CSE: MGRO OTC: MGROF Providing Natural, Science-Based Biological - - PowerPoint PPT Presentation
CSE: MGRO OTC: MGROF Providing Natural, Science-Based Biological - - PowerPoint PPT Presentation
CSE: MGRO OTC: MGROF Providing Natural, Science-Based Biological Solutions for High Value Crops Corporate Presentation February 2020 April 2018 Disclaimer The views expressed herein contain information derived from publicly available
The views expressed herein contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This Presentation should not be relied upon as a recommendation or forecast by MustGrow Biologics Corp. and it’s wholly owned subsidiary MPT Mustard Products & Technologies Inc. (“MustGrow”). Certain statements contained herein constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions are intended to identify forward-looking statements. Such statements reflect MustGrow's current views with respect to future events and are subject to certain risks, uncertainties and assumptions (known and unknown). Many factors could cause MustGrow's actual results, performance or achievements to vary from those described herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, sought, proposed, believed, estimated or expected. MustGrow does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Note that purchasing securities of MustGrow should be considered a risky investment as the securities are speculative in nature and are appropriate only for investors who are prepared to have their money invested for a long period of time and have the capacity to absorb a loss of some or all of their investment. There is no public market for the securities of MustGrow, and one may never develop, therefore investors may find it difficult to resell their securities. The securities referred to in this Presentation have not been and will not be registered under the U.S. Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933 and any other applicable securities laws. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, the securities, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Disclaimer
2
About MustGrow
MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) is an agriculture bio-tech
company focused on providing natural, science-based biological solutions to replace synthetic chemicals used in high value crops such as fruit & vegetables and cannabis.
- Global chemistries are being banned or deregistered
- Consumers are demanding food that is healthy, natural and safe.
- Producers want to use safe products to protect their crops, but only if they work.
- 100% owned patented Mustard-Derived technology
- Natural Bio-Pesticide that acts as a pre-plant treatment for soil borne pests and diseases.
- Potential to disrupt the existing global Ag pesticide market ~US$65Bn.
- US F&V fumigation market ~US$360MM.
- Compared to synthetic chemicals, we can compete on efficacy and potentially on price.
- Cannabis Cultivation in Canada: Highly regulated; No chemical use
- 100% owned mustard-derived Bio-Pesticide to treat the soil before its brought into the greenhouse.
- In-Licensed Bio-Fungicide: CannaPMTM to treat Powdery Mildew.
- Tight capital structure
- 36MM shares outstanding with ~14MM free trading.
- Management and advisors own 27% of total shares.
- ~C$20MM market cap.
3
MustGrow is primarily focused on disrupting the US$65 billion global pesticide market |
Safe and Effective Natural Products
Key Management, Directors & Advisors
Corey Giasson
President, CEO & Director
- ~30 years of agriculture experience
with an MBA and B.Sc. Ag Economics from the University of Saskatchewan
- Previous Co-founder & CEO of
Rallyemont Energy, sold to Husky Energy
- Previous Vice President, at Anglo
Potash, sold to BHP
- Previous Manager at PotashCorp
Brian Quigley
Director
- Co-Founder of Green Sky Strategy
- 16 years at Altria Group; including CEO of
Altria’s innovation company
4 Mark Hetherington
Scientific & Formulations Advisor
- Expert Director of Clinical Research in the
Canadian cannabis industry
Colin Bletsky
COO & Director
- ~30 years of experience in
agriculture
- Previous Vice President, BioAg at
Novozymes where he was responsible for the BioAg business worldwide
- Colin holds a Bachelor of Science
in Agriculture from the University
- f Saskatchewan
Tom Flow
Director
- Founder & Co-CEO of The Flowr Corporation
- Previous Co-Founder of MedReleaf (sold for $3.2B)
- Widely-recognised for cannabis cultivation thought
leadership and expertise`
Jamieson Bondarenko, CFA, CMT
Capital Markets Advisor
- Current: Advisor to Lexaria Bioscience Corp.,
Chairman of BriaCell Therapeutics Corp.
- Previous Equity Capital Markets roles with
Eight Capital, Dundee, HSBC
World-class team of agriculture and business professionals
How Has This Pesticide Not Been Banned?
The pesticide known as chlorpyrifos is both clearly dangerous and in very wide use. It is known to pass easily from mother to fetus and has been linked to a wide range of serious medical problems, including impaired development, Parkinson’s disease and some forms of
- cancer. That’s not entirely surprising. The chemical was originally developed by Nazis during World War II for use as a nerve gas.
- - The New York Times; December 17, 2019
Global Chemistries are Being Banned or Deregistered
Bayer says U.S. glyphosate plaintiffs more than double since July
Germany’s Bayer is now facing 42,700 U.S. Plaintiffs blaming its glyphosate-based weedkillers for their cancer, more than twice the tally in July and potentially raising any future settlement.
- - Reuters; October 30, 2019
France bans crop pesticide metam sodium after people fall ill
The US Environmental Protection Agency (EPA) considers metam sodium a probable human carcinogen … Still, metam sodium is among the most widely used agricultural pesticides in the United States.
- - Reuters; November 5, 2018
U.S. appeals court orders EPA to ban pesticide said to harm children
Judge Jed Rakoff directed the EPA to ban chlorpyrifos within 60 days, saying the agency failed to counteract scientific evidence that its residue on food causes neurodevelopmental damage to children.
- - Reuters; August 9, 2018
5
MustGrow’s Technology is a Natural Biologic, Not a Chemistry
Safe Harmful Effective Not Effective
Chemistries Biologics
6 Nematode Control Natural Mustard-Derived Disease Control
100% Owned Patented Bio-Pesticide
>110 Independent Trials Organic Certification New Liquid Formulation “Granule Format” is already EPA-approved – Now seeking registration for Liquid Formulation label
Massive Potential for MustGrow’s Technology
7
$18 Billion $15 Billion $25 Billion $2B $12 Billion
Grain Toxins $15B est global loss Non Selective Herbicide $25B global market size Container Fumigation $2B est global market size Bananas – Panama Disease $18B est global loss
- E. coli, Salmonella & Listeria
$12B est global loss Fruit & Veg Soil Fumigation $856MM est global market size Cannabis Soil Fumigation & Powdery Mildew $200MM est market size (Canada)
$4B
Tobacco Nematode & Disease Fumigation $4B est global loss
MustGrow testing completed and data confirmed MustGrow testing in progress
Source: Globenewire
Product Pipeline
8
Phase of Development
Canna PM - Bio-Fungicide / Cannabis & Hemp Canna MG - Soil Bio-Pesticide / Cannabis & Hemp Terra MG - Soil Bio-Pesticide / Fruit & Vegetables MG 1001 - Bio-Nematicide - Tobacco MG 2001 - Bio-Herbicide - Non Selective MG 3001 - Bio-Pesticide - Toxin Control / Stored Grains MG 4001 - Bio-Fungicide - Club Root / Canola MG 4002 - Bio-Fungicide - Fusarium Wilt TR4 / Bananas MG 3002 - Bio-Pesticide - Broad Acre Soil Pests & Disease MG 4004 -Bio-Fungicide - Ecoli, Salmonella, Listeria MG 3003 - Bio-Pesticide - Fresh Produce
1 2 3 4
MustGrow’s Value Proposition for Fruit & Vegetable Growers
- MustGrow’s 1st Generation Granular Technology had only modest market penetration
- Bulky granular product that was costly to transport.
- Fruit & vegetable growers prefer application through drip line.
- MustGrow’s 2nd Generation Liquid Technology has great potential to compete on price
compared to chemistries:
- 2.5-5.0 gal/acre had 100% control of key soil based fungus.
- 10% market penetration in the United States (US$504MM) would generate US$50MM in sales.
Source: Globenewire
9
US 42% SA 4% EU 37% Africa 3% Asia 14%
Projected Global Fumigation Market
US$1.2B by 2025 (CAGR 4.6%)
Fruit & Vegetable and Cannabis Growers Have Similar Issues
1 Health Canada website.
Pythium Root Rot Rhizoctonia Fungus
Fusarium (root rot)
Verticillium Wilt Phytophthora Root Rot Sclerotinia Stem Rot Two-Spotted Spider Mite Aphids Fungus Gnats Thrips Hemp Russet Mite
Botrytis (gray mold)
Alternaria Fungus
Powdery Mildew
MustGrow’s natural biologics provide treatment of these pests and diseases
10
Nematodes
MustGrow’s Value Proposition for Cannabis Growers
What is the cost of a lost cannabis crop?
- The cost of 1 million square feet of lost crop due to powdery mildew is estimated at $400-800
million loss, or $400-800/sf on just one cut1
1 Estimate based on 1 plant per 4sf, 200-400 grams/plant, and $8/g. 2 Estimate based on 20% market penetration on 10,000,000 sf (net producible sf) in Canada and 4.5 cuts/year.
11
CannaPMTM CannaMGTM
Treatment for… Powdery Mildew Botrytis (Gray Mold) Fusarium (Root Rot) Cost of Lost Crop $400-800/sf $400-800/sf Revenue per sq ft $3.00/sf $3.00/sf Per Gram $0.015-0.030/g $0.015-0.030/g MustGrow’s Potential 2021 Annual Revenue2 $20 million $20 million
At 20% market penetration in 2021, MustGrow could potentially generate $40 million of revenue per annum.
Fast-Tracked Development Estimate
Existing Fruit & Veg label with PMRA in Canada and the US EPA
- With its existing granular label, MustGrow’s mustard-derived technology may be fast-tracked
for application in cannabis under CannaMGTM and the Liquid Technology for F&V under TerraMGTM.
12
In-Licenced Mustard Derived Mustard Derived
Estimated Timeline
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CannaPM Powdery Mildew Product
PMRA submission and review for cannabis cultivation CannaPM product launch in Canada
CannaMG Pre-Plant Soil Treatment
Cannabis label registration & greenhouse testing CannaMG product launch in Canada
Liquid Technology for Fruit & Vegetables - TerraMG
EPA & PMRA submission Fruit & vegetable product launch of TerraMG in Canada & US
2020 2021
Capital Structure
Warrants include 537,600 warrants underlying Unit Warrants. Debt has no maturity; no interest payable; no scheduled principal payments. Due upon change of control of MustGrow and/or certain revenue milestones.
13
CSE: MGRO / OTC: MGROF
Basic Shares Outstanding 36,385,084 Options 2,450,000 Warrants 16,268,461 Fully-Diluted Shares Outstanding 55,103,545 Previous Capital Spent (C$MM) $10.0 Cash Position (C$MM) $3.5 Debt (C$MM) $1.0 Insider Ownership (22%) 8,091,733
Corey Giasson, President & CEO
coreyg@mustgrow.ca p: 306-717-1128
Thank you
Colin Bletsky, COO
colinb@mustgrow.ca p: 306-241-6095
14