BioNeutra Investor Presentation (Winter 2016)

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INVESTOR PRESENTATION WINTER | 2016 www.bioneutra.ca TSX.V: BGA

Transcript of BioNeutra Investor Presentation (Winter 2016)

Page 1: BioNeutra Investor Presentation (Winter 2016)

INVESTOR PRESENTATION

WINTER | 2016

www.bioneutra.ca

TSX.V: BGA

Page 2: BioNeutra Investor Presentation (Winter 2016)

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

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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

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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)

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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

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BioNeutra - Confidential

Corporate Structure

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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

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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

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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

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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

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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

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Emerging Markets Driving Demand

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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

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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

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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

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VitaFiber™ Sales Revenue

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Revenue

Projected Revenue

20% Anticipate

Growth per year

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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:

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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

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BioNeutra - Confidential

2014 Media Coverage

BioNeutra was

featured in many

articles and online

stories

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BioNeutra - Confidential

BioNeutra in the Spotlight

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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

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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

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TSX.V

Listing

(Dec. 9)

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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

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Why Invest in BioNeutra

BioNeutra - Confidential

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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

E: [email protected]

[email protected]