BioNeutra Investor Presentation (Winter 2016)
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Transcript of BioNeutra Investor Presentation (Winter 2016)
INVESTOR PRESENTATION
WINTER | 2016
www.bioneutra.ca
TSX.V: BGA
BioNeutra - Confidential
In the interest of providing potential investors in BioNeutra Global Corporation (the “Company”) with information regarding the Company’s future
plans and operations, certain statements and graphs throughout the presentation contains “forward-looking statements”. Forward-looking
statements include, but are not limited to, statements (collectively, “statements”) with respect to status of product development, market size,
financing, general and administrative and beyond. You are cautioned not to place undue reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations they are based on will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown, risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur. Although the Company believes that the expectations represented by such forward-
looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the risks and other factors
which could cause results to differ materially from those expressed in the forward-looking statements contained in the presentation include general
economics, business and market conditions; changes in product development; competition; access to future funding (debt and equity); timing and
amount of capital expenditures; cost overruns; and such other risks and uncertainties described from time to time in the reports forwarded to
shareholders. You are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the forward-looking statements contained
in this presentation are made as of the date of this presentation, and the Company does not take any obligations to update publicly or to revise any
of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements
contained in this presentation are expressly qualified by this cautionary statement. The financial information contained herein is unaudited and
should be considered preliminary in nature. This presentation is for general background information purposes only and does not constitute an offer to
sell or a solicitation to buy the securities referred to herein. Prospective purchasers are responsible for their own due diligence investigation in
respect of any investment in the BioNeutra Global Corporation.
Forward Looking Statement
www.bioneutra.ca 2 2016
BioNeutra - Confidential
Highlights
BioNeutra (TSX.V: BGA) researches, develops
and commercializes food ingredients for
NUTRACEUTICAL & MAINSTREAM
FOOD PRODUCTS. BioNeutra has a robust
product pipeline to service a rapidly growing
FUNCTIONAL FOODS INDUSTRY
Their innovative product
VitaFiber™ is a low caloric
nutritive sweetener with dietary
fiber and prebiotic functionalities
Went public in November
2014
$15M in sales
for 2015
and forecast 20% growth in 2016
Very little competition, and the only company to get IMO approvals in North America and Europe
$4.1M
www.bioneutra.ca 3 2016
in treasury
Dr. Jianhua Zhu, BioNeutra
Global CEO was recently named
a finalist in the 2015 Ernst & Young
Entrepreneur of the Year Awards,
Prairie Division for developing,
manufacturing and marketing
value-added agricultural products
BioNeutra - Confidential
Symbol TSX.V: BGA
52 Week High/Low $0.60 – $0.40
Issued and Outstanding 45,819,787
Warrants and Options 6,200,000
Fully Diluted 44,280,204
Market Capitalization
$27,491,872
Cash in Treasury $4,186,822
As of June 30, 2015
Capital Structure (TSX.V: BGA)
www.bioneutra.ca 4 2016
BioNeutra - Confidential
BioNeutra Global Corporation
BioNeutra researches,
develops and
commercializes food
ingredients for
nutraceutical and
mainstream food products
BioNeutra provides
consistent, quality
ingredients for formulators
and manufacturers
and focuses on
oligosaccharides, which
are carbohydrates found
naturally in many plants
BioNeutra's patented
process naturally
transforms starch
molecules from local
agriculture cereal crops
(such as corn, wheat,
barley, potato, and
tapioca) into the
functional health
molecules of isomalto-
oligosaccharide(IMO)
The resulting product,
VitaFiber™, provides
dietary fiber, prebiotic
function and is a low
caloric nutritive sweetener
The only company to
get approvals in North
America and Europe
for IMO
BioNeutra partners
with market leading
companies to provide
their consumers with
options for healthy
nutrition
www.bioneutra.ca 5 2016
BioNeutra - Confidential
Corporate Structure
www.bioneutra.ca 6 2016
BioNeutra International
Patents, IP, Since 2003
BioNeutra North America
Operation, Since 2003
BioNeutra Alberta
Plant Production 2015
BioNeutra Offshore
Plants Production,
Since 2010
BioNeutra Global Corporation
November 5, 2014
Toronto CNSX: BGA
December 9, 2015
TSX.V Listing
Business Development,
Marketing and Sales, Commercial Production,
Research and Development
BioNeutra - Confidential
Bill Smith | Senior VP & Chairman of BGA Mr. Smith owned and operated one of the largest independent tire operations in Western Canada for 30 years, with sales of $95 million. He was Mayor of
Edmonton from 1995 to 2005. He currently serves on Imperial Equities Board and was Chairman of Petrowest Corporation, both publicly traded
companies. Past Boards include, University of Alberta Hospital, Newman Theological College, Capital Health Authority, Edmonton Northlands, Economic
Development, Alberta Capital Region Alliance and many volunteer Boards. Bill is also Honorary Consul to Rwanda and Honorary Colonel 20th Field Artillery.
He brings expert marketing and business strategy from his work in the public and private sectors, including his 10 years as Mayor of Canada’s fifth largest
city. Bill has international political experience with Taiwan, Korea, China and Germany.
Jianhua Zhu | President /CEO
In 2003, Dr. Zhu founded BioNeutra to research, develop and commercialize ingredients for functional and health foods, as well as nutraceuticals. The core
business is centered on the patented production of VitaFiber™ IMO (isomalto-oligosaccharides). Prior to that, Dr. Zhu worked as a senior scientist in
carbohydrate chemistry at CV Technologies, where he was involved in the functional and health foods development of products such as Cold-FX. Later, Dr.
Zhu was appointed as Senior Scientist at an Edmonton-based biotech company, KS Avicenna that focused on the production of clinical trial
biopharmaceuticals for brain cancer treatment. Dr. Zhu received his Ph. D. from South China University of Technology. He did his postdoctoral research at
the University of Alberta. He also worked as a Professor and a visiting professor at South China University of Technology (China) and Yokohama National
University (Japan), respectively.
Dr. M. Hassan Qureshi | Ph.D., Senior VP Science and Regulatory Affairs
Dr. Qureshi received his doctorate degree in Biological Sciences and since then has had a 20 year career in Biochemistry and therapeutic scientific
research. In 2003, he co-founded BioNeutra North America Inc. (BNA) and has been with the company ever since. Currently, he’s working as a senior Vice-
President of Scientific and Regulatory Affairs for BNA and also in charge of Quality Control, Quality Assurance and R&D.
Barry Charnay | VP Corporate Development
Mr. Charnay has over 30 years of experience in the agribusiness, manufacturing, food and beverage and energy industries. His experience spans the globe
from Canada, USA, Mexico, South America, Asia-Pacific, China, Europe, Eastern Europe, the Middle East and North and South Africa. Barry provides expert
advice on strategic planning, investment and operations to investors, owners and financiers in private and public enterprises, including government agencies,
for effective business development, investment due diligence, turn-around management, enterprise workouts and restructuring. He leads and directs
BioNeutra’s domestic and international manufacturing, marketing and sales interests.
Raymond Yong | Chief Financial Officer
Mr. Yong has been the Chief Financial Officer for two BioNeutra companies since July 2009. Previously, he was the Accountant for Cypress Food and
Beverage Ltd. in Edmonton, from 2002 to 2009. He has held senior positions at various Edmonton based companies, most notably as Controller of Burlington
Arts Ltd. from 1984 to 1994 and as Accounting Supervisor at Brunei Shell Petroleum Company Ltd. from 1972 to 1981. Mr. Yong is active in the Edmonton
community and has sat on the Board of many local organizations, such as the Lansdowne Chinese Baptist Church and the West Edmonton Chinese Christian
Church Society. Mr. Yong studied at the Northern Alberta Institute of Technology in Edmonton, Alberta where he earned his Advanced Accounting Certificate.
Senior Management Team
www.bioneutra.ca 7 2016
BioNeutra - Confidential
• Baked goods and
baking mixes
• Beverages and juices
• Breakfast cereals
• Confectionary
• Dairy products
(including frozen diary
desserts and mixes)
• Jams and jellies
• Meat products
• Meal replacement
• Milk and milk products
• Sauces, puddings
and dressings
• Snack foods
• Sugar substitutes
and soft/hard candies
• Syrups and toppings
What it is
Key Health Benefits
Commercial Application
Global Approvals
• A mixture of a number
of short chain
carbohydrates
• High percentage of
alpha (1-6) glycosidic
bonds which is digestion
resistant
• BioNeutra has spent
10 years optimizing the
manufacturing process
to create the best
possible product
Key health benefits
include:
• Soluble dietary fiber
• Helps bolster beneficial
intestinal bacteria
• Low caloric value
• Low glycemic response
• Satiety and bulking
effects
• Assists in maintaining
healthy cholesterol
levels
• Improves mineral
absorption
• Prevent constipation
• Improves overall
digestive health
www.bioneutra.ca 8 2016
BioNeutra - Confidential
Patented Enzymatic Transformation Process
Fermentation Process
Raw Material: Starch
(from Wheat, Potato, Corn, Tapioca….)
Functional Food Ingredient
Novel Food Ingredient
VitaFiberTM IMO
Patented Manufacturing Process
Products: Isomalto-oligosaccharide
Health sweetener
Dietary soluble fiber
Prebiotic ingredient
www.bioneutra.ca 9 2016
BioNeutra - Confidential
(VitaFiberTM)
Non-digestible and slowly digested foods or nutrients in upper digestive system:
mouth, stomach and small intestine
A prebiotic because it is consumed selectively by specific bacteria in the
intestine (colon): recognized as “benefit” bacteria
Colon
IMO and Prebiotics
www.bioneutra.ca 10 2016
BioNeutra - Confidential
Emerging Markets Driving Demand
www.bioneutra.ca 11 2016
BioNeutra - Confidential
Positioned to grow
and drive shareholder
value
Focused on emerging markets as a strategic offset to developed market
issues
Market and corporate alliances
for overall geographic benefits
Outsourcing of product
manufacturing versus in-house
company manufacturing
New product development w/ IP rights for global to
local markets
Aggressive Growth Strategy
www.bioneutra.ca 12 2016
BioNeutra - Confidential
Lead
• Nutritional bars • Meal replacements
Growth
• Beverages
• Baking
• Dairy applications
Emerging
• Calorie reduction
• Global markets such as:
• Middle East
• Latin America
• Africa
• Eastern Europe
• Asia
VitaFiber™ Target Markets
www.bioneutra.ca 13 2016
BioNeutra - Confidential
VitaFiberTM Inulin FOS
Raw Material Starch Chicory Root Inulin, Sucrose
Tolerability (g/day) 45 15 15
Calories (cal/g) 2.0 1.2 1.5
pH Stability 2-9 4-8 4-8
Natural
Sweetness 60% <10% 30%
Comparison to Other Products
www.bioneutra.ca 14 2016
BioNeutra - Confidential
VitaFiber™ Sales Revenue
www.bioneutra.ca 15 2016
Revenue
Projected Revenue
20% Anticipate
Growth per year
BioNeutra - Confidential
Amazon.com Sales
Launched on Amazon.com March 3, 2015
VitaFiber™
sugar
(powder)
sweetener
& basic
syrup
First 3 weeks
700 UNITS SOLD
More than
400,000 views on
First reviews below:
www.bioneutra.ca 16 2016
BioNeutra - Confidential
CURRENT POWDER AND SYRUP
PRODUCTS (NON-GMO)
• VitaFiberTM – from corn starch
• VitaFiberTM – from Tapioca starch
• Organic Tapioca (August 2015)
− Powder and Syrup
Product Pipeline
PIPELINE (ESTIMATED)
• Sweet VitaFiberTM (2015/16)
− 100% as sweet as sugar, an all natural
blended product
− In development
www.bioneutra.ca 17 2016
BioNeutra - Confidential
2014 Media Coverage
BioNeutra was
featured in many
articles and online
stories
www.bioneutra.ca 18 2016
BioNeutra - Confidential
BioNeutra in the Spotlight
www.bioneutra.ca 19 2016
BioNeutra was featured
in the Edmonton Journal
August 23, 2015
http://www.edmontonjournal.com/BioNeutra+acquires+building+producti
on+facility/11314076/story.html
Dr. Jianhua Zhu receiving
Earnst & Young Entrepreneur
of the year award, Prairie Division
BioNeutra - Confidential
2006 - 07 2013 2015 2009 - 10 2011 2012 2014 2003 - 05
Company
Established
in Canada
Feasibility
Study &
Patents
Registered
CFIA, FDA
Application
& First
Commercial
Sale in USA
Pilot Plant
Established
in Canada
FDA Expert
Panel Approval
FDA GRAS
approval and
Health Canada
approval
Contract
manufacturer
in Indonesia and
China
Marketing and
sales in North
America
Break Even
(Marketing
and Sales) EFSA approval
in European Union
Public in
Toronto - CNSX
BGA (Nov. 5)
2015:
Commercial
plant setting
up in Alberta
Approval
expected in
Australia/New
Zealand and
India
GFSI
expected
Growth Timeline
www.bioneutra.ca 20 2016
TSX.V
Listing
(Dec. 9)
BioNeutra - Confidential
• Strong growth in revenue and cash flow,
with high profit margins
• Recent acquisition of production facility to ensure
quality control
• Product leadership to support premium price
and growing global demand
• Management team who can execute
www.bioneutra.ca 21 2016
Why Invest in BioNeutra
BioNeutra - Confidential
BioNeutra - Confidential
www.bioneutra.ca 22 2016
Contact
BioNeutra Global Corporation
9608-25 AVE NW
Edmonton, Alberta
T6N 1J4, Canada
T: +1 (780) 466.1481
F: +1 (780) 801.0036
CHF Investor Relations
Cathy Hume or
Stephanie Batcules
T: +1 (416) 868.1079