calyx bio-ventures corporate presentation
DESCRIPTION
Calyx Bio-Ventures Inc. trades on the TSX Venture Exchange under the symbol "CYX" and owns a majority position in Agrisoma Biosciences Inc. Agrisoma is an agricultural biotechnology company that uses a proprietary Engineered Trait Loci (ETL) technology licensed from Calyx to commercialize a suite of industry-leading oil quality and crop improvement traits for use in energy feedstock crops. For further information about Calyx, its technology, collaborations and partnerships, please visit www.calyxbio.com. Resonance™ is a trademark of Agrisoma Biosciences Inc. For more information about Resonance, visit www.agrisoma.com.TRANSCRIPT
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TSX-V: CYX | Corporate Presentation
May 2013
Renewable Energy Founded in Agriculture
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Forward Looking Statements
Certain statements contained in this document constitute “forward looking statements”. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “propose”, “anticipate”, “believe”, “forecast”, “estimate”, “expect” and similar expressions as they relate to the Company or its management, are intended to identify forward-‐looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-‐looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-‐looking statements. The Company does not intend, and does not assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward looking statements contained herein to reflect future results, events or developments except as required by law.
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We’re all about
• leveraging our IP to improve crop yield & performance
• the first crop “Resonance-‐carinanta” can …
• reduce the world’s petroleum dependence and greenhouse gas emissions associated with transportation fuels by creating a …
• drop-‐in, cost competitive alternative to petroleum-‐derived fuels, compatible with existing engines yet with superior performance.
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a scalable seed business
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Carbon Dioxide Emissions: • Flying accounts for a large portion
of emissions
• There is currently no large scale production of alternative energy for air travel
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• Calyx owns a proprietary portfolio of patents with respect to modifying and engineering agricultural crop traits
• Technologies have been licensed to Agrisoma Biosciences Inc., a majority-‐owned subsidiary, which is applying these technologies primarily to a new oilseed crop called “Resonance®”, a variety of brassica carinata
• Resonance carinata produces oil that is superior for industrial applications, such as biofuel production, than are food-‐based oils like soy or canola
• Resonance carinata grows more oil per acre than other oilseed feedstocks on target lands
• Agrisoma is a seed technology company that sells Resonance carinata seed to farmers. 2012 was the commercial launch of Resonance carinata seed sales
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Renewable Energy Rooted in Technology
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Carinata Uses
100% of the Resonance carinanta crop is used and produces two products: oil & meal
OIL -‐ CAN BE REFINED INTO • drop-‐in jet fuel • biodiesel • other: naptha, emulsifiers
MEAL • animal feed that is high in soluble protein • approved for sale in the United States as cattle feed
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Why Resonance?
• multi-‐billion gallon demand for renewable oil feedstock for biodiesel and biojet fuel from non-‐food sources
• aviation is an industry that has committed itself to zero carbon growth through biojet fuel usage, creating huge demand
• Resonance carinata offers a hugely scalable opportunity to profitably produce high-‐quality renewable oil at a price point superior to other feedstocks
• Resonance carinata is suited to semi-‐arid lands and crop rotations and can be scaled to multi-‐millions of acres of production without displacing food crops
• Resonance carinata utilizes existing infrastructure throughout the farm to the end-‐user
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Resonance carinata – ideal for brown soil zones
16 million acres
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Resonance carinata = oil + meal
• sustainable production on semi-‐arid, marginal lands
• 40M+ acres of lands suitable for Resonance in just North America
• ideal rotation crop -‐ no displacement or competition with food crops
• Resonance carinata entered first commercial year in 2012 – successfully harvested 6,000+ acres at all growing sites
• meal approved for sale as cattle feed in the USA
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growers have fallow lands
Crop Ramp-‐Up ü 2011 -‐ 50 acres ü 2012 -‐ 6,049 acres Ø significant grower demand
for product
Ø excellent performance in drought conditions
Ø scalable business opportunity into key US markets
Ø in excess of 40 million acres of production capacity in North America alone
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Market development through field tours and trade show promotion with target growers
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grower marketing & support: Crop Walk Series (summer 2012)
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• farmer focused, field walks of production sites • opportunity to meet with producers and see real world results • total 2012 summer Crop Walk Series reached 500 growers across AB & SK
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Carinata’s competitive advantage: more yield per acre on target lands
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a distant cousin of Canola, yet:
• higher heat tolerance
• more resistant to drought
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Resonance-‐carinata
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Global Demand for Energy Crop Feedstock
2006 % of total production
2012 % of total production
Oilseeds 6% 25%
Palm oil 3% 21%
Wheat / barley 1% 2%
Corn 7% 15%
Sugarcane 17% 28%
Source : Rabobank analysis
2006 2012
Ethanol 11 B gal 27 B gal
Biodiesel 2 B gal 8.9 B gal
Total 13 B gal 35.9 B gal
Biofuel Demand Biofuel Feedstock Source
Ø according to the International Energy Agency, or IEA, biofuel production could reach approximately 112B gallons by 2030. To meet these targets, the IEA believes feedstock production would need to increase to 150M acres in 2030, up from 75M acres in 2010.
Ø oilseeds are the fastest growing feedstock source – biodiesel and aviation
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Source : Cere’s S-1
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Dedicated Feedstock Crops Enable The Biofuels Value Chain
• Feedstock Oil Quality & Cost
• Production on Farm – Scalability, Infrastructure
• Crop Processing and Delivery of Oil
• Biofuel –Manufacturing Efficiencies
long chain oils – uniform chemistry for manufacturing efficiencies -‐ lower cost than food oils being used now easily scaled to large acreage -‐ Crop production infrastructure in place, including strong agronomic package – growers engaged and committed to Carinata production standard oilseed processing with valuable meal co-‐product, uses current infrastructure long chain oils = most efficient feedstock for conversion technologies – less waste, more fuel, better quality fuel
Value Chain -‐ Needs Resonance Carinata Energy Feedstock Solution
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competitive edge for Resonance carinata
• high concentration of Erucic acid (22:1)
• two jet fuel molecules (C8-‐C14) from one C22 fatty acid whereas C18 oils can only produce one jet fuel molecule
• higher yields of jet fuel and better cost structure
• higher probability of optimal cracking and diversity of carbon chains
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resonance-‐carinata biojet exceeds ASTM specs
HRJ Renewable Green Jet™
Agrisoma RediJet Carbon Distribution
Resonance Biojet Analysis1 Match to ASTM Specifications2 Manufacturer3
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April 2012: Porter Airlines Flight
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• on April 17, 2012 Porter Airlines conducted Canada's first bio-‐fuel powered revenue flight
• porter airlines flew one of its Bombardier Q400 turboprops from its base at Billy Bishop Toronto City Airport to Ottawa using a 50/50 blend of biofuel and Jet A1 fuel in one of its engines. The fuel was certified to the new American Society for Testing and Materials (ASTM) D7566/D1655 standard and the biofuel used was derived from oilseed crops including the Resonance oilseed grown and produced by Agrisoma.
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April 2012: NRC National Research Council
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• biojet fuel refined from Resonance-‐Carinata blended 50/50 with petroleum-‐based jet fuel for NRC flight
• real-‐time, in-‐flight emissions testing conducted by trailing jet using a “sniffer probe”
“particulate emissions, including aerosols of black carbon, sulphates and by-products of the combustion of aromatic compounds, are significantly lower”
In-flight trailing emissions testing in six independent flight segments using Honeywell Green Jet Fuel™ including above the 50/50 blend ratio1
1As reported by the National Research Council Aerospace at the Farnborough Airshow July 9, 2012
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October 2012: a world first ! civilian jet aircraft powered by 100% biofuel
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NRC flew a Falcon 20 jet powered 100% by biojet fuel refined from Resonance-‐carinata. This flight was the first time in the world a civilian jet aircraft was powered by 100%, un-‐blended, renewable jet fuel that met petroleum jet fuel specifications
Results of Flight: • no engine modifications were required
• 50% reduction in aerosol emissions
• 25% reduction in particles
• 49% reduction in black carbon
• improvement of 1.5% in fuel consumption
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December 2012: Popular Science
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Popular Science Magazine declared the 100% biofuel flight as
“one of the year's 25 most important scientific events”
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Next Steps: North American Expansion, Extensive Testing Program
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• northern production zone
• 50 trials, 27 locations
• nursery sites established:
• Swift Current, Saskatchewan
• Minot, North Dakota, SDSU
• winter crop development in the south:
• Successful testing in Mississippi
valley and Southeast (Univ Florida)
• North America production potential
exceeds 40MM acres without impacting
food production
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Continued Development: ETL technology
• our ETL technology is a proprietary, field-‐validated crop improvement platform that creates enhanced crops
• the platform is able to efficiently introduce or stack multiple traits simultaneously into engineered plant chromosomes
• the ability to introduce all of these traits in one cycle is far superior to current trait introduction methods that require multiple cycles
• ETL will significantly increase the amount of oil per acre yielded and further enhance the superior economics of Resonance-‐carinata
• ETL technology viability supported by licensing agreement with Dow Agrosciences, which has licensed ETL for use in food crops
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Continuous Improvement: breeding & trait stacking
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• Breeding:
• largest Brassica Carinata collection in the world, over 1,000 accessions
• hybrid development, extensive testing program with over >50 trials, winter and
summer nurseries
• molecular markers, haploidy, hybrids, genome sequencing, advanced breeding
tools
• Traits:
• unique trait stacking ability: proven chromosome engineering technology
(Engineered Trait Loci -‐ ETL)
• extensive trait collection related to oil and yield
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Business Milestones
ü Initial commercial rollout – 6,000 acres seeded and harvested in 2012
ü secured strategic partnership with PGF Biofuels for logistics, handling & commercial contracting in North America & Australia
ü commercial test flights
ü acquired majority ownership of Agrisoma Biosciences Inc.
ü Introduced higher yielding line of Resonance carinata in 2013 q secure off-‐take agreements
q biojet fuel production underway
q Certification of carinata under Renewable Fuel Standard in USA
q meal approval in Canada
q continue trials in USA in advance of commercialization
q continue field trials of ETL Carinata to achieve commercial status by 2015
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Why Calyx?
ü timing: 16 years of science and $20 million of aggregate investment -‐ commercial product now ready
ü management track record of building companies and delivering returns to shareholders
ü proprietary technologies: Calyx owns master license for “ETL” chromosome technology and Agrisoma owns the breeder rights for Carinata
ü 2012 saw first significant seed sales and crop/revenue growth – 6,000+ acres planted
ü great crop performance on-‐farm in spite of 2012’s severe drought conditions in much of North America
ü huge market for oilseed feedstock – currently a feedstock shortage exists globally including North America – strong demand means farmers will quickly adopt Carinata
ü Carinata provides feedstock better suited to fuel and industrial uses than other feedstocks, thereby enabling biofuel production to be more economic – sustainable competitive advantage
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Calyx Bio-‐Ventures capital structure
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Calyx Bio-‐Ventures Inc. (CYX-‐T) capital structure
common shares issued & outstanding: 29.8 million
fully diluted: 39.3 million
recent price: $0.27
market capitalization: ~$8 million
v Closed on $4.0M in December 2012 @ $0.30/unit with a ½ warrant (1-‐year) at $0.60
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Calyx’s ownership: 50.0%
BDC Venture Capital’s ownership: 49.9%
Others: 0.1%
v Each party responsible for pro-‐rata portion of Agrisoma funding
Agrisoma Biosciences Inc., capital structure
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Calyx Bio-Ventures Management
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Wm. Hugh Notman, President & CEO • Partner at Stirling Mercantile Corporation, corporate
finance advisory • Corporate director of public and private companies
Richard Whittall, Director • CEO Newstrike Capital Inc. ($300M Market Cap) • Corporate director of several public and private
companies • Former Director of Burcon Nutrascience Kevin Rathbun CFA, Corporate Development • Former CFO of Realm Energy (bought out in 2011) • Director of Newstrike Capital Inc.
Keir Reynolds, Investor Relations • President of Mammoth Market Advisory Corp. • Raised in excess of $120M in public venture capital
Stuart MacGregor, Director • President of MacGregor Equities Inc., a Toronto
based manager of an investment partnership with a focus on private equity investments; previously, a Partner of Polar Capital Corporation
David T Howard, Director • Previously a director of JRI International Ltd., a
privately-owned agriculture company and SemBioSys Genetics, Inc., an ag-biotech company
Louis P Lacasse, Director • President of GeneChem Management Inc.,
manager of a specialized biotechnology venture fund
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Agrisoma - Management Team
• Steven Fabijanski, PhD President & CEO • 20+ years senior executive experience in the agriculture and biotechnology industry,
previously built and sold a seed company specializing in oilseed technology (Sold to Pioneer)
• Patrick Crampton, MBA VP Business Development • 15+ years global marketing and product management for Syngenta Seeds
• Michael Lindenbaum, PhD VP Technology • 15+ years R & D, inventor, as well as the scientific and technical leader of the ETL
technology applications
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Supported by management and advisors with decades of agricultural business experience: • Daryl Males – Agrisoma Product Manager (previously product development manager at Viterra Inc.)
• Mejda Lortie – Director of Government & Regulatory Affairs (previously government affairs leader at Biotech Canada)
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s
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Calyx Bio-Ventures Inc. (TSXV:CYX) www.calyxbio.com
Hugh Notman President & CEO T: (604) 689-2495
Keir Reynolds Investor Relations T: (778) 998-9242
Kevin Rathbun Corporate Development
T: (604) 837-4360 [email protected]