TSXV:DVA
Proprietary Transdermal Delivery Platform for
Targeted Therapeutics
1Investor Presentation September 2017 TSXV:DVA
TSXV:DVA
Forward Looking Statements
This presentation is not, and under no circumstances is to be construed as, a prospectus, offering memorandum, oradvertisement or offering of securities. This presentation is for the confidential use of only those persons to whom it istransmitted or provided by Delivra. By their acceptance of this presentation, recipients agree that they will not transmit,reproduce or make available to any person, other than their professional advisors, this presentation or any of theinformation contained herein.
Certain information included in this presentation, including any information as to future financial or operating performanceand other statements that express expectations or estimates of future performance, constitute 'forward-lookingstatements'. For example, statements about expected market growth, future revenues and profits, product development,product performance, expected timing and receipt of regulatory product approvals and patents, operating costs, andindustry conditions, are all forward-looking statements. Forward-looking statements are necessarily based upon a numberof estimates and assumptions that, while considered reasonable by management, are inherently subject to significantbusiness, economic and competitive uncertainties and contingencies. Forward-looking statements involve known andunknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to bematerially different from the estimated future results, performance or achievements expressed or implied by thoseforward-looking statements, and the forward-looking statements are not guarantees of future performance. Except asrequired by law, Delivra disclaims any obligation to update or revise any forward-looking statements, whether as a resultof new information, events or otherwise.
Readers are cautioned not to put undue reliance on these forward-looking statements, and not to use this document astheir sole source for decision making. Readers are encouraged to seek additional information and independent advice.This presentation contains information obtained by Delivra from third parties, including but not limited to market data. TheCompany believes such information to be accurate but has not independently verified such information. To the extentsuch information obtained from third party sources, there is a risk that the assumptions made and conclusions drawn byDelivra based on such representations are not accurate.
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TSXV:DVA
OUR FOCUS IS TOdevelop new treatments using our unique, proprietary delivery platform to address unmet patient needs
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TSXV:DVA
Using our innovative delivery technology to
addressmulti-billion dollar unmet
medical needs
Built a portfolio of consumer products and prescription productsto deliver topical treatments
Deliver immediate growth with a portfolio of commercialized natural
OTC products+$5 million in revenue
Making Existing Drugs Work More Effectively
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TSXV:DVA
The Benefit of Transdermal Therapeutics
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Pills Plant-based
DO NOT DELIVER drugs to a specific area
DO NOT SURVIVE the GI tract well
FAST-ACTING
TARGETS SPECIFIC AREAS
IMPROVED EFFICACY
SUSTAINED RELEASE
SAFE & STABLE
TOPICAL CREAM BASE
TSXV:DVA
Our Value Proposition
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Use our innovative transdermal delivery
platform for the novel and improved use of consumer and prescription products
Pharmaceutical Portfolio• Pain management, sleep, anxiety• Diabetic ulcers• Scleroderma
OTC Portfolio• Pain management• Nerve Pain• Varicose• Wound Healing
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Pharmaceutical Portfolio
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• Doxycycline is a 50 year-old drug, globally accepted, but is very unstable, oxidizes rapidly
• prLIV-DOX overcomes Doxy’s inherent instability and demonstrates efficacy
• Distributed and promoted through compounded pharmacy since February 2017
• Currently covered by private insurers
• Near-term revenue with 90% margins
Diabetic-wound healing
• Advanced topical formulation of Celebrex™ (celecoxib)
• Improved safety and efficacy profile
• Reduced harmful side effects (cardiovascular and gut upset), as a result of oral delivery issues associated with metabolism in the gastrointestinal tract
• Opens new market opportunity
• Driving prescription sales through compound pharmacy
Inflammatory Diseases
• Signed exclusive licensing deals to co-develop a portfolio of pharmaceutical-grade medical products in a mono-dose format
• Health-Canada approved GMP-contract manufacturing facility for QA/QC testing
• Agreement provides Delivra with double-digit royalties and initial cash payments
• Extended to develop Hemp, Terpene and Flavonoid products
Cannabis-based therapeutics
TSXV:DVA
Cannabis-based Therapies: Market Needs Quality Control
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Regulation and legalization will significantly increase requirements for product safety, consistency and accurate dosing
Stringent regulations will require manufactures to adhere to strict QA/QC guidelines under GMP environments
Development of new formulations for specific medical conditions
Our technology delivers consistent, safe and precise dosing
SleepMoodAnxiety StressPain
TSXV:DVA
prLiv-Dox for Diabetic Wound Care
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Wounds International, 2013 – DFU (Diabetic Foot Ulcer) DPN (Diabetic Peripheral Neuropathy)
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20
40
60
80
100
120
34%
37%
29%
prLiv-DOX250 patients treated
Healed Ulcer Improved No ChangeDiabetes affects 3.5 Million Canadians
TSXV:DVA
OTC Portfolio of Cash-flowing Natural Products
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Also available in natural health stores, independent pharmacies, and professional clinics.
#1 selling natural pain relief
#1 selling natural nerve-pain reliefin Canada
+$5 Million in Revenue
Deep national distribution
TSXV:DVA
Delivered Strong Year over Year Growth
• Increased 2016 revenue by 30% to $3.8M for consumer products
• Q2 72% gross margin
• Significantly reduced 1H operating costs, strengthening cash flow
• Grew market share in most important portfolio
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200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Revenue Gross profit
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12-Month Catalysts
Consumer Portfolio• Grow sales through efficient marketing investment enabling greater efficiency and return by focusing on more dense geographies
• Achieve OTC positive EBITDA
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Pharmaceutical Portfolio• Launch a suite of medical cannabis-based therapeutics targeting pain management under a third-party label
• Drive early support of Liv-DOX with specialists through compound pharmacy sales and drive a clear path to reimbursement