COMPANY OVERVIEW - Corporate Presentation (Jan 2018)ii
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COMPANY OVERVIEW
JANUARY 2018
Disclaimer 22
Certain information regarding Pond Technologies Holdings Inc. (“Pond”) included in
this presentation including management’s assessment of product pricing, timing of
capital expenditures and anticipated revenues and costs relating to the operations of
Pond constitutes forward-looking information. This information is subject to risks,
uncertainties and assumptions that may be difficult to predict. Actual results may
differ and the difference may be material. Readers are cautioned that any such
forward-looking information are not guarantees of future performance and that the
factors mentioned and other factors not mentioned may materially affect the
performance of Pond’s future operations. Furthermore, information presented herein
is dated at the time prepared and Pond does not undertake any obligation to update
publicly or to revise any of the forward-looking information, whether as a result of
new information, future events or otherwise, except as required by applicable
legislation.
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The Sustainability Gap 33
It’s no secret, human activities are unsustainable…
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The Solution is Algae 4 Algae literally built our world. It is the source of all fossil fuels and is the foundation of the food chain – perfect for fish, animals, and humans. It has essential nutrients that are unavailable anywhere else on the planet. Pollution is it’s food. The challenge has been to commercialize algae cultivation…
5
6 Pond represents a new era in sustainability. We’ve commercialized algae’s inherent power to mitigate pollution and nourish life on Earth.
Green Gold 7 SUPERFOOD POLLUTION ABATEMENT CLEAN ENERGY Containing numerous well-documented Algae feasts on the carbon dioxide and Algae can be processed into products health benefits, algae produced from other pollutants found in industrial that displace the use of petrochemicals, food-grade CO2 can be used in high- emissions, growing rapidly when paired like biofuels and bioplastics. It is also value nutraceutical products. with optimal lighting conditions. ideal for animal feeds and fertilizers.
Strategic Overview 8
Using a variety of CO2 feedstocks, Pond has developed proprietary photobioreactors
and control systems that enable revenue generation from multiple sales channels
and algae products.
Nutraceuticals
Pond uses clean CO2 sources to grow algae for high-value food additives
such as astaxanthin, chlorella, and spirulina
We own and operate the production facility and sell the product
Pollution Abatement
Pond’s technology consumes the CO2 contained in the Greenhouse Gas
(GHG) emissions of major industrial facilities to grow algae for biofuels,
bioplastics, animal/aquaculture feeds, and use in land reclamation
We sell proprietary equipment and license our technology to
industrial emitters
Nutraceuticals Channel 9 We own and operate the production facility and sell the product Animal/Aquaculture Feed Direct to large manufacturers Human Health Supplements Direct to distributors Direct to manufacturers Branded ‘Pond Organics’ product to end users
Pollution Abatement Channel 10
We sell proprietary equipment and license our technology to industrial emitters
Proprietary Photobioreactor & Control Systems
Direct to industrial emitters
To heat and power plants
‘End-of-pipe’ solution
Our proprietary photobioreactors are unlike anything else in the world. They require only as
much space as a parking spot, and connect directly to industrial smoke stacks, turning pollution
feedstock into algae!Why Our Platform? 11
11
WE GROW ALGAE FASTER THAN NATURE DOES
Pond controls the growth environment, using ultra efficient,
proprietary LED light engines, with integrated control circuitry unlike
any other on Earth. This greatly accelerates the natural process of
photosynthesis.
TRADITIONAL PRODUCTION METHODS ARE TOO COSTLY
Unlike the competition, Pond has created an industrial platform. The
large land area required and exposed environmental conditions in
traditional approaches result in low harvests and high production costs
—we’ve isolated and optimized all the variables.
KEY PARTNERSHIPS
We were selected by the National Research Council of Canada as sole
technology partner for their flagship $37MM Algae Carbon
Conversion Program. Pond has also partnered with Votorantim
Cement North America, US Steel Canada, Stelco, and Markham
District Energy.
SIGNIFICANT GOVERNMENT SUPPORT & FUNDING
We have received over $8.5 million in support from various Canadian
government programs as well as the Asia Pacific Partnership,
demonstrating federal and global enthusiasm for our technology.
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ALGAE PRODUCTION:
T H E O L D W AY
• Uncontrolled
• Low harvest rate (0.1g/L/day)
• Large land area required (30 m2 required to
produce 1 kg of algae per day)
• Few geographies are suitable, typically far
from markets
• Evaporation, contamination, heat, weather,
constant challenges
P O N D ’ S P L AT F O R M :
T H E B E T T E R W AY
• Fully controlled
• Contaminant-free production
• High Harvest Rate (1-2g/L/day)
• 300 times less land required – we fit the
productivity of football field-sized open
system into a parking space
• Scalable bioreactors can be located
anywhere – close to marketValidation & Partnerships 13
Our Complete Algae Platform 14
We optimize growth The algae is sold as
conditions using biofuels, bioplastics,
proprietary lighting and animal feeds, fertilizers,
computer algorithms to and nutraceutical
maximize output supplements
POND PHOTOBIOREACTOR PRODUCTS
CARBON FEEDSTOCK PURE ALGAE
We harvest carbon dioxide We derive pure algae
from industrial emissions which can then be
or bottled CO2 processed into marketable
productsAlgae Product Markets 15
LAND RECLAMATION
USD/YEAR GLOBAL MARKET
$122B
BIOFUELS
USD/YEAR GLOBAL MARKET
$246B
NUTRACEUTICALS Up to $160,000/tonne
USD/YEAR GLOBAL MARKET
$278B
ANIMAL FEEDS
USD/YEAR GLOBAL MARKET
$400BNutraceuticals: Algae for your Health 16
REDUCES
FIGHTS CANCER
CHOLESTEROL
PROMOTES PROMOTES
SKIN HEALTH EYE HEALTH
PROMOTES PREVENTS
HEART HEALTH BLOOD CLOTTING
KILLS DANGEROUS REDUCES INFLAMMATION
BACTERIA/FUNGI
Astaxanthin Spirulina & Chlorella
Dubbed the “King of Carotenoids”, this powerful antioxidant is Spirulina and Chlorella are both forms of algae which provides an
responsible for turning salmon, crab, lobster, and shrimp flesh extremely potent and well-balanced nutrient profile. Excellent for
pink. It has broad health implications for humans, and unlike helping the body detoxify, assisting with a strong immune
other antioxidants, astaxanthin never becomes pro-oxidant in system, and rounding out a well-balanced diet.
the body.Global Nutraceutical Markets 17
Chlorella $140MM
2014 Spirulina $200MM
Astaxanthin $447MM
Chlorella $170MM +21%
2020 Spirulina $240MM +20%
Astaxanthin $1.1B +246%
POND OPPORTUNITY 2020
+191% 2014
$787MM
$1.51BNutraceutical Revenue Model 18
5 YEAR REVENUE TARGET GROSS MARGIN CASH FLOW POSITIVE
$99MM 80% 18 months
BIOREACTOR SIZE CAPEX/UNIT OPERATING COSTS/YEAR/UNIT
65,000L $1.6MM $600K
(approx. 1 Shipping
container)
Astaxanthin Chlorella Spirulina
Price per tonne $160,000 $25,000 $15,000
Revenue per bioreactor $3.8 MM $1.2 MM $0.9 MM
# of bioreactors 18 14 14
Target revenue in 5 years $69.1 MM $16.8 MM $12.6 MMPollution Abatement: Pond’s technology at work:
St. Mary’s Cement—St. Mary’s, Ontario. 19
GHG Utilization
v Global industrial greenhouse gas emissions are a
multi-billion dollar market
v Governments are mandating carbon management
v Technology advantage—can be deployed anywhere, For St Mary’s Cement and our parent company,
generating free cash flow Votorantim Cimentos, this collaboration with Pond
Technologies and the National Research Council of
v Strong IP protection Canada advances our goals of product innovation
and sustainable development, while strengthening
v First commercial carbon abatement project our position as a leader in the building materials
commencing at Stelco’s Lake Erie Works steel mill, Q4 sector.
2017
v Signed MOU with SNC Lavalin as a Filiberto Ruiz, President and CEO, Votorantim
strategic world-wide project partner Cimentos, North America
Massive opportunity:
→ 10,000+ large CO2 emitters in NA
→ 3 billion+ tonnes CO2 available
→ A trillion+ USD+ potential marketFinancial Forecast $millions
20
160
Nutraceuticals Revenue
140
GHG Revenue
EBITDA 120
100
$89.2
80
60
$47.9
40
$14.5
20
-$1.6 $3.1
0
2017 2018 2019 2020 2021Sales Pipeline – Combined Heat & 21
Power(CHP)
Pond has executed an agreement with Markham District Energy (MDE) to host our first commercial
nutraceutical algae plant:
• In stage one of the project, Pond will earn $5MM in revenue from three bioreactors
• Pond is projecting as many as 30 additional bioreactors to be housed on site in subsequent stages– over
$50MM in revenue
• MDE is providing a site close to Pond’s Head Office, 25,000 sq ft, well serviced, with three CO2 sources
• The MDE agreement includes a joint global marketing initiative for Pond’s technology to other district
energy providers through the International District Energy Association, over 2,200 members in 26
countries in the association - a ready sales and marketing channel
Greater Sudbury Utilities have executed a contract with Pond for the first stage in developing a full plant:
• Step one is a feasibility study to define the project size
• Initial estimates for the project are $15-$20MM for the algae facility
Pond has been approached by a number of other small utilities, and will generate repeatable sales with this
model in the CHP verticalIP Portfolio 22
9 Algae
Platform
Patents
16 Active Protection
Pending
US Patents
9 US patents in process, Modulation patents Equipment related patents
with more than 3x more protect flow of stack gas – to cover new equipment
patents filed crucial for industrial algae
internationally growth
Dilution patents protect Advanced process patents
Patents granted to date
mixing of stack gas
include 4 US, 1 European, 1
Taiwanese, and 1 Chinese, Adaptive control system
with additional new that predicts optimum
provisional filings adding to harvest rates based on
the portfolio growth
Potential for 5+ additional IP Portfolio allows Pond to
equipment-related US own the space
patents on new
technologiesPond Capital Structure 23
Shareholders Shares
Management / Founders 5,379,686
St. Mary’s Cement 3,042,572
Other 10,992,172
Issued and Outstanding: 19,414,430
Options @ $2.00 / share 1,097,500
Warrants @ $2.50 - $3.00 / share 5,792,575
Fully Diluted Shares: 26,292,005Management & Board 24 STEVE MARTIN CEO & DIRECTOR § Senior Scientist for EXFO Photonics Solutions, a $1B public company involved in developing class leading optical fibre test and measurement, where he pioneered development of new LED modules and fibre-optic packaging solutions § Director of Opto-Electronic Research, Efos Inc., leading development of new optical imaging systems, illuminators, and polymer based photonics solutions § Former Director of the Jeffrey Skoll BASc/MBA Program offered at the University of Toronto § Designed critical optical and display components for US military fighter jets THOMAS MASNEY CFO § CFO with global experience spanning North America, Europe, and Asia § Financial, audit, and regulatory reporting experience in Canada, China, the United States, and the United Kingdom § Worked in venture capital, mergers & acquisitions, with both Goldman Sachs & General Electric, and has worked in audit and corporate recovery with Ernst & Young and Price Waterhouse PETER HOWARD VICE PRESIDENT, SUSTAINABILITY • Former manager of the Sustainability and Climate Change practice at PriceWaterhouseCoopers, overseeing the development of a multi-million dollar consulting practice • Former Business Development director for Zerofootprint Carbon, a carbon consulting and offsetting company, where he grew revenues from 0 to over ~$1,000,000 in 2 years • Former Senior Advisor to the Ontario Government on greenhouse gas emission policy EMIDIO DI PIETRO VICE PRESIDENT, ENGINEERING • Former Manufacturing Manager with the Tesma division of Magna, with annual revenues of $150 million • Extensive experience in areas of program management, from receipt of order to steady state production including design, validation, production launch, and in-house/customer production process validation • Brings a wealth of experience from many different aspects of Engineering critical in the development and deployment of Pond’s technology
Management & Board 25
DR. GERALDINE KENNEY-WALLACE
CHAIRMAN
§ Past President and Vice-Chancellor of McMaster University
§ Extensive board experience – former Director of the Bank of Montreal, Dofasco Inc., DMR Inc., General Motors (Canada) and
Northern Telecom Ltd.
§ Former Managing Director of Baesystems
§ Director of Pharmacia & Upjohn Company LLC since 1993
BILL ASSELSTINE
DIRECTOR
§ Vice President Technical, Sustainability, and Safety at St. Mary’s Cement, where he has worked for over two decades in
various capacities
§ Oversees procedures and programs to minimize environmental risks and ensures regulatory compliance
§ Directs the management of all company properties including registration, taxation, land purchase, development, sale, or
lease
SAURIN PATEL
DIRECTOR
• Dedicated to skilled advisory in the areas of accounting, tax, and business strategy
• Holds a CPA, CMA. and Masters of Commerce
ROB MCLEESE
DIRECTOR
• Appointed to Export Development Canada’s Board of Directors
• Founder & President of Access Capital Corp., a financial advisory firm specializing in the independent power industry
• Chairman & President of ACI Energy, Inc., which owns and operates two waste coal fueled power plants in the US
• Recipient of the 2011 Probyn Prize for innovation in sustainable energy finance and the 2012 Queen Eizabeth II Diamond JubileeKey Advisors 26 KEVIN ANDRADE CORPORATE STRATEGY & COMMERCIALIZATION § SVP and General Manager at SNC-Lavalin’s Toronto Project Delivery Centre, overseeing a staff of 1,100 executing mining and metallurgy capital projects and studies across Canada. § Vice president Sulphur and Emissions Solution Group for SNC-Lavalin. § Management Consultant and Advisor to the CEO for Uranium One, Inc. § Lawyer with experience at Tory’s and Goodwin Proctor GRANT SMITH NUTRACEUTICAL STRATEGY § President of RFI Canada, RFI provides specialized, innovative functional ingredients to the nutritional, pharmaceutical, food and beverage industries in Canada and the USA. § Responsible for driving new product development from the marketing / concept development stage to the complete finished product in custom packaging for RFI clients.
Contact Us 27 Address Phone & Email Social Media 250 Shields Court #8 (416) 287-3835 LinkedIn/Pond Technologies Markham, ON. L3R 9W7 steve.m@pondtechnologiesinc.com
28
THANK YOU
We appreciate your time and consideration! Please don’t
hesitate to contact us with any comments or questions. We
look forward to taking the first step in our journey together.
www.hamptonfinancialcorp.com
© 2016 Hampton Financial Corporation. All Rights Reserved.Appendix: Financial Forecast 29
Overview'Forecast
(CDN$&millions) 'Forecast Total
2017 2018 2019 2020 2021 5'Years
Comments Pollution'Abatement'and'R&D
Revenue &2 5.7 16.4 31.4 50.7 104.2
Cost&of&goods&sold &2 (3.3) (9.4) (18.1) (29.2) (59.9)
Does not include any cashflow from R&D&&&operating&costs (2.3) (3.2) (3.8) (4.5) (5.1) (19.0)
producing oil asset Government&funding&&&fees 0.8 1.4 0.8 0.8 0.8 4.6
(1.6) 0.6 3.9 9.6 17.2 29.9
Nutraceuticals
Assumes $6.5 million RTO Revenue &2 4.1 15.7 57.0 104.7 181.6
concurrent financing in Q4 2017 Pre2production&costs &2 (0.3) &2 &2 &2 (0.3)
Operating&fixed&&&variable &2 (1.2) (4.6) (16.5) (30.4) (52.7)
Sales,&marketing&&&shipping &2 (0.2) (0.6) (2.3) (2.4) (5.4)
Model assumes no further equity
'H 2.5 10.5 38.2 72.0 123.3
raises Net'Operating'Cash'FlowHEBITDA'' (1.6) 3.1 14.5 47.9 89.2 153.1
Investing'Activities
Positive EBITDA projected in 2018 Capitalized&patents&&&IP (0.2) (0.2) (0.2) (0.2) (0.2) (1.0)
Capital&expenditures
&&&Nutraceuticals &2 (6.7) (12.6) (31.6) (31.5) (82.5)
&&&Pollution&abatement (0.3) (0.3) (0.3) (0.3) (0.4) (1.6)
$153 million EBITDA projected over
(0.5) (7.2) (13.2) (32.2) (32.1) (85.1)
the 5 year period
Financing
Share&Issuance&net&of&issue&costs 7.1 &2 &2 &2 &2 7.1
Loan&repayments (2.1) (0.4) (3.8) (0.2) &2 (6.5)
RTO&parent&advances &2 3.0 2.0 &2 &2 5.0
5.0 2.6 (1.8) (0.2) 'H 5.5
Increase/(Decrease)'In'Cash' 2.9 (1.5) (0.5) 15.5 57.1 73.5
Carryforward'Cash'Balance 3.4 1.9 1.4 16.9 74.0You can also read
