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Poda Holdings acquires equipment, patents from China partner for C$3.45m

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Poda Holdings (CSE: PODA) (FSE: 99L) (OTC: PODAF) has signed a purchase agreement with its Chinese manufacturing partner to acquire Poda Pod manufacturing equipment, 15 patent applications related to Poda Pod technology, and three Chinese trademarks for approximately C$3.45m payable in cash. The manufacturing equipment is comprised of all proprietary custom-built equipment for Poda Pods production capable of producing an estimated 5 million Poda Pods per annum.

Poda is actively engaged in the global commercialisation of Heat-not-Burn (aka HNB) smoking products, which have the potential to reduce the risks associated with combustible smoking products. Poda has developed a patented HNB system that uses proprietary biodegradable single-use pods, which are both consumer and environmentally friendly.

Poda manufacturing equipment to be shipped to Canada

All manufacturing equipment Poda has purchased will be shipped to Vancouver. The 15 patent applications were filed in China and represent unique product design and manufacturing methods applicable to the development and large-scale production of Poda Pods.

The innovative design of Poda’s HNB platform prevents cross-contamination between the heating devices and the pods, eliminating all cleaning requirements and providing users with the most convenient and enjoyable potentially-reduced-risk smoking experience. Poda’s HNB system is fully patented in Canada and is patent pending in over 60 additional countries, covering almost 70% of the global population.

The Poda Pods are the first and only cigarettes to have a completely closed end. This exclusive design eliminates all cleaning requirements and provides a truly ashless HNB cigarette. The design, which could be of great interest to Big Tobacco companies, also has applications within the medical space, e.g. as a menthol inhaler.

Ryan Selby, CEO of Poda, explained: “Given the general unrest of the geopolitical situation around the globe, the company has determined it will manufacture Poda Pods in North America. This will reduce the amount of lag time from manufacturing to customer delivery and will provide a significant reduction in tariffs allowing the company to be more competitive. The acquisition of the manufacturing equipment and patent applications is an important step in the growth and value of Poda which the company believes outweighs the resulting delays in production.”

Unique tobacco-free blend

Poda’s fully patented system is one of a kind and solves the major pain-point that other HNB products suffer from: daily cleaning requirements. Poda’s flagship Beyond Burn Poda Pods contain a unique tobacco-free blend of pelletised tea leaves infused with synthetic nicotine, which provides adult smokers with a smoke-free alternative to their regular habit without sacrificing satisfaction.

Poda’s Selby has said previously the company’s focus in North America will be the distribution of its Beyond Burn, THC and CBD applications. Among its 60 patents pending are those filed in the potentially highly lucrative US market.

Selby told The Armchair Trader: “Our competitors cannot achieve the same experience level, given the open-ended cigarette ashes on the heating element, requiring cleaning after only a few uses. We strongly believe our technology is disruptive in the multi-billion HNB space. Our focus is now on increased capacity and distribution, and we continue to utilise the capital raised as a public company to achieve our objectives.”

Beyond Burn Poda Pods have been expertly crafted to mimic the sensorial experience of traditional cigarettes without the smoke, without the smell, and without the tobacco.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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