Vancouver, BC / TheNewswire / March 15, 2019 - PODA TECHNOLOGIES LTD. ("Poda" or the "Company") is pleased to provide an update on its business and development.
Ryan Selby, President and Chief Executive Officer of the Company explained "Since the spinout by way of plan of arrangement from Invictus MD Strategies Corp. in November 2018, Poda has been busy preparing for launch. In March 2019, the Company completed the acquisition of California Distribution Company ("CDC") which provided Poda with $638,000 of short-term funding and access to an existing California distribution network that is expected to be utilized for future sales of Poda products.
The Company completed a strategic consolidation of its share structure on a 4.508-to-1 basis on January 31, 2019 which may serve to make the Company more attractive for investment purposes. While shareholders will hold fewer shares of the Company following the consolidation, each shareholder's percentage ownership in the Company and proportional voting power will remain unchanged. Poda is currently not listed on an exchange and the exact nominal value for each share has not been determined. The Company is evaluating all options available to it for its future. While one of those options could be to list the Company's shares on a public stock exchange, whether or not that option will be pursued, and the possible timing of listing cannot be determined at this time.
Poda is also very pleased to announce that it has completed development of the Company's first commercially-ready devices. The initial feedback from limited focus-group testing using various vaporizable substances indicates that consumers are impressed by the performance of both the Poda device and the biodegradable Poda pods. Mr. Selby commented "The Company remains firmly committed to our belief that the zero-cleaning Poda vaporizer will be an impactful product in the global vaporization market, and will provide consumers with an enjoyable, convenient, cost-effective, and potentially reduced-risk vaporization experience across a variety of vaporizable substances. We are committed to our goal of bringing our products to market as soon as possible, and the entire Poda team has been working diligently toward the realization of that goal. I am very proud of the work our team has been doing, and I am extremely excited for the future of Poda."
The initial production run for the entry-level Poda device is now well-advanced, and the Company is currently constructing a custom-designed production line to produce the empty biodegradable Poda pods. When the production line is complete, the Company anticipates that it will be capable of outputting over 3 million Poda pods per month, with monthly production capacities expected to steadily increase from that point onwards. Poda has also been developing a small-scale semi-automated filling machine designed to enable a single operator to fill up to 10,000 Poda pods per day. The Company anticipates that the modular design will allow the filling machines to be installed directly inside regional production facilities, and individual facilities will be able to install multiple machines side-by-side to increase daily filling capacities. Barring any unforeseen delays, the Company anticipates that both the Poda pod production line and the modular filling machines will be completed within the next 3 months, at which time the Company projects that it will have an adequate opening inventory of Poda devices on hand. The Company is still considering its optimal product launch strategy and is evaluating the available options, however, the exact timing and location for the launch of Poda's products cannot be determined at this time.
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Poda is also very pleased to announce that it has been in discussions with global consumer goods manufacturers and that the Company is exploring various opportunities for partnership, licensing or other strategic arrangements that could provide Poda with a pathway to increase the Company's global reach. The Company has also been pursuing various opportunities for raising funds to be used towards the launch, deployment and ongoing development of the Company's products.
Additionally, the Company is pleased to announce that Paul Ciullo has been appointed as Chief Financial Officer ("CFO") effective March 1, 2019. Mr. Ciullo's appointment fills a vacancy created by the resignation of Jon Morrison on February 28, 2019.
Mr. Ciullo has a diverse professional background and specialized in financial reporting and project management during his time spent working in senior corporate finance and accounting positions for various Fortune 500 companies. Mr. Ciullo's most recent roles include serving as the CFO of a cryptocurrency mining company and an information technology services organization. He is a CPA who obtained a Bachelor's of Science in Accounting from SUNY Geneseo and an MBA from Pennsylvania State University.
Mr. Selby commented "The Company looks forward to the future with Mr. Ciullo as CFO. Mr. Ciullo is a seasoned accounting professional who brings a wealth of valuable financial knowledge and relevant work experience that will be vital for the Company as we continue to expand our operations." The Company wishes to thank Mr. Morrison for his contributions to Poda.
The Company has also granted an aggregate 2,943,190 incentive stock options to certain officers, directors and other eligible persons of the Company. The options are exercisable, subject to vesting provisions, over a period of five years at a price of $0.16 per share.
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On Behalf of the Board,
Ryan Selby
Chief Executive Officer and Director
About Poda
Poda is actively engaged in the development and commercialization of vaporizable products, which have the potential to reduce the risks associated with combustible products. In addition to several other intellectual property holdings, the Company has developed an innovative heat-not-burn vaporization system that uses proprietary biodegradable single-use pods, which are both consumer and environmentally friendly. Poda's patent-pending design prevents cross-contamination between the electronic vaporization device and the pod, eliminating all cleaning requirements and providing users with the most convenient and enjoyable potentially risk-reduced vaping experience. Pod refill options range from dried flower and tobacco to liquids and concentrates and can easily be switched during vaping sessions to suit any adult consumer's mood.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including that CDC's California distribution network is expected to be utilized to sell Poda's products, that the consolidation may serve to make Poda more attractive for investment purposes, that Poda may seek a public listing, that Poda's production is expected to be outputting over 3 million Poda pods per month and is expected to steadily increase, that, barring any unforeseen delays, the Poda pod production line and modular filling machines will be completed on the anticipated timeline, if at all, that Poda may enter into agreements with global consumer goods manufacturers and that such agreements could provide Poda with a pathway to increase its global reach are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that CDC's California distribution network will be utilized to sell Poda's products, the consolidation will serve to make Poda more attractive for investment purposes, Poda may and will be eligible to seek a public listing, that Poda's production will be outputting over 3 million Poda pods per month and that its output will steadily increase, that the Poda pod production line and modular filling machines will be completed on the anticipated timeline, if at all, that Poda will enter into agreements with global consumer goods manufacturers and that such agreements will provide Poda with a pathway to increase its global reach. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that CDC's California distribution network will not be as extensive as anticipated by Poda's management or will be unable to be utilized to sell Poda's products, that the consolidation will have no effect on Poda's attractiveness for investment purposes, that Poda will not seek a public listing or will not be eligible to seek a public listing, that Poda's production will not be outputting over 3 million Poda pods per month and that its output will not steadily increase as expected by management, that the Poda pod production line and modular filling machines will not be completed on the anticipated timeline, if at all, that Poda will not have adequate opening inventory of Poda devices on hand, that Poda will not enter into agreements with global consumer goods manufacturers and that such agreements will be unable to provide Poda with a pathway to increase its global reach. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.