Terragen Holdings Ltd · ASX:TGH
Terragen — Investor Presentation (June 2023)
38 slides from Terragen's investor presentation, Jun 8, 2023
Slide 1: Capital Raising Presentation
Not for release to US wire services or distribution in the United States Capital Raising Presentation 8 June 2023
Slide 2: Disclaimer
Disclaimer Summary information – This presentation (Presentation) has been prepared by Terragen Holdings Limited (Company or Terragen) and contains summary information about Terragen and its activities which is current only as at the date of this Presentation, being 8 June 2023. Terragen may in its
Slide 3: Disclaimer (Continued)
Disclaimer (Continued) Non reliance and disclaimer – This Presentation is of a general nature and contains selected information only and does not purport to be complete or contain all of the information that may be relevant to the opportunity. The Presentation is provided solely for information purp
Slide 4: Table of contents
Table of contents 01 Investment highlights 6 02 Business overview 10 03 Growth strategy 20 04 Equity raising 24 05 Additional information 31 4
Slide 5: Executive summary
Executive summary Terragen is undertaking an equity raising supported by the major shareholder to fund research and new product development Operating update Overview of equity raising • Post the strategic review, Terragen’s focus is advancing studies • Equity raising of up to ~$4.7 million at $0.024
Slide 6: 1. Investment highlights
1. Investment highlights
Slide 7: Terragen investment highlights
Terragen investment highlights Management is committed to leading high growth opportunities and generating shareholder value Compelling value proposition to all stakeholders - Differentiated biological product offering that reduces chemical usage and 1 improves agriculture productivity and methane e
Slide 8: Mylo Value Propositions
Mylo® Value Propositions Mylo® is the only product in the market that offers methane reduction, increases productivity for ruminants and improves animal health and wellbeing Provides productivity and health benefits – Higher milk production, more weight gain and increased feed 1 conversion efficienc
Slide 9: Terragen is lead by a highly capable and experienced team
Terragen is lead by a highly capable and experienced team • Travis was appointed to the Board in May 2020 and appointed as Chairman in July 2020 Travis Dillon • Travis’s career in Agriservices spans nearly three decades, culminating as CEO and Managing Director of Ruralco Holdings Limited Non-execut
Slide 10: 2. Business overview
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Slide 11: Introduction to Terragen
Introduction to Terragen Terragen develops microbial biological solutions to address animal and soil health, productivity and methane reduction Overview Key Products • Terragen utilises its portfolio of microbes in the development, production and marketing of biological products for agriculture, Myl
Slide 12: Timeline
Timeline Signs distribution Completes dedicated agreement with Nutrien Terragen develops research and AG, AG warehouse and Independent study1 original Great Land soil production facility in other agents, expanding notes 7.5% methane conditioner Queensland reach reduction for cows using Mylo® 2009 20
Slide 13: Product overview – Mylo for calves and cattle
Product overview – Mylo® for calves and cattle A next generation natural feed supplement that is proven to help improve calf and cattle health and productivity, elevating financial returns for farmers Overview Mylo® Highlights • Mylo® is targeted primarily at primary production animals such as Reduc
Slide 14: Product overview – Great Land Plus
Product overview – Great Land Plus® A patented liquid biological soil conditioner containing live, naturally occurring bacteria that boost soil health and yields Overview Great Land Plus® Highlights • Great Land Plus® was developed as an effective alternative to Observed significant increase in luce
Slide 15: Production facility
Production facility Terragen has developed a dedicated scalable production facility in Queensland, Australia for Mylo® and Great Land Plus® products Overview Production Facility Highlights • Since 2018, Terragen has maintained a dedicated 575m2 Recently (2018) commissioned integrated manufacturing,
Slide 16: Production process
Production process Terragen’s production process is underpinned by a portfolio of organic microbes and supported by state- of-the-art production processes and equipment Overview Production Process • Terragen produces commercial quantities of microbes that have been selected based on targeted outcome
Slide 17: Scientific research
Scientific research Research, development and collaboration with leading industry partners remains a key priority for Terragen to expand its portfolio of microbes Overview Highlights • Since 2010, Terragen has specialised in biological product Team of 10 scientists dedicated to researching the benef
Slide 18: IP and Proprietary Technology
IP and Proprietary Technology Terragen’s advantage lies in its microbe strains and manufacturing know-how • Genomes of proprietary microbes have been sequenced • Fermentation parameters are trade secret • A compendium of each microbe’s characteristics has been • Blending process (using “wet” or “dry
Slide 19: Clinical study overview
Clinical study overview Terragen has a strong record of published studies in peer reviewed journals Product Description Collaborator Key Takeaways • Methane intensity 7.5% lower than control group Partnership with Ellinbank SmartFarm to explore • Estimated 100 tonnes of CO2 reduction per year per fa
Slide 20: 3. Growth strategy
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Slide 21: Global market opportunities
Global market opportunities Terragen is well positioned to enter international markets and benefit from a marked shift towards sustainable agriculture and responsible consumption Key drivers for alternative farm inputs Total Addressable Market1 Emergence of sustainable agriculture 5% 2% 3% 9% Increa
Slide 22: New product developments
New product developments Terragen is continuing to use its considerable scientific expertise to improve and expand its product offering, with the following initiatives underway Initiative Key Description Status Size of opportunity • Benefits over existing Mylo® product include • Entry into beef feed
Slide 23: The path to commercial success
The path to commercial success Leveraging scientific trials in real-world environments to build a commercial portfolio of biological products As Terragen increases its body of scientific findings, Management believes it will present a compelling commercialisation proposition for partners who have es
Slide 24: 4. Equity raising
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Slide 25: Equity raising overview
Equity raising overview • Terragen is raising up to approximately $3.7 million via a two-tranche institutional placement of new fully paid ordinary shares in the Offeror ("New Shares"), to Professional and Sophisticated investors (“Placement”). The Company will also offer eligible shareholders in Au
Slide 26: Equity raising overview
Equity raising overview • The Company intends to offer eligible shareholders the opportunity to participate in a Share Purchase Plan (“SPP”) and apply for up to A$30,000 of New Shares, to raise an additional $1.0 million. The record date for determining eligibility for the SPP is 7:00pm (AEST) on We
Slide 27: Sources and uses of funds raised
Sources and uses of funds raised Proceeds will be primarily used to fund research and near-term new product developments: • New product research and development — Develop dry version of Mylo® and research into feasibility of higher dose Mylo ® — Further study for methane reduction potential and enha
Slide 28: Summary of key dates
Summary of key dates Trading Halt Tuesday, 6 June 2023 Institutional Placement opens Tuesday, 6 June 2023 Record Date for the SPP 7:00pm, Wednesday, 7 June 2023 Trading Halt lifted and announcement to ASX of the Offer Thursday, 8 June 2023 Dispatch of SPP Offer Booklet to eligible shareholders Frida
Slide 29: Pro forma capital structure
Pro forma capital structure % (on an No. of securities Securities issued in No. of securities Issued share capital % undiluted (pre-equity raising) equity raising1 (post-equity raising) basis) Fully paid ordinary shares Mr. Scobie Dickinson Ward 33,345,761 17.2% 88,335,210 121,680,971 31.1% Other ex
Slide 30: Pro forma Balance Sheet (unaudited)
Pro forma Balance Sheet (unaudited) AUD (A$M) 31 Dec 2022 Adj. for Equity Pro forma as at Raising 31 Dec 2022 Cash¹ 4.34 4.53 8.87 Notes: Trade and other receivables 0.25 0.00 0.25 1. Included cash at bank and a term deposit. Equity Other current assets² 1.60 0.00 1.60 6.19 4.53 10.72 raising assumi
Slide 31: 5. Additional information
5. Additional information
Slide 32: Key risks
Key risks This section discusses some of the risks associated with an investment in shares in Terragen. These risks may affect the future operating and financial performance of Terragen and the value of Terragen’s shares. The risks set out below are not listed in order of importance and do not neces
Slide 33: Key risks
Key risks Company Specific Risks Ownership and protection of Terragen’s business model depends on its ability to commercially exploit its intellectual property. intellectual property Terragen relies on laws relating to trade secrets, copyright and trademarks to assist in protecting its proprietary r
Slide 34: Key risks (cont’d)
Key risks (cont’d) Company Specific Risks Failure to realise benefits from The development and commercialisation of products is expensive and often involves an extended period of time to achieve return on investment. A critical aspect of product research and Terragen's business model is to continual
Slide 35: Key risks (cont’d)
Key risks (cont’d) Company Specific Risks Market acceptance and Ultimately, any products developed by the Company need to find acceptance in the market. Market acceptance depends on numerous factors, including convincing competitor risk potential consumers and partners of the attractiveness of Terra
Slide 36: Key risks (cont’d)
Key risks (cont’d) Company Specific Risks Sufficiency of funding and Terragen has provided an indication of how it intends to apply its existing funds, including funds raised under the Offer. Terragen notes that Tranche 2 is subject to additional requirements for shareholder approval at an Extraordi
Slide 37: Foreign selling restrictions
Foreign selling restrictions This document does not constitute an offer of New Securities of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Securities may not be offered or sold, in any country outside Aus
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