ZEN Graphene Solutions - Next-Gen Health Technologies ROI Investor Presentation - Summer 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ZEN Graphene Solutions Next-Gen Health Technologies ROI Investor Presentation – Summer 2021 TSXV: ZEN OTCQB: ZENYF
Next-Gen Health Technologies ROI
TSXV: ZEN; OTCQB: ZENYF
~$250 million market capitalization (no debt)
ZEN is a nanotechnology company focused on next-gen healthcare solutions:
• Prevention: ZENGuard for PPE & indoor air quality markets
TM
• Detection: Aptamer-based rapid detection
• Treatment: Antimicrobial compound as a therapeutic and healthcare product
ZEN ROI Strategy
• Returns from monetizing current market opportunities (ZENGuard )
TM
• Optimizing supply chain near term; full vertical integration longer term
2
• Intellectual Property development with substantial scale and upside optionality
Next-Gen Health Tech Why Nanotech/Graphene?
What is Nanotechnology?
• Research and innovation conducted on atoms and molecules to create new and useful properties
What is Graphene?
• A nanomaterial consisting of a single layer of carbon atoms arranged in a honeycomb lattice that has extraordinary properties
Why is it unique?
Property How it Can Be Used
Extremely high surface Treat Disease – Transporting antimicrobial agents to target viruses, bacteria and fungi
area-to-mass ratio Protection Against Pathogens – Antimicrobial agent on PPE/air filters to reduce transmission; preventative medical use
Impermeable to hydrogen Water & Air Purification – Filters, H2O purification, desalination, gas storage, hydrogen generators, waste management
200x stronger than steel Building Materials Additive – Composite materials & alloys; additive to rubber, plastics, aluminum and concrete
Stretches to 120% of its original
Polymer Additive – Coatings, additives and wearable technologies
size
10x thermal conductivity of
Composite/Polymer Additive – Composite materials, polymers, coatings, concrete, heat sinks/spreaders
copper
1000x capacity of copper Clean Energy - Longer battery life, faster charge times, semiconductors, solar
Nanotechnology and graphene have enormous potential to make the world safer, cleaner and more efficient;
ZEN’s focus is on innovative nanotechnology-enabled healthcare solutions
Next-Gen Health Technologies ROI Strategy
What We Focus On Why It Matters
Returns from Monetizing Our Current Opportunities Cash Generation TM
R Commercializing our current • Significant need and demand for detection and ZENGuard -enabled solutions
intellectual property (IP) • Generates cash flow to support future growth and creates shareholder value
Optimizing Our Supply Chain Production Execution
Long-term vertical integration strategy focused • Ensures competitive, consistent and stable input for our proprietary graphene-based
O on development of graphene production capacity, solutions (i.e., graphite and graphene oxide for coating/compound production)
supply agreements and our 100% owned • A well-established supply chain, production processes and marketing presence in the
Albany Pure™ Graphite deposit gives us an extremely strong footing ahead of potentially tremendous market growth
Future Growth Engine
IP - Building Our Portfolio • There are numerous applications for nanotechnology. We need to understand the
I Positioning ourselves to thrive by developing partnerships most attractive and practical opportunities to ensure we allocate resources and
and securing new IP in high-growth areas of healthcare establish partnerships and develop IP in the right areas
• Protects our ability to serve high-growth markets with unique, proprietary solutions
4R Returns From Monetizing Current Opportunities
TM
ZENGuard Antimicrobial Coating
• We have developed a non-toxic, antimicrobial coating that is 99+% effective against numerous pathogens, including
COVID-19. Initial testing completed at Western University’s BSL-3 ImPaKT facility; 98% effective after 108 days
• Successfully tested against bacteria and fungi as well, with results demonstrating greater than 99.9% efficacy based on
ISO standards. Provides for significant opportunity beyond COVID-19
• Can be utilized on PPE, filtration media (HVAC filters) and other materials such as paper, cardboard etc. as a
preventative ‘catch-and-kill’ mechanism. Global provisional patents filed
Target Market Estimated Size Where We Can Create Value
TM
Personal Protective • ZENGuard on masks, gloves and other PPE to protect front-line workers,
> US $52B1 the public and reduce spread of pathogens (including and beyond COVID-19)
Equipment (PPE)
TM
> US $66B2 • ZENGuard on air filters to kill airborne pathogens in homes, schools,
Indoor Air Quality hospitals and commercial/industrial spaces
1 Source: 2019 estimate per fortunebusinessinsights.com; over $90B in 2027
2 Source: 2020 global HVAC filter estimate of US $12.9B per fortunebusinessinsights.com; 2020 US furnace filter market estimated at US $21.3B per researchandmarkets.com. Management estimates US represents 40% of global furnace filter
demand for illustrative purposes only
5ZENGuard for PPE & Indoor Air Quality Markets
TM
R
Testing & Approvals
• Confirmation from two independent testing organizations that our coating does not inhibit air flow rates
TM
• Masks with ZENGuard successfully passed requirements as a level 1 Medical Device for ASTM Level 1,2 and 3 – the
highest level for surgical masks
TM
• Third-party testing confirmed ZENGuard on masks did not lead to any shedding or skin irritation
• Health Canada is reviewing the application as a priority item with a decision expected soon
Commercialization & Production
• Agreements with Trebor Rx for a first-year minimum of 100M masks/filters and a minimum of 100M nitrile gloves
TM
with ZENGuard
TM
• Significant interest from other potential partners for ZENGuard on PPE and air filtration products
TM
• ZENGuard production capacity (coated mask equivalent):
• Current: ~32 million per month
• Q4 2021-Q1 2022: ~800 million per month
• Engineering company (Bantrel) engaged to design and source equipment for production at industrial scale
6R Disposable Mask Market Opportunity
Assumptions: Market Penetration and
• 1.5 trillion masks being used globally per year 1
• We believe steady state demand could be ~60% of Gross Margin Scenario Analysis
current need or ~930 billion (Illustrative Purposes Only)
2,322 2,786
• We assume gross margin per mask could range 1,393 1,858
from $0.03 to $0.06 $1,000 464 557
232 279 279 372
CAD Millions
139 186
$100 37 46 56
Other Considerations: 28
• Secular shift in societal approach to PPE expected
to support global demand above pre-pandemic $10
levels (hospitality, food, janitorial etc.)
• Governments seeking to build PPE reserves $1
• Increase in aging population globally means a 0.1% 0.5% 1% 5%
higher number of higher-risk patients in the (~930M) (~4.6B) (~9.3B) (~46.4B)
healthcare system and in public Market Penetration Scenarios
• Emerging market usage represents significant (% of global market and # of masks)
growth opportunity
$0.03 $0.04 $0.05 $0.06
per mask per mask per mask per mask
7
1 Source: Estimate per ASC Publications “COVID-19 Pandemic Repercussions on the Use and Management of Plastics” (accessed Jan 2021)R Exam & Single-Use Glove Market Opportunity
Assumptions: Market Penetration and
• 585 billion gloves are needed globally per year 1
• We believe steady state demand could be ~75% of Gross Margin Scenario Analysis
current need or ~439 billion (Illustrative Purposes Only)
• We assume gross margin per glove ranging from $1,000 658 878
439
$0.01 to $0.04 219
132 176
66 88 88
CAD Millions
Other Considerations: $100 44 44
22
• Secular shift in societal approach to PPE expected 13 18
9
to support global demand above pre-pandemic $10 4
levels (hospitality, food, janitorial etc.)
• Governments seeking to build strategic PPE
$1
reserves
• Increase in aging population globally (higher 0.1% 0.5% 1% 5%
number of higher-risk patients in healthcare system (~439M) (~2.2B) (~4.4B) (~21.9B)
& in public) Market Penetration Scenarios
• Emerging market usage represents huge growth (% of global market and # of gloves)
opportunity (Asia is ~80% lower than North
$0.01 $0.02 $0.03 $0.04
America today 1) per glove per glove per glove per glove
8
1 Source: Ansell Oct 27, 2020 Capital Markets Day presentationR Indoor Air Quality Market Opportunity
Market Penetration and
Gross Margin Scenario Analysis
Assumptions: (Illustrative Purposes Only)
• Estimated 2020 air filtration market of US$66.3B1
828 1,105
• Volume assumes average cost per filter of ~US$12 $1,000 552
276
166 221
CAD Millions
83 110 110
$100 55 55
22 28
Other Considerations: 11
17
• Secular shift in approach to air quality and safety – $10 6
especially for airborne viruses like COVID-19 –
expected to support global demand above pre- $1
pandemic levels (hospitals, schools, commercial, 0.1% 0.5% 1% 5%
industrial, residential, air travel) (~5.5M) (~27.6M) (~55.2M) (~276.1M)
Market Penetration Scenarios
(% of global market and # of filters)
$1 $2 $3 $4
per filter per filter per filter per filter
TM
Actively exploring opportunities and partnerships to begin commercializing ZENGuard on air filtration media
1 Source:2020 global HVAC filter estimate of US $12.9B per fortunebusinessinsights.com; 2020 US furnace filter market estimated at US $21.3B per researchandmarkets.com. Management estimates a global furnace filter market of ~$53.3B assuming 9
the US represents 40% of global furnace filter demand for illustrative purposes.R Next-Gen Rapid Detection: How it Works
Simple, affordable and accurate results without discomfort in under 10 minutes
Binding, washing and buffer Sensor inserted Acquire electric readout Insert mobile Result provided
solution for sensor readout into mobile ~2 minutes reader into
5-6 minutes reader smart phone
✓Next-Gen Technology: Newly developed, patent-pending DNA aptamer that recognizes SARS-CoV-2 spike protein
✓Speed: Many other rapid saliva tests require complicated and time-consuming separation, RNA extraction or
amplification, have not been validated with clinical samples or require long assay times (> 1 hour)
10
Note: Process details will be refined as we optimize manufacturing, processing and results outputR Next-Gen Rapid Detection: How It’s Different
How We’re Different Why it Matters
Affordability and less discomfort reduces testing aversion, allowing more frequent testing
Our simple and affordable, electric readout can provide a with fewer risks to other people compared to swab-based methods
Why
Scalability rapid, single-step detection method with high sensitivity
Easier, Affordable Sampling + Less Discomfort + Fast, Accurate Results =
Saliva? using a simple handheld reader and smart phone
enormous potential for widespread usage at home and in numerous public places
Extremely low detection limits (10,000-50,000 copies per ml) This has been a significant challenge for saliva-based testing to date
What
Technology can be used as a platform for development of Ability to detect new variants, other coronaviruses, viruses more generally –
happens Solution like the seasonal flu – and other pathogens using the same technology
new aptamers to detect new pathogens; new aptamers can
post- Longevity be applied to sensors but use the same reader Our technology has the potential for significant value post-COVID
COVID?
11R Therapeutic Market Opportunity
Tony Mazzulli, MD, FRCPC, FACP
Microbiologist-in-Chief & Infectious Diseases Specialist
Professor, Depts. of Lab. Medicine & Pathobiology and Medicine, University of Toronto
We have developed a patent pending graphene-based compound with 99.9% effectiveness against SARS-CoV-2
and other harmful pathogens, including AMR organisms:
▪ Broad-spectrum compound 99.9% effective against viruses, bacteria and fungi – including four gram-positive and nine gram-negative
bacteria with antimicrobial resistance
▪ Viricidal testing against SARS-CoV-2 completed at Western’s Biosafety Level 3 laboratory; antibacterial testing completed at McMaster
University and Mount Sinai Hospital
▪ Testing revealed minimum inhibitory concentration < 1µg/ml to achieve 99.9% effectiveness
▪ Cytotoxicity results recorded no adverse effects on lab animals after seven days of repeated dosing at several thousands times higher
than the MIC; no gross findings at necropsy
▪ Potential for upper/lower respiratory tract infections, digestive tract and topical for eyes, ears, foot care, wound care etc.
▪ ZEN is actively exploring other options to balance commercialization opportunities for our compound, taking into consideration many
factors, including the size of the opportunity, potential partners, anticipated timeline and cost
1
> US $100B
(Total global market estimate for antibiotics, antiviral drugs and antifungal drugs annually) 12
1 Source: 2020 antibiotic technologies market per researchandmarkets.com (US$44M); 2019 antiviral market estimate per statista.com (US$52M); 2019 antifungal market estimate per bccresearch.com of US$14BO Optimizing Our Supply Chain – 2021 Roadmap
Upcoming Milestones
Current expectation; subject to change
Q2 Q3 Q4
Graphite Third-Party Purchases
Current Supply & Procurement
Internal
Construction & Ramp-Up of Capacity
Industrial Scale Capacity Potentially
Graphene Oxide Available
Procurement then Production in 2022
Third-Party Purchases As Needed
TM
Current Pilot Capacity
ZENGuard Industrial scale
Production & Spraying capacity for
Engineering, Construction & Ramp-Up of Industrial Scale Capacity
production and
application
Q4-2021/Q1-2022
✓ We will leverage currently available capabilities – supplemented by third-party purchases – to meet near-term demand for
TM
ZENGuard while we invest in our own internal capacity and integrate our supply chain
13I Intellectual Property – Building Our IP Portfolio
Developing partnerships and securing new IP in high-growth areas
Graphene Enhancement Opportunity Potential Benefits & Applications
• Other personal protective equipment (gowns, footwear etc.)
TM • Antimicrobial surface solutions for healthcare and for high-touch surfaces in public spaces
Prevention: ZENGuard • Potential for antimicrobial packaging
• Potential for broad-based application for reducing risk of pathogen outbreaks
• Aptamer development for other viruses like the seasonal/swine/avian flu, norovirus, HPV
Detection: Aptamer Development • Aptamer development for bacterial testing like E. Coli and potentially others
• Potential for cancer marker detection in the future
• Topical application for psoriasis, acne, diabetic foot and other skin conditions
Treatment: Antimicrobial compound • Potential for ingestion for digestive tract pathogens like C. difficile
• Potential for intranasal and optic applications as well
Academia Government Corporate
14Next-Gen Nanomaterials – Catalysts
• Prevention: Health Canada review of ZENGuardTM-enhanced masks
• Prevention: Commercialization of ZENGuardTM coating for PPE markets (masks &
gloves) & Indoor Air Quality market
• Detection: Additional testing and discussions with potential partners for
manufacturing, marketing and distribution of our leading-edge rapid detection solution
• Treatment: Milestones related to our antimicrobial therapeutic
• Future Pipeline: Continuing to develop high-impact healthcare applications
15Next-Gen Nanomaterials ROI
R•
TM
Expect H2 revenue and cash flow generation from ZENGuard
O•
TM
Graphene oxide and ZENGuard production build out progressing
I• IP – Substantial upside and optionality in high-growth healthcare areas
ZEN ROI Strategy
• Returns from monetizing current market opportunities (ZENGuard )
TM
• Optimizing supply chain near term; full vertical integration longer term
16
• Intellectual Property development with substantial scale and upside optionalityAppendix
Forward Looking Statements
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States
federal securities laws. Forward-looking statements include, but are not limited to, estimates and statements with respect to ZEN Graphene
Solutions Inc. future exploration and development plans, objectives or goals, to the effect that ZEN Graphene Solutions Inc. or management
expects a stated condition or result to occur, including the PEA, expected timing for release of sample analyses and a resource estimate, the
expected uses for graphite or graphene in the future, and the future uses of the graphite from ZEN Graphene Solutions Inc. Albany deposit, the
adequacy of ZEN Graphene Solutions Inc. financial resources, business plans and strategy, and other events or conditions that may occur in the
future. Generally, forward-looking information can be identified by the use of forward- looking terminology such as “potential”, "plans", "expects",
or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be
taken", "occur", or "be achieved". These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of
which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance
should not be placed on these forward-looking statements. The forward-looking statements in this presentation are made as of the date hereof
and ZEN Graphene Solutions Inc. disclaims any intention or obligation to update or revise any forward-looking statements in this presentation as a
result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal
securities laws.
18Capital Structure
TSXV: ZEN
OTCQB: ZENYF
Shared Issued 89,001,363 Expiry
1,305,155 @ $0.50 December 9, 2021
Warrants 1,461,420 @ $0.80 July 6, 2022
867,598 @ $3.00 April 8, 2023
Options 6,873,334 Avg. Weighted price: $1.22
Fully Diluted 99,508,870
19Leadership – Officers/Directors
Greg Fenton, (Chief Executive Officer, Director): is a seasoned investment professional, with a Bay Street career spanning nearly 30
years. He has worked in various capacities with ever-increasing responsibility in both the Canadian banking and investment management
sectors. Greg has been a partner in three investment management firms, heading the Risk Solutions Group at Scotiabank and leading
Liability Driven Investment Group at National Bank Financial. Greg currently leads a company providing balance sheet optimization and
investment services to Canadian and international corporations. His experience spans many disciplines: capital markets, investment
management, actuarial, pension, insurance, accounting, tax and risk management.
Dr. Francis Dubé, O. D., B. Sc. (Director and Executive Chairman): completed a Bachelor of Science at Waterloo, and then obtained
an Optometry degree at the Université de Montréal in 1997. Previously, as an entrepreneur, Dr. Dubé was a director and Co-founder of
Cannacure Corp., a private cannabis company that he saw to a successful buyout of $40 million. As a result of his role with Cannacure, Dr.
Dubé has gained significant experience in strategic planning, fundraising, and capital markets.
Brian Bosse, (Chief Financial Officer, Director): Brian has been a respected professional investor for nearly 30 years with corporate
capital allocation policy being his key business specialty. Formerly Brian served Dundee Corporation’s Goodman & Company Investment
Counsel as portfolio manager of the Goodman Bluespring Fund. He earned an honors degree from the Lazaridis School of Business and
Economics in Waterloo Ontario plus the Chartered Financial Analyst designation. Brian joined ZEN Graphene Solutions in May 2018 as
director and officer following a successful proxy battle.
20Rapid Test Market Overview *
Nasal Plasma Saliva
Rapid PCR Rapid Antigen Rapid Antibody ZEN Aptamer-Based
(Abbott ID NOW) (Abbott Panbio) (BTNX Rapid Response) Antigen Test
1
Sensitivity/Specificity % 93.3/98.4 98.1/99.8 94.6/100 82 /100
Speed < 13 minutes ~15 minutes ~15 minutes < 10 minutes
Testing equipment required; intended for Cassette, buffer, Cell phone, mobile electric reader,
Equipment point-of-care use in healthcare settings collection tube
Cassette, buffer solution, lancet
sensor, other components TBD
2 2
Cost Equipment $4,500-$5,000 $16 per test $19 per test Highly competitive
Note: FDA regulations for sensitivity and specificity are ≥80% and ≥99%, respectively
We believe our combination of accuracy, speed, simplicity, scalability
and affordability is a differentiator based on what is available today
* Comparator data represents a subset of publicly available information for a sample of commercially available rapid test products in Canada
1 Salivasamples for sensitivity tests were provided by hospitalized COVID patients – it is likely their samples contained spike-binding antibodies which inhibited aptamer binding. It is expected that sensitivity
would increase for a randomized clinical population, which is typically where less sensitive saliva-based rapid tests are expected to be less effective.
2 Per rapidtestandtrace.ca 21Rapid Detection Current and Future Demand
>2.6B $23.4B
COVID Tests Administered Globally 2020 Global Rapid Test Kit Market Estimate
https://www.worldometers.info/coronavirus/ https://www.researchandmarkets.com/reports/5238566
• Our experience during the pandemic has highlighted the importance of rapid, accurate testing
• We expect this awareness will contribute to a secular trend supporting adoption of rapid
testing and continued strong demand
• By alleviating the aversion to testing associated with cost and the discomfort of nasal-based
methods, we anticipate testing to become even more widespread further supporting demand
• With more widespread testing and availability of data, we can reduce the transmission risk of
COVID now, and many other pathogens in the future
We believe our technology will play a significant role in this compelling and enduring growth story
22Optimizing Our Supply Chain – Overview
Long-term vertical integration strategy focused on development of graphene production
capacity, supply agreements and our 100% owned Albany Pure™ Graphite deposit
TM
Graphite Production Graphene Production ZENGuard & Compound Production of Graphene-
(not exhaustive)
Enhanced Solutions
PPE
Air Filtration
Therapeutics
• Graphene (varying # of layers)
Overview
• Mined in several countries • Graphene oxide (GO) TM
• ZENGuard applied to material and
• Vast majority of graphite production is • Graphene nanosheets • Antimicrobial agents added to GO provided to customer for final stage of
metamorphic in origin vs. igneous, which • Graphene nanoplatelets
production and distribution
exfoliates better (Albany Pure™) • Reduced GO
• Graphene quantum dots
Our Focus
TM
• Raw graphite mineralization from Albany • Exploring development of GO capacity • Engineering currently underway • Evaluating options for ZENGuard
available for refining • Patent on GO production method for industrial
TM
scale production of application at our production
• Exploring other options for additional • 200 kg of GO in inventory; options for ZENGuard at our Guelph, ON facility in Guelph, ON
supply, including third-party agreements additional availability from third parties facility
• Environmental baseline study and
permitting for our deposit to move
toward extraction 23New Manufacturing Facility – Guelph, Ontario
Newly constructed ~25,000 sq ft of B1
1 industrial zoning in Guelph, Ontario
3-year lease with 3-year option beginning
2 February 1st, 2021
24R&D Facility – Guelph, Ontario
• Graphite purification and graphene production
• Scaling up production capacity
• Graphene products available for R&D and commercial use
• R&D pipeline with interests in monomers, polymers,
metal alloys, corrosion coatings, biosensors along with
the production of graphene oxide and graphene quantum
dots.
25You can also read
