Enhancing Life Through Nature - Corporate Presentation December 2019 - cloudfront.net
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Enhancing Life Through Nature Corporate Presentation December 2019 TSX-V: CZO; OTCQX: CRPOF www.ceapro.com
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. 2
Corporate Overview Focused on the development and commercialization of active ingredients for healthcare and cosmetic industries leveraging proprietary enabling technologies 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 JuventeDC marks important step in strategic market diversification business plan as an opportunity to get into a high end $5B market as well as an opportunity to be used as delivery system 3
Key Management Gilles Gagnon, M.Sc., MBA Bernhard Seifried, Ph.D. President and Chief Executive Officer Senior Director, Engineering Research & Technologies - Over 30 years of experience in the pharmaceutical industry where - Co inventor of the Company’s proprietary pressurized gas expanded he participated in launching multiple new pharmaceutical products (PGX) Technology - Former CEO of AEterna Zentaris and Vice President, External - Authored and co authored numerous peer reviewed papers in scientific Affairs, for Novartis Pharma Canada Inc. journals and presented in many conferences related to supercritical fluids, nano composites, biotechnology and food engineering Stacy Prefontaine, CPA, CA Chief Financial Officer Jacqueline Eskander, M.Sc. Pharm., Ph.D. - Almost 20 years of global finance and accounting experience in Senior Director, Product Development & Regulatory Affairs public company external financial reporting, corporate tax - Over 20 years of experience specialized in the extraction, purification & compliance & planning, and accounting practices and controls structural elucidation of natural drug substances of plant origin like - Former Principal at Grant Thornton LLP saponins, flavonoids, polyphenolics, gallotannins, ellagitannins and condensed tannins Leoni De Joya, M.Sc. Eng., M.SC. Adm. Vice President, Bioprocessing Business Unit Paul Moquin, Ph.D. - Certified Quality Engineer Director, Scientific Affairs and Business Development - Over 25 years of experience in healthcare industry - Over 10 years at Ceapro as project manager and director of research and development - Authored and co authored numerous peer reviewed papers in scientific journals and presented in many conferences promoting Ceapro’s products 4
Board of Directors Glenn R. Rourke, MBA Chair of the Board - Former Senior Vice President/Managing Director, BMO Financial Group Gilles Gagnon M.Sc., MBA President and Chief Executive Officer Ulrich Kosciessa, Ph.D. - COO of Hong Kong-based SBI Pharma - Former 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 CEO of Waiward Capital John Zupancic, P.Eng. - Former Manager of Supply and Technical Services for the Strathcona Refinery 5
Unique Bioprocessing Expertise Identification, extraction and purification of active compounds from natural sources Create innovative ingredients for the personal care and healthcare industries Two value-driving bioactives at core of base business in cosmeceuticals - Beta glucan - Avenanthramides 6
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 7
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 8
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 9
Cysteinyl Leukotrienes (CysLTs) Release Inhibition CP-Avenanthramide has a Potent Anti-Inflammatory Response 100 % CysLTs Release Inhibition 90 80 70 60 50 40 30 20 10 0 Synthetic CP-Avenanthramide Fluticasone Avenanthramide (Commercial Drug) 10
Base Business: Cosmeceuticals From Field to Formulation Revenue-generating base business in personal care cosmetic market Strategy focused on strengthening and expanding business by continuing to explore and clinically validate new product applications Sells direct and through distribution channels 11
Beta Glucan and Avenanthramides in Multiple Household Name Products Aveeno Coppertone Jergens Dove Lubriderm Burt’s Bees 3M – Nexcare The Body Shop KY Products Philosophy Neutrogena ROC 12
JuventeDC - Proprietary Line of Cosmeceutical Products 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 Received the 2018 Award for Most Innovative Raw Material at Cosmetics 360 Salon in Paris 13
Diversified Business Model Expected to Drive Growth Revenue-Generating Base Business Multiple Growth Opportunities Enabling Cosmeceuticals Nutraceuticals Technologies 14
Multiple High-Value Growth Opportunities Business Model Diversification ✓ Cosmeceuticals Nutraceuticals Enabling Technologies 15
Fueling Our Nutraceuticals Pipeline From Plant to Pill Functional Drink Cholesterol Exercised-Induced Inflammation 16
Avenanthramides: Exercise-Induced Inflammation Collaborating with the University of Minnesota to develop a functional food to alleviate exercise-induced inflammation Positive results from bioavailability and bio-efficacy studies demonstrated a significant reduction of inflammation biomarkers in the blood and provided evidence on immunoregulatory mechanism of action involved in exercise- induced inflammation Positive results presented at 2018 American Society of Nutrition Conference in Boston and in May 2019 at the American Sports Medicine Conference in Orlando, FL confirmed potential of Avenanthramides as an efficacious supplement in food or beverages 17
Beta Glucan Clinical Study: Cholesterol Reducer Oat Beta Glucan Linked to Cholesterol Reduction and/or Reduced Risk of Heart Disease First of the clinical studies being conducted as part of collaboration with the Montreal Heart Institute led by MHI’s Montreal Health Innovations Coordinating Center (MHICC) Multicenter, randomized, double-blind, placebo-controlled clinical trial evaluating high-medium molecular weight beta glucan as an add-on therapy to statins in subjects with hyperlipidemia - Patient dosing commenced Q2 2019 - First clinical trial with a proprietary pharmaceutical grade product in Ceapro’s history - 18-24-month, 264-patient study will compare the efficacy and safety of high-medium molecular weight beta glucan as add-on therapy to statins in subjects with hyperlipidemia (LDL-C level >130 mg/d L (3.37 mmol/L) - Primary efficacy endpoint: change over 12 weeks in LDL-cholesterol - Additional biomarkers will also be evaluated for potential effect on insulin metabolism and other symptoms related to metabolic syndrome 18
Beta Glucan Clinical Study Design: Cholesterol Reducer First set of Subjects Randomization Atrovastatin (10-20mg/d)(or an equivalent dose of another statin) + 1.5g Glucan 88 Subjects (66 Subjects) Matching Placebo (22 Subjects) Atrovastatin (10-20mg/d)(or an equivalent dose Next Set of Subjects Randomization of another statin) + 3g Glucan 88 Subjects (66 Subjects) Matching Placebo (22 Subjects) Atrovastatin (10-20mg/d)(or an equivalent dose Last Set of Subjects of another statin) Randomization + 6g Glucan 88 Subjects (66 Subjects) Matching Placebo (22 Subjects) First set Screening of subjects Next set Last set Treatment Period (12 weeks) F/U Period (up to 1 week) of subjects (2 weeks) of subjects W1 (up to 7 days) W0 W6 (± 5 days) W12 (± 5 days) W14 (± 5 days) 19
Pressurized Gas eXpansion Technology (PGX) PGX is poised to be a delivery system platform Robust intellectual property portfolio with patents now in the U.S., Canada, Europe and India Successfully completed impregnation of bioactives using PGX Technology for improved characteristics Pilot Scale Facility completed, and custom-designed equipment installed - Proprietary equipment enables production of sufficient material for both development studies and saleable product for niche applications - Advanced the Technical Readiness Level (TRL) of PGX technology, reaching demo scale and performed the groundwork necessary to integrate the system in large commercial scale Ongoing projects with University of Alberta to conduct impregnation studies using PGX technology for both small molecules and proteins Ongoing projects with McMaster University for the development of delivery systems using PGX technology 20
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. Results published in peer-reviewed scientific journals Confirmed bioavailability of the new water-soluble chemical complex CoQ10 beta glucan Pure PGX BG iBG: 5.5% CoQ10 on BG Next Steps: Partnering and sales! 21
PGX processing of Oat Beta Glucan (BG) Development of Biopolymers into Bioactive Delivery System Oat β-Glucan → linear polysaccharide PGX processed biopolymers (such as BG) form • Cholesterol Lowering effect – health claim viscosity highly porous morphologies, ideally suited for • High molecular weight (MW) >300kDa tailormade tune-able bioactive delivery systems • Very viscous aqueous solutions at low when impregnated with bioactive: shown here concentrations 1%wt – 300 cP CoQ10-iBG %wt CoQ10 on porous BG matrix Impregnation PGX Drying with CoQ10 200 nm Viscous BG Dry PGX BG Bioactive Delivery System Solution Powder CoQ10 Loaded onto PGX β-Glucan (CoQ10-iBG) 22 22
Morphology: CoQ10 Loaded β-Glucan Powder Particle size of CoQ10: 92 nm (35-160 nm) 200 nm (Liu et al., 2018, Food Research International, 106:354-362) 23
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 Stability of Ceapro’s iBG still maintained after 12 months 24
% Absorption Kinetics of CoQ10 Formulations Food CoQ in Triolen 0.8 3% IBG-CoQ 8% IBG-CoQ Absorption (ug/mg/hr) 20% CoQ-Commercial Cylodextrin 0.6 0.4 0.2 0.0 25
PGX Potential We know PGX works for β-glucan but… …does it behave similarly with other polysaccharides? Gum Arabic Alginate 26
We Know PGX Works for β-Glucan But… Does it behave similarly with other polysaccharides? (gum arabic, alginate) Can it be applied to other classes of biopolymers? (soy protein, peptides, lysozyme) Can the PGX processed biopolymers be loaded with a bioactive? 27
Aqueous Dispersion GA + CoQ10 PGX 1 PGX 2 Commercial PGX 3 PGX 1 PGX 2 Commercial PGX 3 PGX 1 PGX 2 Commercial PGX 3 After 30 days CoQ10 was still dispersed! 28
Comparison of Properties Particle Size Soy Protein, Lysozyme Peptides Gum Arabic, β-glucan Alginate Tens of nm Hundreds of nm µm Tens of µm Hundreds of µm 29
Comparison of Properties 0.2 Soy Protein Bulk Density (g/mL) Particle Size Gum Arabic 0.15 Alginate Soy Protein, Peptides Lysozyme 0.1 0.05 Peptides 0 0 50 100 150 200 250 300 Surface Area (m2/g) Gum Arabic, β-glucan Alginate Tens of nm Hundreds of nm µm Tens of µm Hundreds of µm 30
Ceapro PGX Scale-Up Technology U of A Licensed the Extended the U of A Evaluation Collaboration PGX Patent PGX Patent Collaboration Agreement with Functional from U of A U of A License NSERC CRD U of A Drink PGX Nozzle Scale-up PGX Impregnation Built PGX Pilot Plant 2010 2011 2012 2013 2014 2015 2016 2017 BioFoodTech CF Tech MIT McMaster Collaboration Collaboration Collaboration Collaboration Dr. Seifried NSERC AI-Bio PGX AI-Bio Food POGA-CAAP IRAP got AITF Strategic Demo Plant Innovation Funding Funding Fellowship Grant Grant Grant 31
PGX Technology: A Versatile Processing Platform Tailor-made & Tuneable Bioactive Delivery Systems Generate open-porous powders, granules and fibers Tailor-made bioactive delivery Single polymer Multiple polymers Soluble or non-soluble system polymers Biodegradable polymers: Physiological Pills Generate Tuneable properties: Impregnate Capsules Beta Glucan fast or release profile Alginate pH dependant Fast with & Chitosan mucoadhesive slow Dissolving Starch dissolving bioactives improved Strips Cholesterol bioavailability Pectin lowering carriers Face Masks CNC 32
Generation of Oral Thin Films and Fast Dissolving Strips Generate Non-Woven Highly Porous Strips Open-porous, fast dissolving strips Cut to size : 2x3 cm >100m2/gram PGX Sodium Alginate Fibers Roller Press to Sheets 0.05 gram/strip 33
Generation of Oral Thin Films and Fast Dissolving Strips Generate Non-Woven Highly Porous Strips PGX Alginate Scalebar: 200 nm 34
New Bio-Processing Facility R&D Pilot Scale Capability Commercial Production New 30,000 sq. ft. GMP Bio- processing Extraction Facility in Edmonton, Alberta, Canada 35
Ceapro’s Progression Acquired: Initiated Moved Moved U of A - Vexco Health Inc. Initiated Acquired Processing Processing Malting - Minerva Animal Health PGX Licensing JUVENTE to FPDC to ABPI Technology - Canamino Inc. Scale-up Agreement Scale-up New Business Developed Active Ingredient for Cosmetic & Animal Care Built New Facility Model 1995 1998 2001 2004 2007 2010 2013 2016 Sales 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 $13.7M Raised Ceapro Inc. listed Portfolio Strategic Distribution Raised CZO $20M on TSX (CZO) Realignment Direction Agreement $10M Uplisting? 36
Ceapro’s Current Business Processing Technologies Ethanol Fractionation Process De-Risked Base Business CP Beta Glucan Oat Oil CP Avenanthramides Commercial Products 37
Ceapro PGX Technology Scale-Up Processing Technologies Ethanol Chromatography Fractionation Purification & Process Malting De-Risked Base Business CP Beta Glucan Oat Oil CP Avenanthramides Commercial Products 38
Ceapro PGX Technology Scale-Up Processing Technologies Ethanol Chromatography PGX Fractionation Purification & Technology Process Malting De-Risked Base Business CP Beta Glucan Oat Oil CP Avenanthramides Commercial Products 39
Ceapro PGX Technology Scale-Up Processing Technologies Ethanol Chromatography PGX Fractionation Purification & Technology Process Malting De-Risked Base Business Biopharmaceutical Company CP Beta Glucan Oat Oil Avenanthramides Cream, Drink, Pill CP Avenanthramides Commercial Products 40
Ceapro PGX Technology Scale-Up Processing Technologies Ethanol Chromatography PGX iPX Drug Delivery Fractionation Purification & Technology Technology Technology Process Malting De-Risked Base Business Biopharmaceutical Company CP Beta Glucan BG- CoQ10-iBG Oat Oil Chitosan- Cream, Drink Avenanthramides Alginate Mask, Pill Cream, Drink, Pill Thin Films CP Avenanthramides Commercial Products 41
Financial Profile Recently Listed on U.S. Exchange TSX-V: CZO; Stock Ticker OTCQX: CRPOF ~$23M Market capitalization as of December 2, 2019 77.5M Common shares outstanding Total sales for the first nine months of 2019 (28% increase over 2018) $9,159,000 42
Future Growth Marked by Potential to Address Significant Market Opportunities Cosmetic Injectables $686M Functional Cosmetic Food Skincare $240B $5B Anti- Diabetes Inflammatory Rx $57.8B $21.4B Functional Drink $17B 43
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 Extraction Fractionation • Ethanol-based extraction manufacturing technology Enabling • Semi-continuous processes offer the ability to produce commercial scale quantities Technologies Proprietary Drying Technology • Developed to produce pharma grade tablet of phenolic-based compounds • Ability to produce commercial scale quantities 44
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 ✓ JuventeDC represents an opportunity for vertical integration that enables our entry into a high- end market valued at $5 billion as well as an opportunity to act as a delivery system ✓ Unique game changing enabling technologies ✓ Pivoting into biopharmaceutical company with multiple near-term value-driving opportunities expected to unlock significant shareholder value ✓ Recently uplisted to a U.S. National Exchange 45
Enhancing Life Through Nature Corporate Presentation TSX-V: CZO; OTCQX: CRPOF www.ceapro.com
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