THE ECOCHLOR ADVANTAGE: Strategies For Raising Capital in a - - PowerPoint PPT Presentation

THE ECOCHLOR ADVANTAGE:

STEVE CANDITO, CEO ECOCHLOR

Strategies For Raising Capital in a Regulatory Driven Market

• Joint Venture / Public Company Subsidiary
• Startup
• Two Large Oil Company Clients
• Debt with warrants
• Private Equity
• Carve Out
• Initial 60/40 Equity Debt Funding
• Additional M&A 100% Debt
• Angel Investors / Venture Capital
• Startup
• Family & Friends
• Retail Equity Raise
• Convertible Notes
• Client Equity Funding

Capital Alternatives

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Common Theme: Client Funding Support

• Best-in-class technology with IMO and USCG

Type Approval

• Early entry into the ballast water

management system (BWMS) marketplace

• Blue chip customer base with largest

shipowners in the world

• Asset-light business model
• Ideal platform to execute substantial growth
• pportunities

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Market Position

Ecochlor has sole market

• wnership of the patented

chlorine dioxide ballast water management technology.

Competition

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Market Opportunity

Ecochlor has a unique offering to the BWMS marketplace and is positioned as a leader in quality, reliability and service.

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Ecochlor’s After Sale Market Retrofit Market

7 Year Span Demand is high for rapid revenue growth, substantial and sustained long-term profitability.

Newbuild & Equipment Replacement Market

Shipowners are more focused on BWMS quality and compliance than lowest price. Annual reoccuring revenue growth in service, resupply and spare parts.

FUNDING PHASES

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Phase 1

Seed Funding

• Research and development
• f treatment technology
• Equipment prototype
• Testing
• Market research

Phase 2

Angel / Client Support Funding

• Additional research and

development of treatment technology

• Manufacturing and 3rd party

vendor collaborations

• Shipboard testing
• Regulatory type approvals
• Market positioning
• Professional staffing and

global offices

Phase 3

Institutional Funding

• Investing in global

infrastructure and capacity to service and resupply in- service systems

• R&D to develop a lower-cost

version of the BWMS

• Completion of an

international training facility

• Working capital to fund the

production ramp-up and additional staff

Funding Strategy

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From seed to growth, key phases in Ecochlor funding within a government regulated industry.

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Timeline

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Benchmarks of Ecochlor’s growth and development.

Timeline

Ecochlor’s ClO2 patent is approved Ecochlor receives USCG Type Approval Ecochlor’s 1st ship BWMS retrofit Ecochlor receives USCG AMS Approval SCF Group ISH/Seacor

2004 2016

BWM Convention adopted by IMO

2001 2003 2008 2006 2013 2017 2018 2019 2015

Liberty Maritime Ecochlor’s clients accepted into USCG STEP Program Angel Fundraising Angelicoussis Scorpio Tankers Minerva Marine Alaska Tankers EARLY ADOPTERS MARKET LEADERS Ecochlor is founded

2014

Convertible Notes Client Equity Funding Ecochlor receives IMO Type Approval BWMS Convention ratified Ecochlor’s 2nd & 3rd ship BWMS retrofit Institutional Fundraising Retail Equity Raise Ecochlor starts USCG testing

• Extremely high risk, reward timeline not discernable
• Chlorine dioxide (ClO2) had been used safely and effectively in pulp

and paper water treatment applications for over 60 years and was the basis for the Ecochlor treatment technology and in the application for patent to be used in the maritime industry. Patent: Chlorine Dioxide BWTS; #6,773,611; Year 2004

• Product research and development
• Manufacturing and 3rd party vendors were lined up for custom one-off

production – a prototype was produced

• Proof of concept needed - market research for product feasibility and

industry acceptance

• Early phase of competitive market – options extremely limited

Time Period: 2001 - 2003

Phase 1: Seed Funding

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Pulp and paper water treatment application.

• Reduced risk – proven concept, regulations firming, newbuilds will

now require BWMS

• Shipowners were cautious about retrofitting their vessels without

regulatory enforcement and confusion in the guidelines for compliance

• Early adopters start retrofits prior to ratification of BWM Convention

and Ecochlor’s USCG Type Approval

• Competition increased significantly with UV and electrochlorination

manufacturers (>60), but remained small with chemical injection manufacturers (2)

• Testing continued for IMO and USCG Type Approvals along with DNV

GL, ABS, LR, NK, BV, Hellenic, Liberian, RMRS and Cyprus

• Ecochlor opened offices in Maynard, MA; North Haven, CT; Limassol,

Cyprus

Time Period: 2003 - 2018

Phase 2: Angel / Client Funding

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• Firm order backlog set basis for fact-driven forecast enables

institutional investors to quantify risks and valuation

• Proven technology through in-service working BWMS on vessels and

strong customer base

• Competitive shake out in BWMS manufacturing companies due to

delay in ratification and high cost of regulatory testing – Ecochlor positioned as a leader in the industry

• Regulatory risk is reduced due to compliance deadline enforcement

with penalties

• Company track record of receipts and payments creates more certainty

regarding cash flow forecast

• Investments for growth well-defined

Time Period: 2018 - current

Phase 3: Institutional Funding

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With many regulatory issues now resolved and deadlines for shipowners fast approaching, the market for ballast water management systems (BWMS) has finally arrived. Ecochlor is strongly positioned as a front-runner in the large capacity segment of the industry. This milestone reflects all the hard work achieved by the staff and our supporters.

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Summary

Ecochlor’s funding mirrored the risks profiled in the development timeline. Now, with demand high and the company positioned for rapid growth, we are in a strong position to work with institutional investors to bring us to the next level.

THANK YOU

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Steve Candito +1 978-298-1463 steve.candito@ecochlor.com www.ecochlor.com