Corporate Presentation April 2019 TSXV | NHP
- A GROWTH STORY > Mondias Natural Products (TSXV: NHP) specializes in the commercialization and development of evidence-based botanical products for the bio-agriculture and healthcare markets. > Mondias is focused on large, growing markets, such as the biopesticides, biostimulants, sleeping aids, wound healing, acne, nail fungus, and hair loss markets. > The Company has a strong IP portfolio, including 53 products with Health Canada Natural Product Numbers (NPNs) and 4 patents. > Mondias generates revenues by selling its products through its Holizen division and web platform (www.holizen.com), as well as through retailers, distributors, and co-branding partnerships. 2
FOCUS ON LARGE, GROWING MARKETS 2019 Biopesticides Global annual economic losses of $10 billion to $100 billion from Biostimulants grey mould and powdery mildew postharvest infections Global sleeping aids market valued at $69.5 billion in 2017, expected to Sleeping aids reach $101.9 billion by 2023 2020 Global insect repellent market expected to grow at a CAGR of 6.5% Insect repellent to reach $7 billion by 2026 Global acne drug market expected to grow at a CAGR of 4.2% Acne to reach $5.9 billion by 2025 Global nail fungus market expected to grow at a CAGR of 7.6% Nail fungus to reach $6.7 billion by 2026 Global wound healing market valued at $23.3 billion in 2016, expected Wound healing to reach $35 billion by 2025 Global hair loss market valued at $7.3 billion in 2015, expected Hair loss to reach $11.8 billion by 2024 3
LEADERSHIP - Broad expertise in natural products development and commercialization BOARD OF Jean-Philippe Gravel, MBA - President and Chief Executive Officer DIRECTORS Over 14 years of experience in business management André Rancourt and development, having held strategic roles in the Chairman and Co-founder of Mondias medical, pharmaceutical and banking industries. (previously CEO and Chairman for Tetra Biopharma) Jamil Samsatly, M.Sc. Louis Doyle Chief Scientific Officer Executive Director of Quebec Bourse Completing his Ph.D. at McGill University. Over 10 (previously VP of TSX Venture Exchange, Montreal) years of experience in sustainable agriculture, healthy agri-food systems and molecular biotechnology. Frank Palantoni CEO of LabM2 Sabino Di Paola, CPA, CA (previously President of Pet and Life Science, Global CEO of Chief Financial Officer Gerber Products and CEO of Novartis Consumer Health) Over 10 years of experience in audit, finance and accounting as an auditor for PricewaterhouseCoopers Michel Timperio and BDO Canada. President - Cannabis Business, Neptune Wellness Solutions (also on the board of Relevium Technologies) L. Derek Lindsay, MBA Vice President, Corporate Development Bertrand Venne Consultant Expertise in raising equity and financing projects, structuring creative strategic partnerships, increasing (previously President and CEO of Les Entreprises Pâtes et investor awareness and completing acquisitions. Croûtes and Aliments Novali) 4
A BETTER ALTERNATIVE TO SYNTHETIC PESTICIDES? > The biopesticide market represents less than 5% of the global pesticide market, which is expected to grow to $90 - billion by 2023. Biopesticides > Synthetic pesticides pollute ecosystems, cause human Biostimulants health problems (recent example of Glyphosate or Roundup) +$10 billion and create pest resistance. market > As a result, there is an increased number of growers that are opportunity* seeking eco-friendly alternatives to pesticides. - * Source: L. Hua et al., 2018 5
CELEXT07 BOTANICAL EXTRACT - Superior eco-friendly alternative to synthetic fungicides - > CELEXT07 bio-defense stimulant proven to be a superior, eco-friendly alternative to synthetic fungicides. > Developed to prevent and fight diseases affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). > Successful large-scale greenhouse trials on tomatoes, lettuce and hops. > Positive field tests on cannabis leaves with leading cannabis producer. > Patent pending on herbal phytosanitary composition and methods for the prevention and treatment of plant infections in Canada, the U.S., Europe, China, Australia, Brazil and WIPO. 6
- Product ready to market! - - CELEXT07 NEXT STEPS > Product is ready to market. > Ongoing product testing and discussions with leading cannabis producers, as well as agriculture and horticulture companies. > Strategy to develop co-branding partnerships. > Production capacity secured to meet demand from potential clients. 7
- SLEEP DEPRIVATION AND ANXIETY: A GROWING PROBLEM SLEEP PROBLEMS ARE: > Associated with accidents and human errors (10-15% of fatal motor-vehicle crashes and large number of medical errors). - > Common (insomnia and sleep apnea). Combined > Likely to increase (24/7 society). +$100 billion sleeping aid ANXIETY AND DEPRESSIVE DISORDERS ARE: and anxiety market by > The two most common psychiatric 2023* illnesses across the globe. - > The main causes of sleep deprivation. * Source: P&S Market Research, 8 May 2018, and IndustryARC, April 2018
SLEEPING AID PRODUCT LINE > Mondias developed its first natural health product line with proven efficacy for sleep and anxiety disorders. Ongoing research to assess if our product can induce restorative sleep in patients suffering from chronic pain. > Patent pending on herbal compositions for the treatment of sleep and dream‐related disorders in the U.S. and WIPO. - Proven efficacy NEXT STEP for sleep and Web-based launch of our new product anxiety line planned for the second half of 2019. disorders - 9 * Source: P&S Market Research, May 2018
HOLIZEN - 2019 expansion could triple market size > Mondias generates revenues by selling - its products through natural health product stores via its Holizen division. > Goal to expand the business in the rest of Canada and grow sales in Quebec by stepping up promotional activities. > Sales representation agreement signed with Wisdom of Nature Inc., a company specializing in retail sales of natural health products in Ontario. > Ontario has 450 natural health products stores, compared to just over 200 in Quebec. > Next step includes expansion into Western Canada. * Source: P&S Market Research, May 2018 10
F2018 FINANCIAL Je vais produire PERFORMANCE un tableau > Revenues of $536,659 for the year ended November 30, 2018 (no comparative figure as F2017 consisted of a single quarter). > Q4 2018 revenues increased 11.4% to $157,369 from - $141,253 in Q4 2017. Gross margin of > Gross margin of xx.x% in Q4 2018 versus 45.5% in Q4 2017. xx.x% in Q4 2018 > As at November 30, 2018, working capital of $796,559, including a cash balance of $1,115,020. - > Low-cost structure, with a projected burn rate of $115,000 per quarter. 11
- NATURAL PRODUCTS PIPELINE Mondias has 53 Natural Product Numbers (NPNs) registered with Health Canada in various health market segments. It has commercialized approximately 30 products in the following market segments: > Bone health > Stress and anxiety > Cardiovascular health - > Hair health Goal is to bring > Pain management these products > Skin health to market in the > Joint pain next three > Digestive health years > Energy and vitality - 12 * Source: P&S Market Research, May 2018
GROWTH STRATEGY - Focus is on lead products and short-term growth opportunities > CELEXT07: form co-branding partnerships with leaders in the agriculture, horticulture and cannabis markets. - > Sleeping aid product line: web-based launch planned in the second half of 2019. > Looking at complementary acquisitions to boost revenues and product offering. > Expand Holizen’s operations in Ontario and Western Canada. > Continue to develop other products with the goal of bringing them to market. 13
On November 26, 2018, Mondias completed a reverse takeover of Element 79 Capital Inc. that resulted in the following: CAPITALIZATION Mondias shareholders 41,882,760 Element 79 shareholders 8,008,044 Private placement 13,245,000 Shares outstanding 63,135,805 - Committed Warrants 6,882,760 insiders hold (exercice price: $0.25) 58% of the Options 2,950,402 shares (average exercice price: $0.xx) - Fully diluted shares 72,968,967 Escrowed shares 35,000,001 Insider ownership 36,333,334 (58%) 14
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