SoftOx Solutions AS — Investor Presentation 2020

Apr 2, 2020

Preventing and treating chronic infections

SoftOx Solutions AS A Norwegian MedTech Company listed on Merkur, OSE

Agenda

• Introduction
• Key highlights
• The challenge
• The SoftOx technology
• The solution
• Pre clinical and clinical studies
• Virus and bacteria
• Product portfolio
• Commercialization

4th Quarter 2019

• Key Figures
• Highlights
• Product development

1st Quarter 2020

• Highlights
• Product development

Investment proposition

SoftOx has discovered a unique combination of natural chemicals proven to have superior antimicrobial effect when compared to today's solutions*

• First clinical trial in humans completed successfully
• Secured distribution agreements for hand disinfection (Kiiltoclean/Antibac) and animal health (VESO)
• Cooperation with globally leading universities, and research teams
• Entered the market with the company's hand disinfectant

Removing and preventing infections

*Company information; Filter grown Pseudomonas aeruginosa and Staphylococcus aureus embedded in biofilm

Viral epidemics

• No known cure.
• Vaccines serve as the only solution for viral infections requiring 1-2 years of development.

Antimicrobial resistance

• The ability of bacteria and other microorganisms to resist the effects of an antibiotic/antiseptic.

Biofilm resistance

• Aggregated bacteria often covered by slime (biofilm matrix), acting as a fortress and protecting bacteria from attacks

Nature's ability to fight antimicrobial resistance (AMR) is reinforced

A unique combination

Hypochlorous acid Acetic acid

• The body's natural antimicrobial agent
• Widely used but inherently unstable
• Instantaneous microbial killing effect
• Superior safety profile in efficient concentrations
• Moderate antiseptic effect alone
• Well tolerated, e.g. drinking water

• Long history of use as an antiseptic
• Potentially effective deep within the wound bed
• Good stability
• Retains antimicrobial activity despite contact with organic material (e.g. blood, tissue)
• Widely used as food additive
• Moderate antiseptic effect alone

The SoftOx Technology – the combination effect

• The combination works synergistically, and shows superior effect on microbes
• Does not induce resistance in bacteria. Effective in antibiotic-resistant bacteria (e.g. MRSA)
• Can be customized for specific purposes;
  • » Higher concentration of acetic acid increases the formula's antimicrobial potency (biofilm eradication)
  • » Lower concentration of acetic acid yields a softer sting when applied to wounds (disinfectant, wound irrigation)
• Effectively stabilizes hypochlorous acid

Works on wound surfaces AND beneath the wound bed

The SoftOx Wound Model Success criteria for removal of infections

• Penetrate and kill microbes within the biofilm
• Penetrate and eradicate biofilm within the wound bed
• Microbial resistance must not develop
• Well tolerated

Removal of infections → critical for wound healing

Pre-clinical experiments show promising effects

In vitro in the lab

✓ A safe disinfectant with a unique ability to remove hard-totreat microbes embedded in biofilm

✓ Appears to be significantly more effective than competitors against P. aeruginosa and S. aureus, the most common bacteria in chronic wounds

✓ Did not induce resistance or cross-resistance development towards antibiotics

Animal models

• ✓ No negative influence on wound healing
• ✓ Well-tolerated in full-depth wounds
• ✓ Significant bacterial reduction in wounds

Effectiveness on Pseudomonas aeruginosa¹ Effectiveness on Staphylococcus aureus¹

Effect on bacteria in biofilms

SoftOx

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A hand disinfectant - fully effective on all types of viruses and bacteria, including the novel Corona virus

Benefits

• Improved skin health
• Prevention of hand eczema
• Reduced Hospital Acquired Infections
• Reduced spread of Antimicrobial Resistance.

Fully viricidal & skin friendly hand disinfectant

Product development plan based on the SoftOx platform

Product portfolio

Go-to-market strategy: Hand disinfection 1

• Sales through distribution partners
  • Nordics/Baltics: Kiiltoclean (Antibac), market leader in the region (est. >50% market share)
  • Rest of Europe: In progress
• Premium product, aimed at healthcare workers
• 25-50%⁴ of healthcare workers (HCW) have skin problems on their hands
• Does not cause dry skin with same antimicrobial effect as alcohol
• Planned to be made available in pharmacies, sold directly to large clients and through consumer channels

Market size

18.8 million HCWs in the EU and the US 1,2 Whereof 13.3 million have irritated skin and eczema¹

USD 1,080³ Value of effective prevention of hand eczema per HCW

10

USD 20.2 bn³ Value of hand health market in Europe and the US

Sales channels and target market Healthcare savings and revenue scenario

Market share assumptions: Y1 (1%), Y2 (2%), Y3 (3%), Y4 (5%), Y5 (7%)

1) ec.europa.eu/eurostat/Healthcare_personnel_statistics_-_nursing_and_caring_professionals 2015 & Presentation Prim. Univ.-prof Dr. Robert Strohal, Hospital Fledkirch

2) Center for Disease Control and Prevention (CDC) homepage https://www.cdc.gov/niosh/topics/healthcare/default.html

3) MedValue+, Radbound University Medical Center and Exite International's Panel of 11 KOL/experts – "2019 Health Technology Assessment; SoftOx Hand-wash for Health Care Workers with Eczema"

4) World Health Organization – Guidelines on Hand Hygiene in Health Care

Commercialization strategy Europe

Continued evaluation of other markets

Product lines

Hand hygiene - Antibac ¹

• Distribution agreement with Kiiltoclean the market leader in disinfection for healthcare industry
• Antibac-brand
• Premium non-alcoholic antimicrobial hand disinfection
• Provides access to pharmacies and whole stores
• Targeted sales channels: online stores, direct sales to large corporates and non-medical chain stores
• ➢ Expected market entry in 1H 2020.

Animal health - VESO ²

• Market leader on pharmaceutical products for animal and veterinarian industry in Norway
• Sales and distribution of SoftOx through VESO's platform incl. veterinarians, webshop and pharmacies
• Intentional agreement for future JV on further product development for aqua culture and farming industry
• ➢ Expected market entry in 2H 2020.

Wounds - medical device & drug

• Clear plan to conduct further clinical trials to achieve classification as medical device and medical drug, such as toxicity tests and RCT-studies
• ➢ Expected market entry in 2021 (US) as a medical device.

Revenue from sale of hand disinfectant and wound-solution for animals is intended to finance further clinical development

Clinical trials are intended to be conducted to achieve status as medical device and drug

	Key figures (NOK 1,000)
--	-------------------------

	2019	2018
SoftOx Solutions Group
Total revenue and other income	4 216	4 323
Total operating expenses	24 387	21 609
Operating result	-20 171	-17 286
Net result before taxes	-20 279	-17 466
Net proceeds from equity issues	88 194	600
Net cash flow	70 246	-15 862
Cash and cash equivalents at end of period	71 483	1 237
Outstanding shares, beginning of the period	3 778 650	2 488 500
Outstanding shares, end of the period	7 751 000	3 778 650
Employees, end of the period	11	11

Highlights 4th Quarter 2019

• First- in-human clinical trial of the wound rinsing product, SWIS, completed
• Signed distribution agreement with VESO
• Raised NOK 75 million
• Share issue approved by General Assembly
• SoftOx granted the tax incentive provision "Skattefunn" for 3 years

Highlights 4th Quarter 2019 – Product Development

SWIS & BE wound care products

• Product development according to plan » First clinical study completed successfully
• Notified body approved

SafeDesTM - alcohol-free hand disinfectant

• Tests show fully viricidal effects
• Delays in post market studies in Copenhagen » not expected to influence sales

Effect Vet - animal products

• Wound Irrigation for small pets
• Wound Irrigation in infected wounds.

Production facilities

• Production facilities established » First delivery made
• First sale completed
  • » Antibac Alcohol-free Hand Disinfection "Powered by SafeDes".

Production Capacity

• Existing capacity 5,000 bottles per day
• Scaling up to 15,000 bottles per day .
• May 2020, expected increase to 45,000 bottles per day.

Highlights 1st Quarter 2019 – Product Development

Treatment of infections in the respiratory tract.

• Collaboration initiated by the University of Copenhagen
• SoftOx effects on inhalation
  • » Combat viral and bacterial infections in respiratory tract and lungs.
• NOK 3.5 million allocated to the project.
• Animal studies are expected to take 6 months.

Investment proposition

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Thank you for your attention!