hey buddy, can you spare a $100 million?

how to convince successful financiers to give you

millions of dollars in a project doomed to fail!

or

Michael PolonskyApril 19th, 2006

I love love loveentrepreneurs life sciences canada

high quality

information

title here

generates long lasting, defined, effective, profitablerelationships

power of a narrative

which came first?

hungerno hunger … no plot … no one cares

Underlying Value Propositiondaysminutes

DAC™:PeptideNative Peptide

Coronary Heart Disease

20%of all deaths

oneNumber

killer!

B R E A K I N G T H R O U G H

FORTUNE MARCH 22, 2004

2

6 millionpatients in the worldAnnual incidence: 700,000

arrhythmias 1 in 4 adults will get AF (age 40+)

* Wang et al. Circulation: Journal of the

American Heart Association. August 2004.

AF Incidence

evidence evidence evidenceremember: high quality information

B R E A K I N G T H R O U G H

50 YEAR CANCER BARRIER

Heart disease

Cancer

600

500

400

300

200

100

0

1950 1960 1970 1980 1990 2002

Age-adjusted death rates per 100,000-population

FORTUNE CHART/SOURCES CDC3

Top 3 drug categories 2004 annual sales

5 blockbuster

Cytostatics(Cancer)

Antiulcerants(GI tract)

Cholesterol & triglyceridereducers

World’s Largest Drug Market

drugs$23.8B

$25.5B

$30.2B

}

Current treatment drawbacks

drugs heat ablation

treats symptoms only

30 – 60% effectivenessdiminishes over time

serious side effects

used in <3% of casesonly when drugs fail

high procedural risks:PV stenosisThrombosisEsophageal perforation

Healthcare ramifications and risks

1

2

3

4

>15%

>20%

415,000 (U.S.)

US$6.6 billion

leading cause of stroke

leads to chronic heart failure

leading cause of hospitalizations

cost to healthcare

* Donald M Lloyd-Jones, Md, ScM, FACC.

Medscape Cardiology 8 (2). 2004.

no practical solution!

the billion dollar slide

No one invests in hyper growth stories to double their money

“you have to show them the 10 bagger”

- Michael Denny

B R E A K I N G T H R O U G H

paradigm marketcurrent expected

$140 M $126 M $3 B

aGvHD current AlloSCT

aGvHD other cancers

Blood disorders

Solid tumours with GVT

Autoimmune life-threatening

TheraluxTM Market Opportunity

17

NB1011 Market Opportunity

B R E A K I N G T H R O U G H

$1.0B

Lung (NSCLC)

Breast

Stomach

Small bowel

Ovarian

Bladder

Colorectal

Lung (NSCLC)

Breast

Stomach

Small bowel

Ovarian

Bladder

Colorectal

Initial MarketEnd Stage

Paradigm ShiftFirst Line Treatment (with TS over expression)

$4.7B

25

High TS patient

54 million

low HDLAmericans with

There are

AF Business OpportunityUntreated Pool New Cases/Year

2.2 million 160,000

2.1 million 145,000

4.3 million 305,000

>$2 BillionAnnual Business Opportunity

at last, your passion…

valueproposition

solution to hunger

value

“if only they understood me”

evidence evidence evidenceremember: high quality information

23

Our Customers: Leading U.S. HospitalsOur Advanced Neuro-Diagnostic Instruments are used in over 1,300

hospitals in the United States including 6 of the top 10 Neurology and

Neurosurgery Hospitals

Positive Phase I Results

Safety andtolerability established

• 3 phase I trials

• Single and multiple dose

• 65 healthy volunteers

• Blood chemistry within

normal ranges

• No reported significant

adverse events

CRD5 Rapidly Increases HDL

Crestor(Statin)

Niacin - ERCRD5

Poorly toleratedLow market share

Levels still risingNon-optimizedformulationHealthy volunteers

% incre

ase in H

DL

Arctic Front: Encouraging early results

> 84% AF free

> 95% reduced burden & AF free

no safety concerns!

20 patients / 2 centers (rev 1)

75 patients / 6 centers (rev 2)

>98% acute success

Neuradiab

MATUREPRODUCTCANDIDATE

R&D invested by NIH grant

/ foundation funding

60

Progressive survivalbenefit demonstrated

7

Established safety profile

193

million

trials

patients

1.

2.

3.

$

27

Neuradiab Outcomes

Clinically compelling difference

42%Increase in survival =

1980 to

2004

2005

91Surgery + Radiation + Temozolomide + Neuradiab

Surgery + Radiation + Temozolomide

Surgery + Radiation

Survival in weeks

75604515 30 105900

weeks

28

competitive landscape

be honest/humble - don’t be cavalier

In all likelihood, the person across from you

a) has an opinion

b) knows more than you

respect other interpretations of the truth

Competitive Landscape - Surgical

Only 1 of “big 5” in the game today Only 1 start-up in the game

AtriCure (20-25%)bipolar (RF)

Medtronic (30-35%) bipolar (RF)

BSx (10-15%)unipolar (RF)

Guidant (10%)

AFX (Microwave)

St.Jude (pre-commercial)Epicor (HIFU)

J&Jno initiative

CryoCath15-20%

don’t forget

milestones

request for cash

current shareholders

financings to date

IP

Milestones

Q3 2005 Q4 2005 Q1 2006

X

X

X

X

X

X

U.S. sales partner

Installed in 25 U.S. hospitals

Initiate studies for expanded indications

Initiate North American multi-centre trial

Initiate combo trial with multi-national partner

File for Canadian and European approval

SPY System

OPTTX System

Investment Opportunity

– Launching

commercial platform

– Expanding content

partnerships

– Developing molecular tests

– Scaling quality manufacturing

Seeking

in financing to drive the business forward

$ million51

34

Financing History & Shareholders

• MDS Capital

• Covington Capital

Convertible

Subordinated Debt

C$5MDecember 2003

C$26MTOTAL

• MDS Capital

• Covington Capital

• Genesys

• Temple Ridge

• Management

Series A Preferred Shares

C$21MApril 2001

ShareholdersTypeAmountDate

closing thoughts

show a

little leg …

speed dating

… move on

(20 – 30 slides) (never turn down a meeting)

…transacts!

generatingearnedattributes

TALKlike a person

be authentic!

STOPthe bullshit

how do you get to Carnegie Hall?

100%of zero is zero

dilution

Think

big!!!

if I had only one slide

need expressed: hunger

need addressed: value proposition

market opportunity: greed

thank you