Creating Value from Natural Compound Extraction

Creating Value from Natural
Compound Extraction
May, 2014
Disclaimer
The information contained in this presentation is provided by Radient Technologies Inc. (“Radient”) for
informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of
an offer to issue, securities of Radient or other financial products. The information contained herein is not an
investment or financial product advices and is not intended to be used as the basis for making an investment
decision. The views, opinions and advice provided in this presentation reflect those of the individual
presenters, and are provided for information purposes only. The presentation has been prepared without
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No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or
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arising from the use of the information contained in this presentation.
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circumstances or management's estimates or opinions should change except as required by law. The reader
is cautioned not to place undue reliance on forward-looking statements.
2 What do we do?
Demand for natural ingredients across many products – from
cosmetics to food to pharmaceuticals – is increasing.
The current method of obtaining compounds from natural
sources has seen little change in over 40 years, and remains
slow and expensive.
Radient disrupts the status quo, and is capable of obtaining
natural compounds in minutes vs. hours, and at significantly
lower cost.
3 Company Highlights
Patented technology platform and proprietary know-how in the extraction of natural compounds and ingredients,
across multiple verticals including pharmaceutical, food/nutritional and personal care ingredients.
Superior Technology: Microwave Assisted Processing (“MAP”)
• 
Outperforms conventional extraction at all levels:
–  Significantly increases compound yields and purity.
–  Reduces extraction times from over 8 hours to under 30 minutes.
–  Less waste, lower energy use, lower emissions, and less solvent usage.
Proven, Patented Technology across a Large Product Pipeline
• 
Over 40 cases of successful extraction in every commercially relevant class of natural product.
• 
Holder of three process patents in the extraction of natural compounds.
Diversified Customer base Combined with Large, Established Markets
• 
Excellent relationships with a number of Fortune 100 customers
• 
Over $250 billion in market opportunities available to Radient across its targeted markets
Revenue Model: High Margin Manufacturing, Proprietary Products, and Licenses
• 
Opportunity to realize margins of 50%+ with exclusive manufacturing agreements
• 
A suite of proprietary, niche products generating 50-60% margins due MAP manufacturing efficiencies
• 
Initial licensing fee for design and installation of customer-specific MAP platform including capital equipment,
followed by recurring license/support/maintenance payment.
4 +$250B Opportunity, Multiple Verticals
1) 
2) 
3) 
4) 
Pharmaceutical
ingredients from natural
source Æ
Food and nutritional
ingredients Æ
Personal care active
ingredients Æ
Natural Ingredients for Pharmaceuticals and for the Food Industry. Published by SIPPO and ‹CBI›, Zurich 2005
Pharmaceutical Price Controls and Innovation Incentives: A Fifty-year U.S. Debate Coming to a Head? Medical Progress Today, October 2011
Regulatory: FDA Unveils Biosimilars Guidance. The Burrill Report, February 2012
Life Sciences and Materials Sciences. DSM at a glace. Royal DSM N.V., Fact book, February 2011
5 The Core Radient Solution
Solvent phase
MAP™
Microwaves
Biomass
Conventional solvent extraction is
a diffusion-driven process: relies
on concentration gradients
MAPTM causes instant in-core heating
creating a pressure-driven process
6 MAP Technology is Superior on all Levels
Radient
MAP Technology
Conventional
Extraction
Mechanism
•  “Pressure-enhanced” mass
transfer
•  Mechanism is diffusion
Process
•  Microwave energy is
selectively absorbed by the
residual water present in the
biomass cells
•  Concentration gradient of
active in biomass vs in the
solvent is the driving force
Radient
Advantage?
Speed
•  Results in rapid pressure
buildup within cells leading
to a pressure-driven mass
transfer of actives
(under 30 min)
•  Diffusion is slow,
particularly as the active
becomes more concentrated
in the solvent (+8 hours)
ü
Extraction
•  Extraction is very fast and
not limited by an
equilibrium state – transfer
continues as long as energy
is applied
•  Eventually reaches a
saturation point
ü
Effectiveness
•  Higher yields, shorter
extraction times, reduced
solvent requirements and
fewer extraction stages
•  Requires high solvent
ratios and multiple
extraction stages to achieve
reasonable recovery of
actives
ü
7 Facilities: Edmonton Plant
• 
Commissioned January, 2014.
• 
5 tonne per day throughput, 20,000 square feet
• 
ISO / GMP compliant
Facility
MAP Production Unit
8 9 10 Development Process
Feasibility
Scale-Up
Partnership
Radient reduces risk to its clients through the application of a proven three stage phased
business development process:
3
1
Proof-of-Concept to
client-defined
product
specifications
Technology license
or joint venture
2
Demonstrates scale
and optimization via
larger volume pilot
testing
3
Manufacturing
agreement
11 Experienced Management Team
Denis Taschuk, CA, President, CEO & Director
• 
+25 years of experience including public company management/strategy, new market
development, manufacturing, finance and tax
• 
Previously CEO of JAG Flocomponents LP and CFO of Cytovax Biotechnologies Inc.
Randy Fries, CA, Chief Financial Officer
• 
+20 years of business experience; provided M&A, restructuring and consulting services through
Fries Financial Consulting Ltd.
• 
Former CFO of PetroCorp Group Inc.
Steven Splinter, PhD, Chief Technology Officer
• 
Radient Founder with +10 years experience with microwave-assisted chemistry
• 
Previously Director of Chemical and Environmental Processes at BC Research
• 
Expert in interfacial chemical phenomena – Ph.D. in Engineering Science in 1994
Stéphane Gagné, MBA, Director, Strategic Partnerships
• 
+20 years of experience in the fields of cosmetics, nutritional supplements, pharmaceutical
products and active ingredients
• 
Previously VP Sales and Marketing (Asia) and Director Sales and Marketing (Nutrition) for Atrium
Biotechnologies and Director Sales and Marketing for Aeterna-Zentaris
12 Strong Independent Board of Directors
Armand Lavoie, BSc., MBA, Chairman
• 
Managing Director of Foragen Technologies
Mike Cabigon, B.Comm., Director
• 
Managing Partner, Foundation Equity
Dr. Hans Black, Director
• 
Chairman of Interinvest Corp. and Wi2Wi Inc.
Wolfgang Muhs, PhD, Director
• 
• 
President & CEO Raylo Chemicals (Retired)
Chairman of Innovotech Inc. and former Executive of LaPorte Chemicals and Degussa
Harry Kaura, Director
• 
President, Amnor Group
Prakash Hariharan, P.Eng., MBA, Director
• 
Former Portfolio Manager for Front Street Capital
Steven Dauphin, MBA, Director
• 
Co-founded Bonaventure Capital and Fidelis Capital
Ramasamy Venkatesh, Director
• 
Director, Gencor Pacific Inc.
13 Contact Information
Radient Technologies Inc.
8223 Roper Road NW
Edmonton, Alberta
T6E 6S4
www.radientinc.com
Denis Taschuk, CA
Chief Executive Officer
Tel: 780-465-1318
Fax: 780-465-1381
[email protected]
Mike Cabigon
Director
Tel: 780-937-8464
[email protected]
14 Appendix: Case Studies
Case Study 1
PHARMACEUTICAL INTERMEDIATE
• 
Target alkaloid in existing marketed product for treatment of pain
• 
Market segment is currently over $10 billion
• 
Significant bottleneck on extraction for production at single facility
which provides ingredient to over 15 products
• 
Client hoped for 15% increase in rate of extraction using MAP™
–  Radient demonstrated 2X (and up to 10x) increase
• 
Currently negotiating License Agreement
16 Case Study 2:
CAROTENOIDS: Beta Carotene, Astaxanthin
• 
Carotenoids are sold in natural products, nutritional supplements and
aquaculture markets
• 
Radient developing proprietary biomass for products to control input supply
• 
Beta carotene (BC) Æ Current market of $261MM, growing at 3.1%
• 
Astaxanthin Æ Market of $226MM growing at 1.4%
• 
Negotiating Supply Agreement
17 Case Study 3
ANTIOXIDANTS
• 
Completed feasibility study Æ Anti Aging Agent
–  From leaves of unique tree in North Africa, widely used in cosmetics
• 
Confirmed second project Æ Mushroom Spore Extract
–  Used in creams as anti-aging agent
• 
First 2 projects Æ Estimated Purchases of $2MM-$4.5MM annually
–  Radient to manufacture and ship for final formulation
• 
Negotiating preferred development partner terms
–  Expect 3-5 projects / year
18 Proprietary Products
SDG* - Lignans from Flax
SDG Health Benefits
• 
Menopause, bone health, prostate health, hair loss, acne
• 
Estimated Market Size: $50 Million (Flax oils significantly larger)
Project Objectives
• 
Existing product on market: 20% purity
• 
Target product: >35% purity
• 
È costs for existing lower concentration product
Radient Solution
• 
>65% purity achieved, reducing filler
• 
Novel process developed based on MAP
• 
Could expand market from vitamins & supplements to Food and Drinks
*secoisolariciresinol diglucoside
19 Proprietary Products
Carnosic Acid from Rosemary
Carnosic Acid Health Benefits
• 
Powerful antioxidant, preservative, anti-carcinogenic, antiviral
• 
Rosemary as a Food Preservative Global Market: $500 Million
Project Objectives
• 
Maximize purity / concentration of main antioxidant marker, carnosic acid
• 
Maximize recovery of available antioxidant
• 
Improve stability against degradation
Value Achieved: Improved Product / Reduced Cost
• 
Ç purity in crude extract Æ From 15% to 30%
• 
Ç recovery of active Æ From 80% to >95%
• 
È extraction time Æ From >8h to 30 min
• 
Improved product by reducing degradation during processing thus increasing “flavor”
20 Proven Technology
• 
Over 40 feasibility studies completed for every commercially-relevant class of natural products
•  Essential Fatty Acids (borage oil)
•  PUFAs
•  Saw palmetto
•  Flax Æ Lignans (SDG)
•  Sennosides
•  Rosavins
•  Edible vegetables oils (flax,
canola, soybean)
•  Terpene acid glycosides
Lipids
Glycosides
•  Green tea Æ Polyphenols
•  Rosemary herb Æ Carnosic acid
•  Blueberries Æ Anthocyanins
•  Microalgae Æ Carotenoid
•  Taxus Æ Paclitaxel
•  Paprika Æ Carotenoid
•  Seaweed Æ Polyphenols
•  Vanilla beans Æ Vanillin
•  Marigold Æ Carotenoid
Phenolics
Terpenes
•  Cyclopamine
•  Black pepper Æ Piperine
•  Opiates
Alkaloids
•  Rice protein Æ Residual oil
Proteins
Proven Technology – Process
Input Solvent •  Plant Sources •  Leaves
•  Seeds
•  Bark
•  Beans
•  Grains
•  Fresh / Dried
•  Alcohols •  Single Cells
Product •  Lipids •  Ethanol
•  Fatty Acids
•  IPA
•  Oils
•  Alkanes
•  Terpenes
•  Ketones
•  Sterols
•  Esters
•  Carotenoids
•  Algae
•  Mixed Solvents
•  Phenolics
•  Yeast
•  Liquefied Gases
•  Vanillin
•  Fungi
•  Vegetable Oils
•  Polyphenols
•  Other Biomass
Solventless extraction
patent application
filed.
ByProduct •  Less Waste
•  Lower
Energy Use
•  Lower
Emissions
•  Less
Solvents
•  Alkaloids
•  Glycosides
= the majority of industrially relevant natural products 22