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

THE ECOCHLOR ADVANTAGE: Strategies For Raising Capital in a Regulatory Driven Market STEVE CANDITO, CEO ECOCHLOR

Capital Alternatives • Joint Venture / Public Company Subsidiary Common Theme: • Startup Client Funding Support • 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 2

Market Position Best-in-class technology with IMO and USCG Ecochlor has sole market • Type Approval ownership of the patented Early entry into the ballast water • chlorine dioxide ballast water management system (BWMS) marketplace management technology. Blue chip customer base with largest • shipowners in the world Asset-light business model • Ideal platform to execute substantial growth • opportunities 3

Competition 4

Market Opportunity Ecochlor has a unique offering to the BWMS marketplace and is positioned as a leader in quality, reliability and service. Ecochlor’s Newbuild & Retrofit After Sale Equipment Market Market Replacement 7 Year Span Market Annual reoccuring Demand is high for rapid revenue growth in revenue growth, Shipowners are more service, resupply and substantial and focused on BWMS spare parts. sustained long-term quality and compliance profitability. than lowest price. 5

FUNDING PHASES 6

Funding Strategy From seed to growth, key phases in Ecochlor funding within a government regulated industry. Phase 1 Phase 2 Phase 3 Seed Funding Angel / Client Support Funding Institutional Funding Research and development Additional research and Investing in global • • • of treatment technology development of treatment infrastructure and capacity technology to service and resupply in- Equipment prototype • service systems Manufacturing and 3 rd party • Testing • vendor collaborations R&D to develop a lower-cost • Market research version of the BWMS • Shipboard testing • Completion of an • Regulatory type approvals • international training facility Market positioning • Working capital to fund the • production ramp-up and Professional staffing and • global offices additional staff 7

Timeline Timeline EARLY ADOPTERS MARKET LEADERS Benchmarks of Ecochlor’s growth and development. Alaska Tankers Liberty Maritime Minerva Marine ISH/Seacor SCF Group Scorpio Tankers Ecochlor’s 1 st ship Ecochlor is Angelicoussis founded BWMS retrofit Ecochlor receives USCG AMS Approval Ecochlor’s 2 nd & 3 rd ship Ecochlor’s ClO 2 BWMS retrofit Convertible Notes Client Equity Funding patent is approved 2006 2013 2014 2015 2008 2016 2017 2019 2018 2001 2003 2004 Ecochlor starts Ecochlor receives Ecochlor’s clients accepted Angel Fundraising Institutional Fundraising USCG Type Approval into USCG STEP Program USCG testing BWMS Convention BWM Convention Ecochlor receives Retail Equity ratified adopted by IMO IMO Type Approval Raise 8 8

Phase 1: Seed Funding Time Period: 2001 - 2003 Extremely high risk, reward timeline not discernable • Chlorine dioxide (ClO 2 ) 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 3 rd party vendors were lined up for custom one-off • production – a prototype was produced Proof of concept needed - market research for product feasibility and • Pulp and paper water treatment application. industry acceptance Early phase of competitive market – options extremely limited • 9

Phase 2: Angel / Client Funding Time Period: 2003 - 2018 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 10

Phase 3: Institutional Funding Time Period: 2018 - current 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 • 11

Summary Ecochlor’s funding mirrored the risks With many regulatory issues now resolved and profiled in the development timeline. deadlines for shipowners fast approaching, the market for ballast water management systems Now, with demand high and the (BWMS) has finally arrived. Ecochlor is strongly company positioned for rapid growth, positioned as a front-runner in the large capacity we are in a strong position to work segment of the industry. This milestone reflects all with institutional investors to bring us the hard work achieved by the staff and our supporters. to the next level. 12

THANK YOU Steve Candito +1 978-298-1463 steve.candito@ecochlor.com www.ecochlor.com 13