Ceapro s Journey Diversifying our Business Model

Transcription

1 Enhancing Life Through Nature Ceapro s Journey Diversifying our Business Model Gilles R. Gagnon, M.Sc., MBA, ICD.D President and CEO TSX: CZO Annual General and Special Meeting of Shareholders May 29,

2 2 Forward Looking Statements This presentation contains forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements, including those predicting the timing of product development and launches. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company s expectations are correct. All forward-looking statements are expressly qualified by this Cautionary Statement.

3 Making Ideas Work from the Bench to Market /Creation of a Business Model Concept (New Idea) Business Plan (Innovative & Specific) Financing (Network, Partners) Action

4 4 Ceapro s Expectation

5 5 Ceapro s Evolution

6 6 Ceapro s Progression Acquire: - Vexco Health Inc. - Minerva Animal Health - Canamino Inc. Moved Processing to FPDC Moved Processing to ABPI Initiated PGX Scale-up Initiated Malting Technology Scale-up UofA Licensing Agreement Developed Active Ingredient for Cosmetic & Animal Care Built New Facility Sales Sales Sales Sales Sales Sales Sales Sales Sales $0.4M $0.8M $1.6M $2.4M $3.3M $4.0M $5.6M $5.1M $8.9M 2016 Sales $13.7M Raised $20M Ceapro Inc. listed on TSX (CZO) Portfolio Realignment Strategic Direction Distribution Agreement

7 7 Ceapro s Progression Acquire: - Vexco Health Inc. - Minerva Animal Health - Canamino Inc. Moved Processing to FPDC Moved Processing to ABPI Initiated PGX Scale-up Initiated Malting Technology Scale-up UofA Licensing Agreement Acquire JUVENTE Developed Active Ingredient for Cosmetic & Animal Care Built New Facility Sales Sales Sales Sales Sales Sales Sales Sales Sales $0.4M $0.8M $1.6M $2.4M $3.3M $4.0M $5.6M $5.1M $8.9M 2016 Sales $13.7M Raised $20M Ceapro Inc. listed on TSX (CZO) Portfolio Realignment Strategic Direction Distribution Agreement Raised $10M

8 8 Corporate Overview Focused on the development and commercialization of active ingredients for healthcare and cosmetic industries leveraging proprietary delivery systems Industry leading extraction manufacturing processes produce high value active ingredients from natural plant based sources Two value-driving active ingredients used in multiple household name cosmetics and personal care products: beta glucan and avenanthramides Revenue generating, de-risked business model supports near-term and future growth - Strengthen and expand revenue generating base business - Imminent pivot into biopharmaceutical company through expansion into high-growth markets Acquisition of Juvente DC marks important step in strategic market diversification business plan - Closer to the customer - New anti-aging skin care product line represents opportunity in a $5B market and utilizes beta glucan and avenanthramides

9 Vision & Mission CEreal Advance PROcessing Vision: Use Nature s Gifts to Enhance Life Mission: To improve personal health and well-being by providing high quality and innovative proprietary biologically active compounds from botanical and other renewable plant resources to manufacturers of cosmeceuticals, nutraceuticals, developers of therapeutics and animal health care markets.

10 Key Management and Board Key Management Gilles Gagnon, M.Sc., MBA President and Chief Executive Officer - Over 30 years of experience in the pharmaceutical industry where he participated in launching multiple new pharmaceutical products - Former CEO of AEterna Zentaris and Vice President, External Affairs, for Novartis Pharma Canada Inc. Stacy Prefontaine, CA Chief Financial Officer - Almost 20 years of global finance and accounting experience in public company external financial reporting, corporate tax compliance and planning, and accounting practices and controls - Former Principal at Grant Thornton LLP and Partner at Stout & Company LLP Jean-Guy Boulet General Manager, Juvente DC - Over 30 years of experience in strategic marketing, marketing intelligence and growth strategy - Successful track record of launching and implementing strategic growth initiatives in international markets - Founder of Juvente DC Glenn R. Rourke, MBA - Chair of the Board - Retired Senior Vice President/Managing Director, BMO Financial Group Gilles Gagnon M.Sc., MBA - President and Chief Executive Officer Ulrich Kosciessa, Ph.D. - Member of the Executive Management Board of Medac GmbH, Managing Director of Medac International, and Chairman of the Board of Medac Pharma Inc. William W. Li, M.D. - President, Medical Director and Co-founder of the Angiogenesis Foundation Don Oborowsky - President and owner of Waiward Capital John Zupancic Board of Directors - Retired Manager of Supply and Technical Services for the Strathcona Refinery 10

11 Key Operational Accomplishments Announced positive results from the first phase of a project to develop a functional energy drink: - Presented at 16th European Meeting on Supercritical Fluid Technologies held in Lisbon, Portugal; Achieved the first major milestone with the PGX Enabling Technology completion PGX pilot scale facility, installation of custom-designed process equipment, and formation of expert PGX team; Signed agreement with University of Alberta, utilizing $332K grant from Canadian Government, to conduct impregnation studies using PGX Technology; Initiated bioavailability study in animals for a new and unique water soluble chemical entity CoQ10-beta glucan to be used in a functional drink; Conducted human bioavailability and bioefficacy studies using Ceapro s unique high concentration formulation of avenanthramides;

12 Key Operational Accomplishments (Cont d) Expanded bioefficacy study evaluating avenanthramides in exercise-induced inflammation to evaluate additional biomarkers; Launched Ceapro s Proprietary Line of Cosmeceutical Products, Juvente DC, following the successful execution of the Juvente DC Inc. acquisition, marking an important step in Ceapro s strategic market diversification business plan of being closer to the customer; Pursued research program initiated with McMaster University for testing of materials using PGX Technology; a scientific paper has been submitted for publication in 2018; Pursued research collaboration with prestigious German based research organization, Fraunhaufer, for the development and testing of unique membranes to be used with the PGX Technology; and

13 Key Operational Accomplishments (Cont d) Received Intent to Grant Letter from European Patent Office for Ceapro s unique and disruptive enabling PGX Technology covering proprietary methods and use of micro- and nano-sized particles generated by applying PGX Supercritical Fluid Technology. Announced the acceptance of abstract for presentation at the Nutrition 2018 conference for bioefficacy study with avenanthramides in exercise-induced inflammation; Filed a Clinical Trial Agreement with Health Canada for pilot clinical study to develop beta glucan as a cholesterol reducer; and Signed a Master Service Agreement with prestigious Montreal Heart Institute. Granted European Patent for PGX

14 14 Core Expertise Identification, extraction and purification of active compounds from natural sources Creating & selling innovative ingredients for: - Personal Care industries - Healthcare industries

15 From Field to Formulation Field Research Manufacturing Consumer Identify Discover Develop Provide Unique Plants Novel Functional Actives Innovative Processes Innovative Products 15

16 16 Unique Bioprocessing Expertise Two value driving bioactives at core of base business: - Beta glucan - Avenanthramides

17 17 Diversified Business Model Expected to Drive Growth Revenue Generating Base Business Multiple Growth Opportunities Cosmeceuticals Nutraceuticals Enabling Technologies

18 18 Beta Glucan Water soluble fibre found in the cell walls of oat kernels Highly effective in stimulating collagen synthesis Key Benefits: - Skin restructuring and wound healing - Replenishes and protects the skin s moisture barrier - Proven to effectively reduce fine lines and wrinkles, decreasing the visible signs of aging - Linked to cholesterol reduction and/or reduced risk of heart disease Ceapro was first to demonstrate that beta glucan can be used as a delivery system

19 19 Avenanthramides Group of polyphenol compounds found exclusively in oats Antihistamine and anti-inflammatory properties - Provides relief for a host of skin conditions, such as eczema, chicken pox and insect bites Potential benefits in the control of inflammation-based diseases Ceapro is the only company in the world producing the only commercial natural avenanthramide product

20 20 Avenanthramides Clinically Proven in Cosmeceuticals Significant improvements in erythema symptoms associated in subjects with mild to moderate atopic dermatitis - 40% improvement in itch perception after 1 week - 62% of patients showed an improvement in their skin condition Subjects with atopy - 89% of subjects saw significant improvement in itch after 1 week - Continued improvement after 4 weeks

21 21 Beta Glucan and Avenanthramides in Multiple Household Name Products Aveeno Jergens Coppertone Dove Lubriderm 3M Nexcare KY Products Neutrogena Burt s Bees The Body Shop Philosophy ROC

22 22 Financial Performance Delivering Consistent Solid Results Year after Year Sales, ($M) Income (loss) from operations, ($M)

23 23 Juvente DC - Proprietary Line of Cosmeceutical Products Acquisition of Juvente DC in October 2017 marks important step in strategic market diversification business plan Represents opportunity in a $5B market Utilizes two value-driving active ingredients beta glucan and avenanthramides Anti-aging skin care product line: - Parfaite: a new generation anti-aging day cream - Absolue: an anti-aging night cream - Radieuse: an anti-aging eye contour care

24 24 Multiple High Value Growth Opportunities Cosmeceuticals Nutraceuticals Enabling Technologies

25 25 Fueling Our Nutraceuticals Pipeline From Plant to Pill Functional Drink Cholesterol Exercised Induced Inflammation

26 Beta Glucan: Functional Drink - Energy Booster Collaborating with the University of Alberta to develop a functional drink Impregnated beta glucan, as a delivery system, with the well-known co-enzyme Q10 as an energy booster Demonstrated first water soluble formulation of co-enzyme Q10 utilizing PGX technology Confirmed bioavailability of the New Water Dispersible Chemical Complex CoQ10 Beta Glucan Next Steps: Partnering and sales! Pure PGX BG ibg: 5.5% CoQ10 on BG 26

27 Comparison of CoQ10 Dispersion Stability Commercial: CoQ10 + Cyclodextrin Ceapro s ibg: CoQ10 + PGX β-glucan Sample Preparation: - Both contain 100 mg of CoQ10 - Both dissolved at 40 C in 250 ml of water Picture taken 18 hours after stirring

28 28 Comparison of CoQ10 Dispersion Stability After 18.5 hours After 70 days and counting

29 Morphology: CoQ10 Loaded β-glucan Powder Particle size of CoQ10: 92 nm ( nm) 200 nm 29 (Liu et al., 2018, Food Research International, 106: )

30 30 % Absorption Kinetics of CoQ10 Formulations

31 Beta Glucan: Cholesterol Reducer Oat Beta Glucan Linked to Cholesterol Reduction and/or Reduced Risk of Heart Disease Launching pilot clinical study to evaluate the efficacy of beta glucan as a cholesterol reducer The month placebo controlled study will enroll a minimum of 240 patients who cannot tolerate high doses of current treatments Additional biomarkers will also be evaluated for potential effect on insulin metabolism and other symptoms related to metabolic syndrome Study expected to commence Q

32 32 Avenanthramides: Exercise-Induced Inflammation Collaborating with the University of Minnesota to develop a functional food to alleviate exerciseinduced inflammation Results from bioavailability study demonstrated a significant reduction of inflammation biomarkers in the blood Results from bio-efficacy study using low and high doses of avenanthramides as a food additive to be presented on June 12, 2018.

33 33 Immuno-Regulatory and Anti-Inflammatory Effects of AVA in Eccentric Exercise-Induced Muscle Damage Oxidative stress Oat Avenanthramides (AVA) Eccentric Contraction Inflammation Delay Onset Muscle Soreness (DOMS) Vertical jump Soreness rating (1) Chemokines and Adhesion Molecules Vertical jump Soreness rating 8 weeks washout 8 weeks oat AVA Blood collections (2) Immune Cells (3) Muscle damage Blood collections

34 Immuno-Regulatory and Anti-Inflammatory Effects of AVA in Eccentric Exercise-Induced Muscle Damage Biomarkers CK and CD Markers Chemoattractants: o MCP-1, E-Selectin, G-CSF, GM-CSF, ICAM-1, VCAM-1 Inflammatory Markers: IL-1, IL-6, TNF-alpha, IL-8 Anti-inflammatory Markers: IL-10, IL-1ra 34

35 35 Potential For Multiple Value-Driving Opportunities Pressurized Gas Expanded (PGX) Liquid Spray Drying Novel spray drying technique for processing water-soluble biopolymers Platform that can produce numerous morphologies of biopolymers ranging from fine fibers to granular powder, which are highly water soluble Proprietary Enabling Technologies Extraction Fractionation Ethanol based extraction manufacturing technology Semi-continuous processes offer the ability to produce commercial scale quantities Proprietary Drying Technology Developed to produce pharma grade tablet of phenolic based compounds Ability to produce commercial scale quantities

36 36 Enabling Technologies Have Broad Utility

37 37 Ceapro PGX Scale-up Technology Evaluation Agreement with U of A Licensed the PGX Patent from U of A Extended the PGX Patent U of A License UofA Collaboration Functional Drink UofA Collaboration NSERC CRD PGX Nozzle Scale-up PGX Impregnation Built PGX Pilot Plant BioFoodTech Collaboration CF Tech Collaboration MIT Collaboration McMaster Collaboration 2017 Dr. Seifried got AITF Fellowship POGA-CAAP Funding NSERC Strategic Grant AI-Bio PGX Demo Plant Grant AI-Bio Food Innovation Grant IRAP Funding

38 38 Pressurized Gax expansion Technology (PGX) Update PGX is poised to be a delivery system platform Successfully completed impregnation of bioactive using PGX Technology Pilot Scale Facility completed and custom designed equipment installed - Proprietary equipment will enable production of sufficient material for: development studies sale-able product for niche applications Collaborative Research with the University of Alberta to further investigate PGX drying and impregnation of various biopolymers - Grant of $332K obtained from NSERC (CRD Grant)

39 39 Formation of Expert PGX Team

40 40 New Bio-Processing Facility Leduc Edmonton

41 41 New Bio-Processing Facility R&D Pilot Scale Capability Commercial Production New 30,000 sq. ft. GMP Bio-processing Extraction Facility in Edmonton!

42 42 Financial Profile TSX-V: CZO Stock Ticker $50M Market capitalization as of May 28, M Common shares outstanding $12,926,000 Total sales for the full year 2017

43 43 Financial Performance Delivering Consistent Solid Results Year after Year Sales, ($M) Income (loss) from operations, ($M)

44 44 Future Growth Marked by Potential to Address Significant Market Opportunities Functional Food $240B (2012) Cosmetic Injectables $686M (2010) +7.4% Cosmetic Skincare $4.1B (2010) +6.2% Antiinflammatory $57.8B (2010) +5.8% Functional Drink $17B (2010) Diabetes Tx $21.4B (2008) +14.2%

45 45 Investment Highlights Revenue generating, de-risked business model supports near-term and future growth Strategy focused on strengthening base cosmeceuticals business and expanding into multiple growth markets Two value-driving active ingredients used in multiple household name cosmetics and personal care products Acquisition of Juvente DC represents an opportunity for vertical integration that enables our entry into a high-end market valued at $5 billion Pivoting into biopharmaceutical company with multiple near-term value-driving opportunities expected to unlock significant shareholder value Exploring up listing to a National Exchange outside of Canada

46 46 Ceapro s Progression Acquire: - Vexco Health Inc. - Minerva Animal Health - Canamino Inc. Moved Processing to FPDC Moved Processing to ABPI Initiated PGX Scale-up Initiated Malting Technology Scale-up UofA Licensing Agreement Acquire JUVENTE Developed Active Ingredient for Cosmetic & Animal Care Built New Facility New Business Model Sales Sales Sales Sales Sales Sales Sales Sales Sales $0.4M $0.8M $1.6M $2.4M $3.3M $4.0M $5.6M $5.1M $8.9M 2016 Sales $13.7M Raised $20M Ceapro Inc. listed on TSX (CZO) Portfolio Realignment Strategic Direction Distribution Agreement Raised $10M CZO Uplisting?

47 47 Ceapro is Ready for the Next Step!

48 Ceapro Team Thank you!

49 Enhancing Life Through Nature TSX: CZO