PODA SIGNS AGREEMENT TO MANUFACTURE 42 MILLION PODS PER ANNUM
Vancouver, BC, February 6, 2020 – PODA TECHNOLOGIES LTD. ("PODA" or the "Company") has signed a letter of intent (“LOI”) to form a Joint Venture for the purpose of developing, constructing, operating,
maintaining, and managing a facility which will manufacture & distribute PODA’s patented heat-not-burn pods exclusively for PODA (the “JV”).
Initially the parties will contribute approximately $100,000 CDN each to develop manufacturing equipment capable of producing between 300,000 to 600,000 empty PODA pods per annum (“Phase 1 Production
Equipment”). The JV ownership will be split 79% to PODA and 21% to JV partner. Post completion of the Phase 1 Production Equipment, PODA will contribute an additional $600,000 CDN and the JV Partner will
contribute $200,000 CDN to develop manufacturing equipment capable of producing approximately 42 million empty PODA pods per annum (“Phase 2 Production Equipment”). The expected date of completion of the Phase 1 Production Equipment is March 31, 2020 and the expected completion of Phase 2 production Equipment is July 31, 2020.
Ryan Selby, CEO, commented “Our proprietary heat-not-burn system required us to develop proprietary equipment to manufacture at scale given there is no other product like PODA on the market. This JV will
solidify our ownership in the intellectual property (“IP”) that is created as part of this process. Traditionally
many companies farm out the development of manufacturing equipment to third parties which can result in
increased costs of raw materials and risk of IP leakage. PODA’s vision is to own the entire value chain.”
On Behalf of the Board,
Ryan Selby
Chief Executive Officer and Director
