BVT s Path to Commercialization Web Investor Call June 22, 2017

Transcription

1 BVT s Path to Commercialization Web Investor Call June 22, 2017 TSXV:BEE Ashish Malik, CEO 1

2 Agenda Bee Vectoring Technology (TSX.V BEE) Ashish Malik President and CEO Big-Ag experience: Bayer, Syngenta Executive team AgraQuest (acquired by Bayer in 2012 for $425M + milestones) 10 yrs experience with biologicals 1. Context 2. Commercial Demonstrations 3. Path to Commercialization 4. Road Ahead Director of BPIA (Biological Products Industry Alliance) 2

3 Forward-Looking Statement This presentation contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from Bee Vectoring Technology ( BeeVT, or, the Company ) expectations and projections. The TSX-V has neither approved nor disapproved the information contained in this presentation. Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forwardlooking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development of biotechnology related products, product obsolescence, the uncertainties involved in patent defense and complexities and timelines associated with agriculture related product approvals in multiple jurisdictions., the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements. 3

4 Feeding the Planet is Becoming Difficult Reducing arable land World population ~10bill by 2050 * (0.36 -> 0.2 has/per person in last 50 yrs *) Changing consumptions (higher protein diet) Yields under pressure climate change, pests Regulators, consumers demanding reduced impact * FAO, United Nations Crop Production Needs to Double by 2050 in a RESPONSIBLE Way 4

5 BVT: A Novel Disruptive Crop Production Tool BVT System Better Crops Higher yields Better quality Longer shelf-life Less chemicals Less water Less machinery Reduced Impact Bee health All-Natural System: Pollination + Crop Protection + Crop Enhancement 5

6 Business Strategy 2017/2018 Value Statement Providing growers with new sustainable production tools to increase the profitability and marketability of their crops and allow them to meet the increasing demands from their customers, the consumers and other stakeholders Objectives 1. Commercialize Gain grower acceptance and convert technology promise into revenue 2. Selective Portfolio Expansion Increase accessible market; new crops, new countries, new value propositions Actions Focus on strawberries in Eastern USA Successful grower demos 2017/18 US Regulatory approval H Revenue by 2018 Validate additional crops Honeybee box prototype 2017 Additional regulatory submissions in N. America EU regulatory plan 2017 Evaluate foliar and seed treatment 6

7 2017 Strawberry Demonstrations: Plant City, FL Objective: Select growers: 1. To show value of BVT system to key growers and create demand in key market 2. Validate BVT system scales up to real world commercial sized field 3. Refine value proposition 1. That had shown an interest in the BVT system and see the possibilities on their farms 2. That are large and early adopters (other farmers follow) Hillsborough County, FL: Winter strawberry capital of North America (Dec Apr) 20 million flats of strawberries from 11,000 acres per year 15 percent of the US strawberries and virtually all the berries grown during the winter. 3 growers chosen Manage ~30% of strawberry acres in Hillsborough County, FL 7

8 2017 Strawberry Demonstrations: Setup Jaymar Produce, Wimauma Florida 40 acre production field Plot 1: 30 acres chemical fungicides only (out of range for bees) Sample Plot 3: 5 acres BVT + 50% chemical fungicides Plot 2: 5 acres BVT + chemical fungicides Sample Sample BVT system: 21 Hives Samples taken from 3 plots 4 replicates per sample area Evaluated for disease control (botrytis grey mold) and yield 8

9 2017 Strawberry Demonstrations: Results Results: 1. BVT system produced better yields (up to +29%) than chemical only 40 Jaymar Farms 3 plots: (1) Chem-only; (2) BVT+ Chem; (3) BVT + 50% Chem 2. Yields were better whether there was botrytis disease incidence or not 3. Plot with BVT together with only 50% chemicals produced highest yields in demo where this was tested (2) and (3) had better control of botrytis (3% incidence vs 13%) (3) had highest marketable yield +26% vs. (1) (2) had +6% higher marketable yield vs (1) 20 acres 3 plots: (1) Chem-only; (2) BVT+ Chem; (3) BVT + Chem 10 acres 2 plots: (1) Chem-only; (2) BVT+ Chem Low level of botrytis incidence in all plots (2) and (3) produced +6 and +24% higher yield than (1) Plants in (2) and (3) averaged 11% more berries per plant than (1) Low level of botrytis incidence in all plots (2) produced +29 higher yield than (1) 9

10 Case Study: Value Proposition in Strawberries Average strawberry grower in Florida in a season Per acre Produces 3,000 4,000 flats per acre (8lb per flat) 24,000 32,000 lbs Earns Price averages $1.15 / lb over the season (higher at start, and lower at end) US $28,000 - $37,000 Uses US $1,400 total chemical pesticides pre acre US $400 chemical fungicides BVT technology can improve the farming operation by Cost savings 50% reduction in chemical fungicides US $200 savings Higher yield 6% to 29% observed; assume 10% average US $2,800 - $3,700 more revenue Total value US $3,000 - $4,000 Intangibles Marketability as low chem Longer shelf life (benefits packer) Worker safety 10

11 Commercialization Steps for Strawberries, FL 1. Commercialize: Gain grower acceptance and convert technology promise into revenue Drive commercialization in next 6 mos to capture opportunity now validated Successful commercial demos with key strawberry growers Distributor selection Sales and Marketing resources Sales commitments Additional commercial demos with key strawberry growers EPA registration Validates the value proposition and fit in commercial conditions Local partner with access to grower acres will accelerate adoption Headcount and advertising and promotion activities to create awareness and demand Gain commitments from growers who did demos Strengthen demand among additional growers Grants BVT the license to sell as a bio-pesticide Clear path to capture opportunity 11

12 Scalable, > $2 Bill On-Farm Market Potential 2. Selective Portfolio Expansion: Increase accessible market; new crops, new countries, new value propositions New Countries Additional Crops Pollinator Clonostachys Rosea via BVT bee systems $1B+ market size 1 st $ Honeybees in addition to Bumblebees 3 rd Party Bio-controls via BVT bee systems $1B+ market size Application method Sprayable and Seed Treatments Target pest Control Multiple Pests by Stacking Several Control Agents In-spensing Clonostachys Rosea via foliar or seed treatments $200M+ market size Additional Value Can be Extracted Beyond the Farm 12

13 BVT Company Progress COMMERCIALIZE Secure regulatory approval in US Technology Validated Launch in pilot crops Refine value proposition Develop new crops RESEARCH Discovery and research of strains Design delivery system Small scale trials Submit patents DEVELOPMENT Field trials with universities and key influencers EXPANSION Additional crops International registrations New uses Licensing agreements with 3 rd parties In Commercialization Phase Market Expansions Started Test & adapt system for field conditions Submit for regulatory approval Partnerships Being Established BVT is De-Risked with Considerable Upside as it Moves Towards Revenue and Market Expansion 13

14 BVT: Building a Global Agri-Business BVT: A global provider of disruptive crop production tools that increase grower profitability while reducing reliance on chemicals, water and machinery Prelaunch complete go to market plan and do commercial scale demos US EPA registration Revenue in strawberries, FL Commercial partnerships Europe regulatory submission Expansion into other crops in US Full year of revenue Strategic partnerships Honeybee system launch (eg almonds, sunflowers) California launch Launch in Europe Launch in Mexico Launch in Canada 14

15 BEE.V: An Attractive Ag-Tech Company Large, multi-billion dollar market opportunity Multiple revenue stream potential Proprietary system simple and effective Platform that is scalable Delivering on milestones Experience and proven team On the verge of capitalizing on years of research Contact Info Bee Vectoring Technology Toronto TSX.V: BEE.V US OTC: BEVVF Frankfurt Börse: 1UR1 General: Investors: Ashish Malik President & CEO Significantly de-risking the company by nearing commercialization opportunity Final steps towards commercialization 15