bn and 133,000 employees in 53 countries. It has significant businesses in Europe, Africa, the Americas, Asia and Australia. Its aim is to achieve strong, sustainable leadership positions in markets that offer potential for long-term profitable growth. It looks to achieve this through a combination of growth of existing businesses, acquisition of complementary new businesses and achievement of high levels of operating efficiency.
About Pond Technology
Located in Markham, Ontario, Pond Technology 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.
Forward Looking Statements
This press release contains forward‐looking statements within the meaning of applicable securities laws, including statements regarding Pond's relationship with Livalta, installation of the algae demonstration system and construction and timing of the pilot plant in Norfolk, Pond's anticipated receipt of the purchase price, technology access fees and royalty, and anticipated strains of algae produced. Such forward‐looking statements are based on certain key expectations and assumptions made by Pond, including, among others, assumptions regarding successful operation of the algae demonstration system, sale of algae produced on favourable terms, construction of the pilot plant on time and within budget, compliance by Livalta of its contractual obligations with Pond, the continued legislative (including tax) regime in which Pond operates, availability of cost‐effective labour and supplies, the proper functioning of Pond's technology, the quality of the algae produced, the demand for Pond's technology, the ability of Pond to successfully compete, cash flow and expenses, and obtaining and maintaining intellectual property protection. Although Pond believes that the expectations and assumptions on which such forward‐looking statements are based are reasonable, undue reliance should not be placed thereon and Pond can give no assurance that they will prove to be correct. By its nature, such forward‐looking statements are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed, including the risks set forth in Pond's management's discussion and analysis of financial condition and results of operations for its year ended December 30, 2020 and for the period ended June 30, 2021, available on Pond's profile on SEDAR at www.sedar.com.
Readers are cautioned not to place undue reliance on this forward‐looking information, which is given as of the date hereof, and to not use such forward‐looking information for anything other than its intended purpose. Pond does not undertake any obligation to update publicly or revise any forward‐looking information, whether as a result of new information, future events or otherwise, except as required by law.
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.
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