Corporate Presentation Cameron Groome, CEO & President January, - - PowerPoint PPT Presentation

Corporate Presentation

Cameron Groome, CEO & President January, 2014

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Forward Looking Statements

This presentation includes certain forward‐looking statements that are based upon current expectations, which involve risks and uncertainties associated with the business of Avivagen

• Inc. and the environment in which the business operates. Any statements contained herein

that are not statements of historical facts may be deemed to be forward‐looking, including those identified by the expressions “will”, "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions. The forward‐looking statements reflect the current expectations of Avivagen Inc. regarding future results or events. These forward‐ looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Avivagen assumes no

• bligation to update the forward‐looking statements, or to update the reasons why actual

results could differ from those reflected in the forward‐looking statements.

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Company Highlights

• New class of immunity‐enhancing natural compounds

– Fully‐oxidized carotenoids – over 600 proprietary actives

• Companion animal applications

– Oximunol™ Chewable Tablets for dogs, detailed to veterinarians – Vivamune™ Health Chews formulation for direct‐to‐consumer sales

• Food animal applications as a non‐antibiotic feed additive

– Enhances growth and feed conversion efficiencies – Protects against bacterial livestock diseases

• Multiple sources for sales growth and measurable milestones

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Technology

• Derived from an exciting discovery

– Shows how well‐known anti‐oxidants really work – Previously un‐recognized natural compounds – Helps to maintain optimal health

• Novel and Proprietary Products

– Extensive patent portfolio – Companion animal products entering market – Food animal field trials with major customers

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Products – OxC‐beta

• First Active ‐ Fully‐Oxidized β‐Carotene

– Carotene is completely transformed by oxidation – Principally into a mix of oxygen co‐polymers – Develops strong biological activity

• Enhances innate cellular immunity
• Dampens adverse inflammatory responses
• Activity in multiple species

– Controlled & reproducible production process

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Companion Animals – Oximunol™

• Oximunol™ Chewable Tablets
• For dogs, in the United States
• Marketed to veterinarians by

Bayer Animal Health

• 150 sales reps, 84,000

veterinarians, 78M dogs

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Companion Animals – Vivamune™

• Vivamune™ Health Chews for

large dogs, smaller dogs and cats

• The Avivagen direct‐to‐consumer

product format – a re‐sealable bag

• f 30 chews.
• Marketing in ”Modern Dog”

magazine, internet, DRTV, etc.

• Available on‐line in the U.S. from

www.vivamunehealth.com

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Testimonials

More energy, no itching, less shedding

Smiley

Therapy Dog

• St. John Ambulance

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Companion Animal Opportunities

• Supplements for Dogs, Cats & Horses
• Science‐based and proprietary ingredients
• Maintenance/protection of general health
• Sustain health of skin & coat at any age
• Sustain mobility & energy at older ages
• Potential to prevent or resolve diseases
• Access to large U.S. pet supplement market

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Food Animals – OxC‐beta Premix

• For inclusion into prepared feeds
• Active at parts‐per‐million levels

and a cost effective alternative to prophylactic use of antibiotics

• Shown to work across species,

including chickens, pigs, cattle and even fish

• A very large market that can be

effectively accessed by Avivagen

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Food Animal Opportunities

• Chickens, pigs, cattle, fin‐fish, shrimp & more
• Science‐based and proprietary ingredients
• Maintenance/protection of general health
• Improving growth rates and feed conversion
• Preventing losses from livestock diseases
• Accessing Asian markets 50x that of Canada
• Customer‐driven field trials starting

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Developments in 2013

• Management Team re‐organized (March 11th)
• Legacy liabilities extinguished (April 12th)
• Oximunol re‐order from Bayer (May 9th)
• First food animal sale in Asia (June 25th)
• U.S. availability of Vivamune (July 9th)
• Delivery of Oximunol re‐order (November13th)
• Refinancing completed (November 14th)
• Shareholder update letter (December 12th)

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Management

• Capable Senior Team:

– C. Groome – CEO & President – C. Boland – CFO – G. Burton – Director, Commercialization Science – J. Daroszewski – Director, Product Devel. & Q.A. – D. Hankinson – Executive Director – J. Nickerson – Director, Product Validation – W. Riley – International Business Development

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CEO Biography

• 23 years of life sciences experience

– 10 years as a ranked sell‐side analyst – 6 years as a leading investment banker – 6 years as EVP of public veterinary Co. – Active advisor & board member – Proven operations, deal making and capital markets capabilities

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Corporate Goals

• Near‐term objectives are as follows:

– Support U.S. launch of Oximunol canine – Launch Vivamune DTC dog & cat SKUs – Extend markets for our companion‐animal SKUs – International marketing of food‐animal SKUs – Achieve sales & business development milestones – Communicate progress to capital markets

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Economic Potential

• Our OxC‐beta supply supports mix of:

– Vivamune revenues to >US$100 million – Oximunol revenues to >US$100 million – OxC‐beta livestock revenues to >US$100 million – Gross margins of 50‐70%, depending on the SKU – Fixed costs of ~C$2.0 million per year – Serious EPS potential

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Company Highlights

• New class of immunity‐enhancing natural compounds

– Fully‐oxidized carotenoids – over 600 proprietary actives

• Companion animal applications

– Oximunol™ Chewable Tablets for Dogs, detailed to veterinarians – Vivamune™ Health Chews formulation for direct‐to‐consumer sales

• Food animal applications as a non‐antibiotic feed additive

– Enhances growth and feed conversion efficiencies – Protects against bacterial livestock diseases

• Multiple sources for sales growth and measurable milestones

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Capital Markets ‐ Summary

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Ticker / Exchange VIV on TSXV Recent Price $0.06 Market Cap $10.0 million 52 week Hi-Low $0.11 -$0.06 Shares outstanding (basic) 168 M Average daily volume (last 3 months) 200,000 shares Share ownership

Insiders: ~10% Pathfinder Asset Management: ~10% Bloom Burton & Co.: <10% Float: ~70%

Burn rate

$170,000/month (excludes any cash flow from products)

Capital Markets ‐ Comparables

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Company / Ticker Market Cap

Afexa (acquired) $90 M Atrium (TSX:ATB) $751 M Acasti (TSX:APO) $146 M Bioniche (TSX:BNC) $51 M Burcon (TSX:BU) $121 M Neptune (TSX:NTB) $208 M SunOpta (TSX:SOY) $737 M Average: $300 M Median: $146 M Avivagen (TSXV:VIV) $10 M

www.avivagen.com Science is in our nature

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