Expanding Global Food Supply by Significantly Increasing Crop Yields Using Patented Gene Technology

Transcription

1 Expanding Global Food Supply by Significantly Increasing Crop Yields Using Patented Gene Technology Jerry Feitelson, Ph.D., Co-Founder & CEO (858)

2 THE PROBLEM YIELD: Highest value trait to farmers Conventional breeding reaching yield limits Tens of $Billions in crop loss caused by: Post-harvest senescence Disease (bacterial and fungal pathogens) Stress (drought, low nutrients, salt, cold, heat) 2

3 OUR DISRUPTIVE SOLUTION License or co-develop proprietary Genome Edited seeds with innovative seed companies in forage, row or specialty crops having ULTRA HIGH YIELD & STRESS RESISTANCE. -- Avoid GMO controversies -- 3

4 How? Genetically modify a biological switch The eif-5a/dhs hypusination pathway promotes either cell growth/division or cell death (apoptosis) Cell Growth/ Division Lysine eif-5a + DHS Hypusine eif-5a Cell Apoptosis Increased biomass and seed yield Enhanced tolerance to stress & disease 4

5 Market Opportunity 2014 Crop (not Seed) Production: $23.5 Billion $9.0 $8.0 33% 2014 U.S. Production (Bil) $7.0 Bil $6.0 $5.0 $4.0 $3.0 82% % GM Adoption <5% <5% $2.0 $1.0 $0.0 95% 87% <5% 5

6 Strong IP Portfolio Broad Coverage 16 issued US Patents + 5 published US Patent Applications Foreign counterparts in several countries New applications for genome editing of DHS CRISPR license from Benson Hill Biosystems Matter & Methods claims eif-5a overexpression has important phenotypes Higher seed & biomass yields Tolerance to abiotic stresses DHS knock-downs have clear phenotypes Delayed senescence Larger leaves Higher seed yields Stress tolerance 6

7 Business Model / Sales 1. Co-development started with 3 rd largest alfalfa seed company 2. License or Co-develop with seed companies in 12 other targeted crops (@ 2-3/yr) 3 crops between Seed & Series A rounds 3. Generate revenue from: Licensees: Tech Access Fees ($50-150K) Benchmark Payments ($2Mil) Royalties (5%) Co-Development Partners: Sales of partially-owned seeds (25 33%) $ Partner License / Co-Develop Generate Revenue 7

8 Competition Major Ag Biotech / Ag Chem Companies Small- & Mid-size Companies Agribody Technologies EvoGene Arcadia Ceres Kapyon- ZeaKal Yield10 Kaiima Improved Yield X X X X X X X Biotic Stress Tolerance Bacteria, Fungi Nematode, Fungi, Insect, Aphids Fungi Abiotic Stress Tolerance Drought, Crowding, Low Nutrient Drought Drought, Nitrogen Efficiency, Salt Drought, Poor Soils Drought Enhanced Shelf Life Tomato, Banana, Carnation TILLING in Tomato Public, VC or Private Start-Up NYSE NASDAQ NASDAQ VC VC / NASDAQ VC Major Companies GM traits for increasing yields indirect: insect R / herbicide T Extensive R&D on pathogen and abiotic stress resistance Potential acquirer Single transgenes Rare to boost yields >10% in greenhouse Few successful field trials Higher photosynthetic efficiency / C3 C4 Candidates for stress T 8

9 ATI Executive Team Jerry Feitelson, Ph.D. John Thompson, Ph.D. Jim Goode Paul Kreutz CEO / Co-Founder Chief Scientist / Co-Founder Acting CFO Corporate Counsel >30 years R&D, IP, Licensing & Bus Dev experience Managed $10Mil royalties; Negotiated $7Mil license Patented B.t. genes/proteins lead to $850Mil valuation B.S. (MIT), Ph.D. (Stanford) U. of Waterloo (Professor Emeritus, Associate VP) Invented eif-5a/dhs technology B.S. (Toronto), Ph.D. (Alberta), Fellow of Royal Society of Canada 35 years managing financial/ admin functions of high-tech, biotech and start-ups Raised >$100Mil MBA (UCLA), CPA (Arthur Young) Represented many VC firms Counsels & helps structure growth-oriented entrepreneurial enterprises B.A. (Yale), LL.B. (Stanford) 99

10 ATI Consultants / Advisors Alan Bennett, Ph.D. Craig Williams Jerry Caulder, Ph.D. Vaughn Smider, M.D., Ph.D. Chair, SAB Field Trials / Regulatory Advisor Advisor UC-Davis (Distinguished Professor of Plant Science) Transformed/characterized elite alfalfa with eif-5a Runs advanced genetics lab B.S. (UC-Davis), Ph.D. (Cornell) 25 years experience managing seed companies Knowledgeable in seed business operations, regulatory affairs, field trials, M&A due diligence B.S. (Bradley U.) Known as the Father of Agricultural Biotechnology 15 years with Monsanto; as CEO, built $1.2Bil valuation Lead 2 other companies, Chair of Athenix, sold for $400Mil. Founded Finistere Ventures B.S. (SE Missouri State U.), Ph.D. (U. Missouri) CSO of Sevion Therapeutics, Founder/President of precursor company, Fabrus. Associate Professor at The Scripps Research Institute Leadership Council for American Cancer Society B.A (Hiram College), M.D. & Ph.D. (Stanford U.) 10

11 Opportunity for the Investor Seed round up to $950K in form of Convertible Notes with very favorable terms: Convertible into Series A round at 35% conversion discounts Annual 7% simple interest The Yield Lab & Dr. Feitelson lead investors Conversion pre-money valuation safeguards Goal for Preferred Stock Series A round of $3Mil (est.) Essentially plain vanilla Down round anti-dilution & participating upon dissolution 11

12 Exit Strategy Acquisition expected in 5-6 years Strategic Trade Sale Every license/jv deal (forage, row, specialty seed company) could generate a buyer Private Equity Trait consolidation opportunities for yield improvement Goal: Raise $1M Seed + $3-5M Series A over 2 yrs >$60M Exit (15x cash-on-cash return) Successful ag biotech platform exits: AgriQuest ($450M Sale/Bayer) DeVGeN ($523M Sale/Syngenta) Athenix ($400M Sale/Bayer) Divergence ($71M Sale/Monsanto) Ceres ($344M IPO) Evogene ($389M IPO) 12

13 Transgenic technology attractive to major players Corn & Soy Alfalfa CRISPR Potatoes Bananas 13

14 Summary Join ATI in building value by licensing & co-developing ultra-high yield, stress-resistant crops with established seed companies CEO & Management Team Ag biotech entrepreneurs experienced, resourceful, ethical Proof of Efficacy Broad IP Started alfalfa co-development project & potato license License to Genome Editing & rapid commercialization path 14

15 THANK YOU! Jerry Feitelson, Ph.D., Co-Founder & CEO (858)

16 CONTROL AGRIBODY FIELD TRIAL SUCCESS: ALFALFA 3 rd most valuable crop >$8B hay market in U.S. Alfalfa breeding challenge is improvement of both forage yield and quality Often inversely correlated Low yearly gains: < % Elite varieties of alfalfa developed that constitutively overexpressed eif-5a3 Over 2 years of field trials averaged 20 45% higher yields Maintained high forage quality Manuscript submitted 16

17 Commercial Seeds Market 2014 Production Data: $45 Billion Est. CAGR: 1.5% Non Biotech Global $29.3 Bil (65%) US Biotech $10.4 Bil (23%) Agribody JV potential, $0.9 Bil (2%) Developing World Biotech $4.4 Bil (10%) 17

18 MILLIONS (in thousands) Transgenic License $50 $50 $150 $500 $400 $650 $1,700 $2,450 Preliminary Estimated Revenues Genome Editing License $- $300 $450 $1,000 $1,950 $6,700 $8,000 $11,700 Transgenic JV $- $- $- $- $- $- $- $1,500 Genome Editing JV $- $- $- $- $- $1,500 $6,300 $15,000 TOTALS $ 50 $350 $600 $1,500 $2,350 $8,850 $16,000 $30,650 $35 $30 $25 $20 $15 $10 $5 $- Transgenic License Estimated Revenues Genome Editing License Transgenic JV Genome Editing JV

19 Use of Seed Convertible Note Funds (Up to $950K) 1. Establish GE/GM licenses with leading alfalfa seed company 2. Maintain / Expand IP portfolio 3. Support research in 2 crops for GE patent examples 4. License technology for 3 other crops selected from: Potato Peanut Beans Canola Cotton Corn Soy Rice Wheat Sugarbeet Sorghum Flowers 5. Working capital 19

20 Many Ag/Chemical Corporate & CVC Deals Acquisition or Investment

21 Jerry Feitelson, Ph.D. CEO Agribody Technologies, Inc. BIOTECHNOLOGY COLLABORATION NETWORKS STRATEGIC PLANNING LICENSING/JVs INTELLECTUAL PROPERTY TECHNOLOGY TRANSFER Senior-level R&D and business development executive, with extensive entrepreneurial, industrial and academic experience >30 years of industrial research experience in drug discovery, agricultural biotechnology, proteomics, IP/marketing and biofuels Technical business plan writing Led teams that discovered and developed commercially important families of pesticidal proteins, proteomics solutions, advanced analytical chemistry solutions, and biofuel germplasm Excellent networker set up several collaboration networks in different scientific fields Skilled communicator Productive inventor 14 issued and 9 pending U.S. patents 40 peer-reviewed publications & numerous invited lectures Very customer-focused, strong relationship builder. Akkadix GBF GenWay Beckman Coulter Global Clean Energy Biofuels Agribody Ag Biotech M.I.T. (B.S.) Stanford (Ph.D.) J.I.I. UK AmCy & Rutgers U. Steptomyces Genetics Mycogen Agricultural Biotech Proteomics IP/Marketing