Accurately diagnosing disease in People, Pets and Production - PowerPoint PPT Presentation

Accurately diagnosing disease in People, Pets and Production Animals BEFORE symptoms appear February 2018 David Gordon, CEO Dr. Christoph Sensen, CSO

Disclaimer This Presentation is based upon information supplied by CNA Diagnostics Inc. research, development, and commercialization activities, financing activities, (“CNAD” or the "Company") solely for use by prospective strategic partners protection of intellectual property, market share and growth. Actual results may and/or investors in the company. This Presentation does not purport to be all- vary from the forward-looking information in this presentation. Material risk inclusive or to contain all of the information that a prospective strategic partner factors that could cause actual results to differ materially from the forward- and/or investor may desire. No representation or warranty is made as to the looking information include: (i) CNAD’s ability to develop commercially viable accuracy or completeness of any of the information contained herein. Each products; (ii) CNAD’s ability to achieve profitability; (iii) CNAD’s ability to recipient of this memorandum agrees that all of the information contained produce and market its products; (iv) CNAD’s ability to obtain regulatory herein is of a confidential nature, that he will treat it in a confidential manner, approval of its products; (v) CNAD’s ability to protect its intellectual property; and that he will not directly or indirectly, disclose, or permit his agents or (vi) competitive and alternative technologies; and (vii) CNAD’s ability to obtain affiliates to disclose, any of such information without the prior written consent of financing to support its operations. The material factors or assumptions that the Company. Neither this Presentation, nor its delivery to any prospective were used to develop the forward-looking information in this presentation strategic partner and/or investor, shall constitute an offer to sell or the include: our ability to achieve research and development objectives, timing of solicitation of an offer to buy any securities of the Company, nor shall this proposed commercialization plans, ability to protect intellectual property, ability Presentation be construed to indicate that there has been no change in the to secure needed financing or our ability to develop sufficient margins in the affairs of the Company. This Presentation contains "forward-looking business through development of proposed technology or other means. information", which is disclosure regarding possible events, conditions or CNAD's views regarding possible events, conditions or financial performance financial performance that is based on assumptions about future economic may change. However, CNAD does not intend to update the forward-looking conditions and courses of action. In particular, the forward-looking information information in this presentation, except as required by applicable securities in this presentation includes: statements regarding timing and outcomes of legislation.

At a Glance • Molecular diagnostic company with a proprietary technology platform + significant in house expertise that accurately identifies diseases in People, Pets and Production Animals BEFORE symptoms appear. • Third party validation: Canadian military collaboration on human sepsis. Kills 5.1M annually worldwide. $24B annual health care costs in USA. Once symptoms appear chance of death increase 8% per hour. Phase 1a study – identified all 22 patients 2-3 days BEFORE the symptoms appeared. • Developing and monetizing an IP portfolio of diagnostic tests. • Process is standardized, repeatable, and scalable. • T o date 100% success rate in the identification of motifs for four diseases in humans (sepsis ~3 days), cattle (BSE – 10 months), elk (CWD – 10 months) and rats (radiation – 1 hour). • Business model is to stay within our niche and employ channel partners for distribution. • Low SG&A costs. Burning only $50k CAD per month plus R&D. Full wet lab benefits and large research team through intelligent partnerships. • Third party validation: license agreement for the distribution of production animal diseases with major European pharma for 67 countries. • Industry is attracting capital. Everyone is focused on human cancer. • Test pipeline is ready to expand aggressively.

Proof of Concept Mammal Challenge Identification Value Commercial Use Identify impact Rats Radiation Proof of concept None yet within 1 hour 10 months Elk Chronic wasting Proof of concept None before symptoms Bovine Spongiform 10 months Prevents transfer to Beef Cattle Beef Importing Nations Encephalopathy before symptoms humans and other animals Saves lives Wide spread, plans Up to 3 days before ~20% death rate Human Bacterial Sepsis for screening diagnostic being symptoms 1 million infections developed with MedUni Graz in USA each year

Circulating Nucleic Acids (CNA) +8 years to develop proprietary technology Cells die as part of normal life CNAD identify long chain DNA Tests easily run using (Apoptosis). DNA information biomarkers specific to the host’s standard PCR equipment. regarding cell activity is response to the challenge. Limited specific expertise Body responds to released into the blood and Markers are usually present required to administer. challenges as it fights contain the genomic regions before the clinical signs appear. to return to normal. Biomarkers are patented. that were transcribed just α<0.0001 before the cell died.

Workflow High- Blood Isolation and Identification of Bio-informatical throughput Collection Amplification Marker Sequences Analysis Sequencing of DNA by PCR of DNA

IP Portfolio - Sepsis Opportunity • CNAD is working with Canadian Department of National • Highest burden of death and medical expenses in hospitals Defense. Mar. 2015 – Completed initial trial utilizing 22 worldwide. test Sepsis patients and a control group of 51 people. – Most expensive in-patient cost in U.S. hospitals - $24B annually. • CNAD is working with Medical University of Graz – Once signs of the disease appear ~20-30% chance of death. • 66 Candidiasis samples • 1.6M cases annually in U.S. with 500,000 deaths. • Expensive and unpredictable to health insurers. • Results: • Over 300 different forms of Sepsis. i.e. bacterial, fungal, etc. – 100% identification of sepsis in patients. • Competitors have developed solutions to diagnose specific forms – Diagnosed infection up to 3 days before any clinical of sepsis a patient has contracted. signs appeared. – These tests are not commonly run until clinical signs appear. • Next steps – Phase 1b bacterial – 33 E. Coli, 27 S.Aureus. Phase 1 Fungal. 66 Candidiasis. • Goal – Biomarkers identified and provisional patents filed by end of 2018.

Human Sepsis PCR Status: Infected Individuals vs. Controls The cycle at which fluorescence from amplification exceeds the background fluorescence The lower the CQ value is the higher is the amount of target CQ difference of 3.3 means 10 fold higher or lower amount of target! Still under evaluation (normalization needed)

Corporate Strategy - Positioning Barbell Strategy Deploy funds to animal diseases Selectively investigate high impact • Quick to market human diagnostics • Quick to cash flow • Massive upside potential • Lower risk to investors • Use non-dilutive funds as much as • Only diseases/conditions with high economic possible to reduce risked capital impact

Corporate Strategy – Business Offering Identification of biomarkers related to diseases or conditions CRO Pure Distribution Collaborative • Margin • CNAD keeps IP • CNAD keeps IP earned on • Royalty share • Samples, studies of Net Sales distribution, IP assigned CNAD bears costs sharing, • • Royalty tail costs disease ID are • unique to deal Appropriate for Appropriate for Unique deal terms large enterprises low risk appetite

Corporate Strategy - Partnering Product Distribution: Samples for New Diagnostic Tests: • Use of channel partners. • Securing human sepsis samples through Medical University of Graz, Canadian Military. • 67 country distribution agreement with Laboratorios Maymo for bovine tests • Agreement with Vetmed Vienna. • Limited sales costs. • Access to one of largest European biobanks. • Multiple partners (never just one). • Scientific Advisory Committee. • Access to new distribution partners via Director • Collaborative partnerships. networks, contracted sell side networks, and other existing contacts. • Accessing large scale manufacturing (sepsis). • In discussion with mid-sized pharma and vet operations. • Opening doors to government at high levels.