Eden Research : AGM Questions and Answers

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Annual General Meeting 2020 - Q&A<_o3a_p>

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Eden held its 2020 Annual General Meeting today, 24 June, at its offices in Cirencester, where all resolutions were duly passed. Given the COVID-19 restrictions and the fact that the Company's Articles of Association do not currently permit hybrid or virtual meetings, the Company regrettably could not allow shareholders to attend in person or virtually.<_o3a_p>

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The Board acknowledges the AGM is an important opportunity to engage with shareholders and encouraged shareholders to submit questions before the AGM. The Company wishes to thank those individuals who submitted questions in advance of the meeting today. Below please find a summary of the most common questions along with answers. The Company has endeavoured to answer those that would best address the key topics of interest to its wider shareholder base.<_o3a_p>

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To ensure that our shareholders have the latest information, please find a linkhereto our latest company presentation. We look forward to updating the market at our half year results later this year.<_o3a_p>

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AGM Questions and Answers<_o3a_p>

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Question: Can you provide more detail on the Corteva trials and the seed treatment opportunity more widely?<_o3a_p>

Answer: The seed treatment opportunity is part of Eden's efforts to expand its product portfolio; we have noted one of our key achievements in the 2019 year was the initiation of our seed treatment work out in multiple field trials. In January 2020, the Company signed a one-year, exclusive Evaluation Agreement with Corteva Agriscience, the fourth largest agriculture input company in the world that is a publicly traded, pure-play agriscience company created through the combination of the best of DuPont Crop Protection, DuPont Pioneer seeds and Dow AgroSciences. Pioneer is a global leader in seeds for a wide range of crops.<_o3a_p>

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The agreement allows Corteva time to evaluate Eden's Sustaine® encapsulation technology and several formulations in specific biological seed treatment applications within certain major territories and, if successful, will lead to Corteva being granted exclusive distribution rights in the EU, Russia, Ukraine and Turkey. The evaluation is progressing as expected and if successful, the product could generate revenues for the Company of up to c.€40m. We are also exploring additional opportunities with Corteva, and in seed treatments more widely, which we are pursuing both alone and in partnership. <_o3a_p>

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Eden is exploring additional uses of its product in seed treatment because each treatment, which is a coating for seeds, is made up of different components. Each seed coating is developed with different ingredients that perform different functions to advance growth and fight diseases and pests; ultimately giving each seed the best chance of thriving. The Corteva Agreement highlights that Eden's formulations based upon Sustaine have the ability to play an important functional role in seed treatment products. There are many components of seed treatment where our technology can be used to fight fungal disease and control insects and other pests, so we expect the scope of the technology to widen as we continue our evaluations. <_o3a_p>

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Looking ahead, as the ban on the use of microplastics comes into force in the EU in the coming years, industry players will have to develop or source plastic free alternatives making Sustaine very well placed to capitalise on the shift, given that it already a proven and viable alternative. <_o3a_p>

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Question: You estimate the European and American insecticide market for the four pests Eden is targeting to be north of €850 million Euros. What percentage of that market do you expect to supply?<_o3a_p>

Answer:The insecticide market presents a significant market opportunity for Eden. To give some context, there is a high demand for sustainable products that can compete with conventional pesticides on ease-of-use, efficacy, safety, cost and reliability, with a number of existing, conventional pesticides being banned or restricted in use. Eden's successful fundraise of £10.4m (gross) in March 2020 will allow us to bolster our existing product offering, with part of the proceeds to be used for the development of our first insecticide products. New EU rules will have an impact on the availability of many insecticides and fungicides. Eden's effective bio-insecticides targeting a range of key insect pests across numerous crops, are in the early stages of being developed, registered and commercialised on a global basis, allowing Eden to enter into significant new markets. As we have communicated, this is an opportunity where the addressable market in the EU and US alone is over €850 million. It is generally accepted that a market penetration of between 5 and 10 percent of the total addressable market is achievable with products that fully address the needs of growers. However, until the full set of field evaluations are completed, including performance comparisons with the current market leading products, we cannot set targets based upon relevant in-field performance of Eden's products versus the incumbent products.<_o3a_p>

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Question: It appears that Eden has deprioritised its Consumer and Animal Health business lines. Is this the case? <_o3a_p>

Answer: As a Company, we have outlined the three key industry markets for our products as part of our overall business proposition: Crop Protection, Animal Health and Consumer Products. Eden's primary focus is on crop protection, and developing products based on sustainable chemistries to protect high-value crops from pests and disease, with equal or better performance when compared with conventional pesticides. Following the fundraise in March 2020, the Company is well funded and well placed to execute its business plan which involves investing in product trials and marketing authorisations which are required to increase product sales revenue and the geographical footprint in which Eden can operate. The rationale to focus on crop protection is based upon the large market opportunity in biopesticides, which is projected to be worth more than $10 billion by 2025 with an anticipated annual growth rate of 15% per year, and the desire of the Company to leverage its significant investment in IP protection and product registrations. The crop protection industry is undergoing significant disruption triggered by regulatory changes which are, in turn, driven by consumer concerns over pesticides - and therefore, Eden is primarily focused on pursuing product development within this business line. <_o3a_p>

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A current update on TerpeneTech was outlined in Eden's Annual Report. Terpene Tech secured a CE mark for its head-lice treatment product in European Economic Area ("EEA") in 2018, which is the first step in the marketing and sales of such products. TerpeneTech has also established its first channel distribution partner who will target the UK market. The first product launch in the UK is currently expected to coincide with the back-to school schedule in the autumn of 2020. Sales will commence in other countries in the EEA once arrangements with additional distribution partners have been finalised.<_o3a_p>

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The Company intends to increase its focus on its secondary and tertiary business lines through the course of 2020 and 2021 with a view to completing an assessment of its approach to these potentially valuable business lines and to optimising its partnerships. Part of the funds raised in March 2020 have been allocated to advance work in these areas.<_o3a_p>

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Question: Can you provide an update on how Covid-19 and the current political environment in China may impact the busines, and more specifically in regard to entering the Chinese market?<_o3a_p>

Answer:The full impact of the Covid-19 pandemic and the subsequent lockdown is still not known. However, the primary impact for the Company at the moment is the pace of regulatory authorisations due to restrictions in the capacity of regulatory agencies brought about by unconventional working. We do not anticipate that the political environment in China will have an impact on the business in the short term. Long term, this remains unclear as the situation with regard to trade agreements remains in flux.<_o3a_p>

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During this difficult time, the agriculture industry requires a unified effort from all involved in the provenance of fresh food and produce. Eden is committed to continuing to provide biopesticide products and natural microencapsulation technologies to the global crop protection industry through its network of partners across the world. Whilst trading in the first part of the year has been in line with management's expectations, with low direct operation impact from COVID-19 at this time, there remains significant uncertainty regarding the severity and duration of the pandemic and the measures required to combat it. As always, we endeavour to keep our shareholders updated should there be any direct and material impact from Covid-19 on our business. <_o3a_p>

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Question: May you provide an update on Cedroz®? Can we expect more regular updates on the process now you have appointed Dr. Mike Carroll as Head of Regulatory Affairs? <_o3a_p>

Answer:It should be noted that the path to achieving regulatory authorisation is rarely straight. Thus, updates are provided as and when final decisions are taken at the conclusion of the process. This is a deliberate disclosure policy we will continue.<_o3a_p>

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Mike brings a wealth of regulatory experience to Eden and his role is to help navigate Eden through approval processes as quickly as possible. He has also taken significant steps to improve communication with regulators and those in our industry. For example, we recently joined the International Biocontrol Manufacturers Association (IBMA), so that we keep ahead of regulatory developments. Mike's experience will be invaluable when it comes to effectively managing and accelerating the pace of product registrations. <_o3a_p>

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Eastman acquired the rights to register and sell Cedroz in 29 countries. In Europe, Cedroz has now been granted authorisation by Belgium, Malta and the Netherlands, and there are various ongoing applications on the continent. Elsewhere, Mexico has approved the use of Cedroz and applications in Australia, New Zealand and the US are progressing in line with expectations.<_o3a_p>

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