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CorporatePresentation
January,2017
CompanyOverviewZIVOBioscience,Inc.(OTCMKTS:ZIVO)developsandcommercializesnutritionalcompoundsandbioactivemoleculescreatedbyitsproprietaryalgalstrains
§ Companyistargetingthefollowingapplications:o DietarySupplements,NutraceuticalsandFoodIngredientso AnimalFeed,DietarySupplements&AnimalDrugDevelopmento Pharmaceuticals
ZIVOQuickFacts:§ MarketCapitalizationof$15M(asofJanuary4,2017)§ Pre-RevenueStatus§ HeadquartersinKeegoHarbor,Michigan(UnitedStates)
§ Near-TermRevenueOpportunity - ZIVOexecutedacollaborationagreementDecember2013withZoetis(formerlyPfizerAnimalHealth),theworld’slargestanimalhealthcompanyforbovinemastitisresearch
§ IntellectualPropertyPortfolio – ZIVOholds 4issuedpatentsandanother9applicationsinprocess
§ OtherLifeSciences -- ZIVOalsoholdsvaluableinnovationsinmetabolictestingforhumansandanimals– WellMetrisisabreakthrough,smartphone-enabledtestingplatformthatprovidesunprecedentedinsightsintohealthandnutrition
PhotocourtesyofArizonaCenterforAlgaeTechnology&Innovation
RecentNews&EventsZIVOhasannounced3majornewseventsrecently,andcontinuestomakeprogresstocommercializeitsworld-classIPportfolio.
GrowingtheIPPortfolio
November17,2016-- ZIVOannouncesthatitreceivednoticeofafourthUSpatentcoveringthenovelcholesterolmanagementproperties ofthebioactivecomponentsextractedfromitsproprietaryalgalculture
NewProteinProductConcept
NewJVinPoultryFeedAdditives
November9,2016– ZIVOunveilsanew,high-proteinveganpowerdrinkconcept containingCompany'sproprietaryalgalbiomassinfinepowder.Asignificantsourceofnon-animal,non-dairy,non-GMOveganproteinanddietaryfiber
December15,2016– ZIVOannouncesanagreementinprinciplewithanimalnutritioninnovatorNutriQuesttodevelopapoultryfeedadditiveforimmunehealth andgrowthpromotion.WorkbeginsinFebruary,2017
AlgaeQuickFactsAlgaeareadiversegroupofaquaticorganismsthathavetheabilitytoconductphotosynthesis
§ Theylooksimilartolandplants,butdonothavethedistinctcellandtissuetypes,suchasstomata,xylem,andphloem
§ Mostrecentestimatessuggests72,500algalspeciesworldwide
§ Manycommercialusesforalgae,including:
o Nutrition - animal/fishfeed,humansupplements,foods
o Medical – usesintopicalcreams,andpharmaceuticalcompounds
o Specialtychemicals – agrochemicals,foodadditives,cosmetics,foodsafetyandmore
ManagementSeniormanagementatZIVOhasexperienceincapitalformation,finance,biotech,biomedicalengineeringandcollaboratingwithlargercommercialentities
AndrewA.DahlChiefExecutiveOfficer&President
• Formerlymanagingmemberof GreatNorthern&ReservePartners,amanagementconsultingfirm providing marketingandbusinessconsultingtobiotech,biomedandITcompanies
• FormerPresidentofDawber&Company,oneoftheoldestandlargestindependentmarketing&consultingfirmsintheMidwest. ExtensiveFortune500clientroster– GM,Ford,AT&T,CompuwareandXerox,amongothers
• AttendedCollegeforCreativeStudies, WayneStateUniversity• Holds three US patents for interactive multimedia and named inventor in eightrecent biomedical patent applications
John B.PayneVice-Chairman,BoardofDirectors
• President&CEOofCompassionFirst,anationwidenetworkofspecialtyveterinaryhospitals.CurrentlyChairman,AmericanHumaneAssociation
• FormerCEOofBanfieldPetHospitals,anationwide800-hospitalchain• Formerly,memberofMarsGlobalPetCareleadershipteamrepresentingover$11billioninanimalhealthrevenuesannually
• Formerly PresidentofBayerNorthAmericaAnimalHealthdivision• MBA,RockhurstUniversity
Management
Amy E.SteffekPhDDirector,Research&Development
• Currently managingallscienceandproductdevelopmentatZIVO• Previously consultedtolifesciencecompaniestodeveloppharmaproducts,medicaldevices,medicalITproducts
• 14yearsofscientificresearchspanningneurology,cardiology,oncology,psychiatryandendocrinology
• PhD inNeuroscience,UniversityofMichigan– AnnArbor• Postdoctoral fellowshipsintranslationalmedicineandneuroendocrinology,UniversityofMichigan– AnnArbor
• Named inventorinseveralbiomedicalpatentapplications
SeniormanagementatZIVOhasexperienceincapitalformation,finance,biotech,biomedicalengineeringandcollaboratingwithlargercommercialentities
Kerry W.WilsonDirector,EngineeringProjectManagement
• Currently managingengineeringandprojectplanningatZIVO• Formerlyadjunctprofessor,UniversityofNotreDame,lifescienceentrepreneurialstudiesandconsultanttoNotreDamestartups
• FormerlyDirectorofEngineering,HandyLab,Inc.andlead developeroflab-on-a-chiptechnologyplatform.
• FormerlyManager,BayerDiagnosticsBusinessDevelopmentandProductManagerforUrineChemistryMarketing
• BAinPhysics,WabashCollege– Crawfordsville,IN• BS inEngineering,ColumbiaUniversity– NewYork,NY
PlatformStrategyTheZIVOBusinessModel
§ TobecomealicensorofdevelopedIPofproprietaryalgaecultures,extractsandderivatives.workingwithtwodifferenttypesofpartners
§ Near-Termpartners- canusetheZIVOIPandgettomarketquickly– inanimalhealth,humandietarysupplementsandfunctionalfoods
§ Longer-Termpartners- pharmaceuticalcompanies
ZIVOCoreIntellectualProperty
§ Proprietary,optimizedalgaestrains§ Patentedprocessofproducingbioactivecompounds§ Nutritiveorbioactivecomponentsextracts,and§ Applicationofthatstrain/extractinsupportinghealthandlongevity
World-ClassResearch&Validation
§ PotentialpartnersandlicenseesrequireproofthatZIVO’snutritionalandactivecomponentsdeliveronclaims
§ Overlastfouryears,ZIVOhasengagedinavarietyofvalidation,safety,interactions,andstabilityteststoprovesuchclaims,andmeetcomplianceregulationssetforthbytheFDA,USDA,EPA,andFTC
PhotocourtesyofArizonaCenterforAlgaeTechnology&Innovation
Food,Farming&theFutureTheCompany’salgalbiomass,secondarymetabolitesandextractsmaybedevelopedintoingredientsforthesemarketverticals
§ DietarySupplement/Nutraceutical
o AccordingtoTransparencyMarketResearch,theglobalnutraceuticalsmarketwillbe$279Billionby2021
o USandworldwideopportunitiesincludespirulina,algae-derivedOmega-3s,algae-derivedastaxanthin,driedkelp,etc.
§ FunctionalFoodIngredient
o Over400good-for-youfoodandbeveragecategoriesneedpowerfulingredientstosupporttheirproductclaims
o Dozensoflicensescanbecreated
§ Pharmaceuticals
o Aspotentialleadcompoundsfordrugdevelopment
ZIVOisindiscussionswithmajorpartnerstoproposejointventures
NewVeganProteinProductConceptInNovember2016,ZIVOunveiledanew,high-proteinveganpowerdrinkConcepttocompeteinveggiesmoothieandveganpowerdrinkcategories
§ VegetableandfruitjuicebeveragecontainstheCompany'sproprietaryalgalbiomass,driedtoafinepowder,providesasignificantnon-animal,non-dairy,non-GMO,antibiotic-freesourceofveganprotein
§ Thisnewproductconceptisintendedtodisplaceothervegetableandsoybasedproteindrinks- asignificantglobalmarketo Unlikesomeothercultivatedalgae,theZIVOstrainisessentially
blandandmixeswellwithsweetorsavoryflavorso Thetwoflavorsindevelopmentfeatureasweet,pomegranatefinish
andtheotheramoresavory,vegetablefinish
§ ZIVOalgaebiomassrepresentsapotentiallyviablealternativetoothersourcesofhigh-qualityprotein,onceapprovedforsaleo Earlyformulationsboastastandout42gramsofplant-basedprotein
per15-ounceservinginacategorywheretheaverageis8orlesso A100- gram(3oz.)portionprovides42gramsofproteinand24
gramsoffiber,whiledeliveringmoreVitaminCthanamedium-sizedorange,andmoreVitaminAthan3-1/2oz.ofbeefliver
ZIVOVeganPowerDrinkvsCompetitionTheZIVOhigh-proteinveganpowerdrinkcomparesfavorablytootherentriesinveggieshake,smoothiemixandready-to-drinkcategories,offeringhigherproteincontent,vitamins,fiberandotherhealthbenefits.
MarketOpportunity
Strongdemandforgluten-free,dairy-free,antibiotic-free,non-GMO,plant-basedproteinvegansmoothies
ZIVOMegatein(12ozserving)* NakedPressed HeartyGreens(12oz)**Protein § 18g Protein § 3g
DietaryFiber § 6g DietaryFiber § 0g
VitaminA § 59%DV VitaminA § 0%DV
VitaminC § 34%DV VitaminC § 25% DV
Iron § 12%DV Iron § 2%DV
Calcium § 9%DV Calcium § 4% DV
*Preliminaryproductspecificationspendingregulatoryapprovalandformulationtesting
**Productspecificationsderivedfrombottlelabeling
FastestGrowingBeverageCategoryThefruitjuice/refrigeratedsmoothiecategorywasthefastestgrowingbeveragecategoryin2015.§ Accordingtothemarketresearchfirm,Technavio,theGlobalsmoothiesmarketwillbe$7Billionby2020.
MarketShare:FruitDrinksandFruitJuices(C-storesales|2015)Sub-Category DollarShare %GrowthY-o-YRTDTea 5.60% -6.60%RTDCoffee 2.70% -10.00%Water 12.80% 4.60%Others 2.20% 3.80%Sportsdrinks 9.90% 2.10%Energydrinks 27.70% 9.50%Fruitdrinks 4.40% 14.30%Carbonatedsoftdrinks 31.10% 23.30%Fruitjuices 3.40% 94.00%Sources:TheNielsenCo.,Dr.PepperSnappleGroupInc.
NakedJuicewasacquiredbyPepsiCoin2007.
Odwalla Inc.wasacquiredbytheCocaColaCompanyin2001
Megatein hastheopportunitytobedisruptiveinthisbeveragecategorybecauseitcontainmoreproteinandessentialvitamins
ZIVOVeganProteinvsCompetitionTheZIVOveganproteindrink/mixcomparesfavorablytootherentriesinproteindrinkmixandready-to-drinkcategories,offeringhighqualityproteincontent,vitamins,fiberandotherhealthbenefits
MarketOpportunity
AccordingtoaEuromonitor 2016ReportonSportsNutrition,thesportsproteinpowderdrinksmarketwillbe$4.7Billionby2020
ZIVOMegatein*(100grams) MuscleMilk**(100grams)
Protein § 43g Protein § 46g
DietaryFiber § 24g DietaryFiber § 7g
VitaminA § 200%DV VitaminA § 5%DV
VitaminC § 110%DV VitaminC § 30% DV
Iron § 80%DV Iron § 90%DV
Calcium § 9%DV Calcium § 50% DV
*Natural,non-concentratedalgalbiomassasingredient**Preliminaryproductspecificationspendingregulatoryapprovalandformulationtesting
*Milkwheyconcentratedwithsolvents**Productspecificationsderivedfrombottlelabeling
HumanHealth- ResearchTheCompany’sproprietaryalgalcultureextractswerefoundtobebeneficialinpre-NDI/pre-INDstudiesasappliedtohumanandhypercholesterolemichamstermodels
§ In-vivotestingofhypercholsterolemiaatWayneStatueUniversityDept.ofNutritionandFoodSciencefoundtestsubjectstreatedwithcultureextractsdroppedtotalcholesterolby32%andincreasedHDLcholesterolcountsby5%instudiesconducted2009-2012
§ In-vitrotestingofhumanHEP-G2andPBMCcelllinesrevealedearlypromiseinaddressinginflammatorycascadesresultingfromlipidperoxidationinrepeatedstudiesatWayneStateUniversitySchoolofMedicineconducted2010-2012
§ Companycommencedisolationandcharacterizationeffortsofbioactivecomponentsin2014aspotentialcholesterolmanagement,autoimmuneandanti-inflammatoryingredientsinhumanfoodanddietarysupplements
§ UponcompletionofsafetytrialsandGRAScertification,ZIVOintendstolicensetheuseofbioactivecomponentsinavarietyofhealthandnutritionapplicationsforhumanandanimaluse
AnimalHealthOpportunityNear-TermFocus– ZIVO’sproprietary,algae-derivedbioactivecompoundswerefoundtobeeffectiveinearlystudieswhenappliedtodairycattleanddogmodels
DairyCows&BovineMastitis
§ AZIVOpilotstudyindairycowsindicatedthattheCompany’salgalculturemaybeeffectiveinsupportingbovinemammaryglandhealth
§ Mammaryglandissuesaffect10%oftheU.S.dairyherdatanygiventime,costingproducersasmuchas$300peroccurrence,peranimal.IntheU.S.alone,productionlossesarenear$3billionannually(1)
Dogs&Osteoarthritis
§ AZIVOpilotstudyindicatedthattheCompany’salgalculturemaybeeffectiveinmaintainingproperjointfunctionandsupportinghealthymusclefunctioninginactivedogsandslowingthedegenerativeeffectsofcanineosteoarthritis.
§ Caninedietarysupplementindustrytops$10billionintheU.S.alone
§ Caninejointhealthsupplementsisa$300millionmarketintheUSalone
(1) DatafromtheNationalMastitisCouncil
AnimalHealthOpportunity– ZoetisCollaborationTheCompanyenteredintoaconfidentialCollaborationandOptionAgreementwithZoetis,aglobalanimalhealthcompany
Zoetis,Inc.istheworld'slargestproducerofmedicineandvaccinationsforpetsandlivestock
§ ZoetiswasasubsidiaryofPfizer,theworld'slargestdrugmaker§ NowanindependentcompanyandtradesasNYSE:ZTS,witha$24BillionMarketCapitalizationandamemberofS&P500Index
§ Operatesin70countriesworldwidewithrecentexpansionsintoSoutheastAsiaandChina
Theagreementwascreatedtostudytheprevention,treatment,andmanagementofbovinemastitis
§ IntheAgreement,ZIVOgrantedtoZoetisanexclusiveoptiontonegotiateanexclusivelicense
§ Uponcompletionofacollaborativestudy(whichisinprocessandwillbecompleteduponadequatefunding),theAgreementprovidesfora90dayexclusivityperiodforevaluationofresultsand,basedonthecounterparty’sdesireforanexclusivelicensethereto,90daystoconcludeanexclusivelicenseagreement
NewJVOpportunityinPoultryFeedAdditivesZIVOandNutriQuest haveenteredintoanagreementinprincipletodevelopandmarketanimalnutritionproductsforimmunehealthandproductivityenhancement
§ Jointlyconductproof-of-conceptstudiestosubstantiatenutritionandhealthclaims§ ZIVOtoproduceandNutriQuesttomarketapoultryfeedadditive,followedbyswineandcattle§ NutriQuestoperatesin20countries,providingnutrition/healthsolutionstopoultryandporkproducers
MarketOpportunity
Launchacategory-dominatingproductinarapidlygrowingsegmentoftheglobalanimalfeedadditiveindustry
NutriQuest andZIVOPotentialPartnershipStructureZIVO Bioscience,Inc. § Funds proof-of-conceptpoultry,swinestudies
§ Responsible forproductformulationandproduction
NutriQuest,LLC § Conducts proof-of-conceptpoultry,swinestudies§ Marketsanddistributes finishedproductsglobally
ZIVOandNutriQuesttosplitgrossmargin50/50overcostofgoodssold
PoultryFeedAdditiveMarketLandscape
MarketOpportunity
Theglobalanimalfeedadditivemarketisexpectedtoreach$27billionby2021ataCAGRof6.5%peryear1
ZIVOanimalhealthproductsarepositionedasimmunehealthandproductivityenhancers
§ Non-starchpolysaccharidesareavaluablepromoterofdigestivehealthandimmuneresponse§ Producersareabletocutbackontheuseofantibioticsinfeedanduselower-costfeedingredients
PoultryFeedAdditiveFactsGlobal PoultryAdditiveMarket § Expected toreach$7.8billionby2018
GlobalPhytogenicFeedAdditives § This segmenttoreach$675millionby2020
LargestMarketsforPhytogenics § EU andUSlargestpurchasersofphytogenicfeeds
ZIVOPoultryFeedAdditive § Potential tobecategoryleader
(1) AlliedMarketResearch,"World AnimalFeedAdditives Market-Opportunities andForecasts,2014-2021”.
ZIVOandNutriQuest intendtoobtainregulatoryapproval,securebiomassproductionofftakeagreementsandinitiallyenterthemarketwithasinglepoultryfeedadditiveproduct
AnimalHealth– ResearchTheCompany’sproprietaryalgalculture,itsextractsandisolates,arefoundtobeeffectiveinpre-NDIstudiesasappliedtodairycattleanddogmodels
§ In-vitrotestingofprimarybovinemammaryepithelialcellsin3DcultureatUniversityofWisconsin-MadisonDept.ofDairyScienceindicatedenhancedimmuneresponsewhencellswereexposedtoinfectivepathogensresponsibleforbovinemastitis,2013-2014
§ ExplanttestingofcaninejointtissuesatUniversityofMissouriComparativeOrthopaedicLaboratoryhasindicatedtheCompany’sbioactivecompoundsmayslowthedegenerativeeffectsofcanineosteoarthritis,2014
§ DairycowmastitisinvivopilotstudyatUC-Davisyieldedveryimpressiveresultsincombattingmycoplasmabovis.AspartofitsongoingcollaborationagreementwithZoetis,formerlyPfizerAnimalHealth– world’slargestanimalpharmacompany,theCompanydeliveredapilotstudyreportinspring,2015
ZIVOtoconcludesafety/efficacytestinginordertoobtainregulatoryapprovaltoformulateandmarketproducts.Dairycattleandpoultryarethetwoinitialtargetspecies
AcquiringOtherIntellectualPropertyAcquiredassetsofmetabolictestingcompanyinAugust2013– WellMetrisisasubsidiarycurrentlyinFDApre-submission,preparingformarketlaunchandactivepartnering
§ WellMetrisdevelops,manufactures,marketsandsellsWellnessTestsforhumansandanimals
§ TheWellnessTestsareintendedtoprovideindividualstheinformationandopportunitytooptimizetheirhealthandidentifyfuturehealthrisksortoprovideinsurers,employersandhealthcareproviderstimelyinformationtointervenewithwellnessprograms,fitnessregimesorotherpreventativemeasures
§ ZIVO/WellMetrishavefiledanddraftedanadditionaleightpatentapplications
Capitalization/OwnershipTableCompanyhasashareholderbasethatbelievesinZIVO’snear-termandlong-termprospects
OwnershipTable (asofOctober13th,2016)Holder #ofShares %OfCSODirectors&Officers 24,646,415 18%PublicFloat 111,570,361 82%Total 136,216,776 100%
CapitalizationTable WeightedAverageSecurity CommonStockEquivalentHeld Conversion/ExercisePriceCommonStock 136,216,776ConvertibleDebt 102,122,573 $0.12Warrants 29,267,488 $0.10
FullyDilutedSharesOutstanding 267,606,837
UpcomingMilestonesManagementofZIVOlooksforwardtoannouncingoverthenextseveralmonths,thefollowingtypesofnewsannouncements,pendingavailablefunding
§ ZIVOtoconcludethefinalphasesofitscollaborativestudywithZoetis,andbeginnegotiatinganoption/licensingdeal
§ ZIVOconductingsafetystudiesforhumanFDAapprovalofitsalgalbiomassandextractsasfoodingredientsanddietarysupplementingredients
§ ZIVOconductinganalyticstudiesatUniversityofGeorgiatofullycharacterizetheactiveingredientsinitsproprietaryalgalextract
§ ZIVOtoconductproductdevelopmentwithNutriQuestLLCtomarketalgae-basedpoultryandpigfeedingredients
§ ZIVOlookstoexpandproductioncapacityinsouthernCaliforniaorSouthwestareas
InvestmentHighlights
§ $13M(1) Equity Valuerepresentscompellingbuyingopportunity
§ Near-TermcommercializationopportunitywithZoetis–pendingstudy
§ Majoropportunityinhumanhealth/ nutraceuticalproductionbeingpursued
(1)EquityValueasofJanuary4,2017
CorporatePresentation– January,2017
PleaseContact:
ZIVO Bioscience,Inc.2804OrchardLakeRoadSuite202KeegoHarbor,MI48320Office:248.452.9866ext.150Email:info@zivobioscience.comCorporateWebsite:www.zivobioscience.com
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