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Corporate Presentation June 2017 1
Corporate Presentation June 2017
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BlueOcean NutraSciences (“BlueOcean”) is listed on the TSX Venture Exchange (TSXV:BOC)
This presentation contains certain forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to the effectiveness of BlueOcean’s business model, future operations, products and services; the impact of regulatory initiatives on BlueOcean’s operations, the size of and opportunities related to the markets for their products; general industry and macroeconomic growth rates, expectations related to possible joint and/or strategic ventures and statements regarding future performance.
The forward-looking statements contained in this presentation are made as of the date hereof. Unless required by law, BlueOcean does not undertake any obligation to update publically or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise The Common Shares of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any securities of the Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this presentation.
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BlueOcean’s Mission:
BlueOcean’s mission is to develop scientifically effective, innovative and sustainable products from Natural Sources, to
improve the lives of its customers.
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THE SUPPLEMENT INDUSTRY An amazing revenue growth engine for the right products!
Founded in 2010 $400M est. revenue in 2016
$1M revenue in 2004 grew to $225M in 2013
Founded in 2001 $135M in revenue in 2011
$50M revenue in 2004 $500M revenue in 2009
during Dr. Marvin Heuer’s tenure as Chief Science Officer
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Parameter Bulk Fish Oil* Bulk Krill Oil** Superior BOC
Bulk Shrimp Oil
Natural Astaxanthin ppm nil 200 8000
Phospholipids g/100g nil 40 40
Total Omega-3s g/100g 36 19 23
EPA g/100g 18 10 12
DHA g/100g 12 5.5 8
Feedstock Source Mostly Not
Sustainable Certified Mostly Not Sustainable
Certified Sustainable Certified***
*Typical 18/12 Bulk Fish Oil; **K-Real Bulk Krill Oil (leading bulk krill oil brand); *** Marine Stewardship Council sustainable certified shrimp shell
BOC Shrimp Oil : 40X more Astaxanthin
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Sport Supplements
$10Bn global sport supplements market Muscle endurance and recovery after exercise are key benefits sought by consumers
BOC’s CURRENT MARKETS
Heart Health Supplements
$4Bn global omega-3 market of which krill oil is $1Bn Dominated by omega-3 products such as fish oil and premium krill oil
Joint Health Supplements
$9Bn global bone & joint health supplements market Inflammation is a primary contributor to joint pain
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Golden Rule of the Supplement Market: CONTINUALLY INNOVATE
New BOC Brands and Packaging Launched May 2017
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BlueOcean’s NFLD Shrimp Oil Potential: $300M
200 MT shrimp oil capacity - $300M retail
revenue potential
$4Bn current retail omega-3 supplements market – just one of the target markets for shrimp oil products
1000 MT current krill oil production - $1Bn current retail revenue
Leverage Shrimp Oil Benefits to Target Multiple Markets 8
Business Case: Expand to All Supplement Retailers
$15 / bottle Sell-in price to Retailer
2 bottles per week for each SKU
in 10,000 Stores
20,000 bottles per week sold per SKU
$300,000 per week in sales per SKU
U.S. $15,000,000 sales per year per SKU
Expand Shrimp Oil Ingredient to over 10 SKUs 9
Online: 60-80% Gross Margins
Retailers: 50-60% Gross Margins
Distributors: 40-50% Gross Margins
Canada
Germany
Purepolarlabs.com
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Exclusive Patent Protected Shrimp Oil
Licensed Neptune’s Composition and Process Patents for Shrimp Oil Exclusivity - Upheld in NA and Australia:
US Patent 8,030,348; US Patent 8,278,351; US Patent 8,383,675; US Patents
6,800,299, 62/063,623, 62/204,971,61/987,539 and Canadian patent CA 2,493,888
Licensed Canzone’s Patents for Use in Capturing and Infusing CO2 for Accelerating Microalgae/Biomass Growth:
US Patent 6,209,855 Gas infusion; US Patent 7,537,200 Controlled Atmosphere
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Ready to Rock and Sell! Set Production Chain
Newfoundland Shell Clearwater Barry Group Quinlan Brothers
Oil Extraction Indfrag Biosciences Vietnam Plant
Encapsulation & Packaging Prime Nutrisource Toronto, Canada
Marketing, Sales, Fulfillment
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BOC’s Experienced Management Team Dr. Marvin Heuer, MD – Chief Executive Officer Former Chief Science Officer at Iovate Healthsciences. Formulated over 200 products, taking sales from $50M in 2004 to $500M in 2009. Formulator of BOC’s finished products.
Dil Vashi, MBA – VP Business Operations Has been with BOC since 2011, initially working with gas infusion then taking the shrimp oil idea from paper concept to finished products. Sam Kanes, CPA, CA, CFA – VP IR, Director Founding director of BOC. Former senior analyst at Scotia Capital. Led BOC capital raise efforts since IPO in 2012.
Gavin Bogle, JD, MBA, MS – Director & Former BOC CEO Former BOC CEO from 2014-2017, taking the shrimp oil idea from paper concept to finished products. Former Chief Counsel at Iovate Healthsciences. Vincent Scalisi – BlueOcean Director Former Chief Marketing Officer at Iovate Healthsciences. Current CEO of InboxFitness.com, a drop ship e-commerce store for fitness equipment and products. BOC’s management and board combined have over 100 years in consumer supplement experience
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Financials
($ in thousands) June 2018
June 2019
June 2020
Gross Sales 2,500 10,000 20,000
Gross Profit 1,250 5,000 10,000
EBITDA B/E 2,500 5,000
GM % (lowest GM) 50% 50% 50%
3 Year Estimates
Item $
Online Marketing (Facebook Ads) 50,000
TV Ads (Target FL Stations) 50,000
Magazine, Newspapers (Advertorials) 50,000
Customer Support & Fulfillment 50,000
100 MT of shell from summer catch 50,000
Capital Required to Accelerate Sales C$250,000
Current Finished Inventory worth US$650,000. Additional shrimp oil in stock to produce US$6.5M of finished goods. 14
Thank You For more information please contact us: [email protected]
416-315-7477 www.blueoceannutra.ca www.purepolarlabs.com
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