Providing Natural, Plant-Based Biologics for
Sustainable Agriculture
Corporate Presentation May 2024
TSXV: MGRO
OTCQB: MGROF
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Disclaimer
The views expressed herein contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This Presentation should not be relied upon as a recommendation or forecast by MustGrow Biologics Corp. ("MustGrow").
Certain statements contained herein constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions are intended to identify forward-looking statements. Such statements reflect MustGrow's current views with respect to future events and are subject to certain risks, uncertainties and assumptions (known and unknown). Many factors could cause MustGrow's actual results, performance or achievements to vary from those described herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, sought, proposed, believed, estimated or expected. MustGrow does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.
Note that purchasing securities of MustGrow should be considered a risky investment as the securities are speculative in nature and are appropriate only for investors who are prepared to have the capacity to absorb a loss of some or all of their investment.
The securities referred to in this Presentation have not been and will not be registered under the U.S. Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933 and any other applicable securities laws. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, the securities, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
MustGrow Biologics Corp. | 2 |
The #1 thing every farmer cares about is growing a crop, and therefore to do so, protecting it from unwanted pests and disease
Traditional chemical pesticides are unhealthy, and consumers are demanding safer and more sustainable
Technology | Capital |
• 112 Patents Issued | • 51.6MM shares |
& Pending | outstanding |
• Trade secrets | • C$60MM market cap |
• Unique technology | • 2+ years cash runway |
• 21% mgmt. ownership |
MustGrow is disrupting the industry by providing sustainable mustard-based biological solutions to replace banned/restricted synthetic chemicals and fertilizers
TerraSanteTM is a | Markets | Global, Long-Term |
• Biofertility | ||
registered product | Partnerships | |
in key U.S. states, | • TerraSanteTM | |
including California, | ||
and has organic | • Biocontrol | |
certification |
- Soil Biofumigation
- Bioherbicide
• Postharvest Food | Commercial |
Licensing | |
Preservation | |
Agreement | |
with Bayer in | |
EAME |
MustGrow Biologics Corp. | 3 |
Sustainable Agriculture is the Future of Food Security
Increased Regulation on
Synthetic Chemicals…
Sprout inhibitor chlorpropham (CIPC) officially banned by European Union
The ban of CIPC in the EU has been in the works for months and was expected by the industry. It is not easy to find alternatives, though. The big problem is for existing potato storage sites.
- Spudman; June 19, 2019
Yield | Food | Global |
Maximizing | security | Soil |
Alternatives | Health |
- Commitment to Organic
Solutions & Growth
Bayer expects to access more than 100
billion euros in these adjacent markets annually in effect doubling the division's potential market which today stands at more than 100 billion euro for the core portfolio alone. Importantly, by the middle of the next decade, Bayer
envisions shaping regenerative agriculture on
more than 400 million acres, built on the foundation of its leading agriculture input solutions.
- Bayer, June 20, 2023
EU Organic Action Plan - 25% Organic Acres by 2030
On March 25, 2021, the European Commission published the Farm to Fork Strategy Action Plan with a target of 30% of EU land under organic farming by 2030.
- European Commission, March 25, 2021
Large and Growing Global Demand for Natural Biologics (estimated 2030)
Combined (US$324B)
TOTALFertilizer
ADDRESSABLE(US$242B)
MARKET
Pesticide | ||
(US$82B) | ||
BIOCONTROL | SOIL AMENDMENT | |
MARKET SIZE | US$20.4B | US$15.5B |
GROWTH RATE | 12.4% | 10.5% |
INDUSTRY | • Replacements for Synthetic Pesticides | |
DYNAMICS | and Fertilizers needed |
- Organic demand / acres growing
- Soil and environmental health are critical
MustGrow Biologics Corp. | 4 |
MustGrow - Unique Technology in Agriculture
MustGrow is providing a natural, organic agriculture technology in many markets: Soil
Amendments & Biofertilizers, Soil Biocontrol, and Postharvest Food Preservation
Why is
MustGrow's
technology unique?
Safe and Organic1- MustGrow's technology is non- hazardous, eligible for use in organic production, and has minimal worker safety, bystander or environmental concerns
Positive Soil4Health - natural organic breakdown allows for positive soil microbiome growth
Economical2- potential to be priced competitively with conventional alternatives Scalable - low-riskcommercial production can be scaled up for use on many acres
Low Environmental5Impact - low water solubility potentially limiting watershed runoff
Flexible - 3can be used in a variety of existing application systems and for numerous crops
Effective and6Efficient - offers biological soil health, fertility, disease and pest control comparable to synthetic agriculture fertilizers and chemicals while being more efficient compared to cover cropping or mustard meals
MustGrow Biologics Corp. | 5 |
Disruptive Solutions Across the Agriculture Sector
NEAR-TERM PRODUCTION | R&D AND TRIALS |
Soil Biocontrol | Biofertility | Postharvest Biocontrol | Other Biofertilizers | |
& Food Preservation | ||||
Biocontrol technology derived | Mustard-based organic | Suppressing sprouting and | Preplant soil biofertilizers for | |
from mustard seed that has | biofertility product that feed the | treating disease and pathogens | yield enhancement | |
pesticidal, fungicidal and | soil microbiome | for storage and food | ||
herbicidal properties | preservation markets | |||
INITIAL TAM (2030 - USD) | $17.5B | $8.0B | $2.9B | $7.0B |
Registration Work Ongoing in | Registered in key U.S. states | R&D | R&D | |
STAGE OF DEVELOPMENT | North America for Preplant | including California | ||
Biopesticide | ||||
R&D PARTNERSHIPS | BioAg Production Strategies | Bio Ag Production | ||
Strategies | ||||
COMMERCIAL | G.S. Long Company | - | - | |
PARTNERSHIPS | ||||
INITIAL BRANDS | TerraMGTM | TerraSanteTM | ||
MustGrow Biologics Corp. | 6 |
Global Partnerships Validate MustGrow's Potential
Commercial and R&D partnerships across high quality counterparties
R&D partnership in
preplant soil biocontrol
for Canadian canola
and pulse crops
R&D partnership in
preplant soil biocontrol
for the Americas
Commercial Licensing Agreement with Bayer
Commercial preplant soil biocontrol in EU, ME and Africa
Global R&D partnership in postharvest and food preservation
MustGrow Biologics Corp. | 7 |
Bayer - Commercial License Agreement
Commercial agreement in place
WHAT:
- Exclusive Commercial License Agreement for preplant biopesticde (TerraMGTM) and bioherbicide
- Region: Europe, Middle East and Africa
- ROFR on global bananas
COMMITMENT:
- MustGrow estimates Bayer will spend US$35-40 million to commercialize TerraMGTM, which includes:
- Upfront and potential milestone payments to MustGrow
- The estimated costs for development & registration work
- MustGrow to receive once registered:
- Royalty
- Cost+ on supply of extract
WHY:
- Current chemicals under significant pressure from governments and consumers across the region
- Organic acres continue to grow across the region (ie: EU's 25% organic production ambition by 2030)
- Multiple countries limiting new chemical registrations, multiple green deals
NEXT STEPS:
- Registration activities in multiple countries
- Additional development work on new formulations
- Goal of first registration in next 3-7 years
- Continued testing in multiple countries in the region
MustGrow Biologics Corp. | 8 |
TerraSanteTM -Sales to Start in 2024
WHAT:
- TerraSanteTM is a biofertility product that is OMRI Listed Region: Currently registered in key U.S. states including California that grow high value fruits & vegetables
MARKET POTENTIAL
EXAMPLE:
- US has ~10 million acres of high value fruit & vegetable crops
- Market Penetration: ~1.5% of total acreage
- Estimated Value Opportunity at Peak: ~US$60 million/yr (retail level)
WHY:
- There is a need for natural, organic fertility products to replace restricted synthetic fertilizers and help build the soil microbiome
- TerraSanteTM provides plant proteins & carbohydrates to feed the soil microbiome & improve overall soil health
NEXT STEPS:
- Other state biofertility registrations to come in 2024
- Sales to start 2024 and ramp- up to peak sales is estimated over several years
- Sales/Marketing Strategy:
- Direct sales initially
- Partnership potential for distribution or white labelling
Source: 3rd Party Ag Market Researcher, MustGrow estimates.
MustGrow Biologics Corp. | 9 |
Potential Initial Production
MustGrow has a viable production plan that can ramp up significantly as the business grows
Equipment and plant layout plans are complete, prefeasibility engineering assessments are done, and MustGrow has strong relationships with contract manufacturers
Overview of Grower Level Revenue Opportunity Estimate
NEAR-TERM | ACTIONABLE | FUTURE | |
POTENTIAL* | |||
Production Capacity | ~1-2MM | ~5-10MM | ~60mm |
(litres equivalent of TerraMGTM) | |||
Potential Grower Level | $15-30MM | $75-150MM | $950MM |
Revenue (USD) | |||
Gross Margin Estimate** | ~60-70% | ~60-70% | ~60-70% |
Implied # of Acres (acres/year) | 25-50k | 130-530k | 5,150k |
Global Share of Global F&V (%)* | <0.05% | 0.12-0.48% | 4.71% |
Potential for initial | Potential for | Future total revenue | |
production with no | expansion with | opportunity | |
CAPEX | no/limited CAPEX | assuming access to | |
capital | |||
- Revenue estimates do not include China, citrus, other berries (just strawberries), sweet potato, celery, cucurbit, ornamental nursery, field crops (just canola and pulses in Canada), banana postharvest biocontrol, bioherbicide, or other applications that are in proof of concept stage.
- Potential for economies of scale not accounted for.
Source: 3rd Party Ag Market Researcher, MustGrow estimates.
MustGrow Biologics Corp. | 10 |
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MustGrow Biologics Corp. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 17:50:02 UTC.