Pond
Technologies and Livalta, an AB Agri Company, agree to Create
World's First Scalable Algae Plant utilizing Carbon Emissions for
the Production of Protein used in Animal Feed
Supply and
Licensing Agreement with Livalta Valued at over $5
Million
MARKHAM, ON / InvestorsHub
NewsWire / September 8, 2021 / Pond Technologies Holdings Inc.
("Pond") (TSXV: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.
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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
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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.
SOURCE Pond Technologies Holdings
Inc.
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