We are in the business of saving lives and returning reason to the pharmaceutical and diagnostic industries.

Transcription

1 We are in the business of saving lives and returning reason to the pharmaceutical and diagnostic industries. Contents are provided for general information purposes only and do not constitute an offer to sell or a solicitation of an offer to buy any Security in any jurisdiction. Further, this does not constitute an offer of products or services with regard to any fund, investment scheme, or pooled investment. Any examples shown herein are purely hypothetical and have been included for demonstrational purposes only. Forentis Fund is available only to accredited investors.

2 The Forentis Ecosystem The use of novel drug development tools will enable researchers to follow the trajectory of the science, which is creating new avenues of research, exploration, and discovery. - PhRMA 2016 Targeted Portfolio Companies Financial Catalyst Spin-Offs FINANCIAL CATALYST

3 Where We Fit The Forentis Ecosystem occupies a number of locations on this Map

4 The NEWCO Strategy The developing ecosystem of discovery, analytics, and commercialization that is comprised by our three target portfolio companies is designed to produce a large number of novel biological solutions, ranging from new drug candidates to new diagnostic products. In some cases, Blueprint Bio, the company responsible for protection, publication and commercialization of these discoveries, may decide to license or otherwise monetize these assets. In many cases, however, we see an opportunity to spin these assets out into a completely new entity. This can multiply the value of each asset.

5 The NEWCO Strategy In each case, the new entity will be founded by the relevant parties. This would include Blueprint Bio and Emerald Logic. Research and joint venture partners would also be named as founders and receive initial equity in the new company. The company would be well positioned with validated intellectual property, a predetermined market niche, and the companies will have identified the potential management team that has the market expertise and proven track record to maximize returns. Forentis Fund would be the first investor in the company after the seed round. We would provide the capital needed to bring the company to either IPO or acquisition status. Use of capital would include further validation, beginning the FDA process when needed, and recruitment of the management team.

6 The NEWCO Strategy Forentis will work with the founders to determine the best course of action. In most cases we will file an S-1 application to the SEC to start the process for an Initial Public Offering. This process provides the opportunity to establish all required audit and due diligence documentation that will be required whether the company proceeds with the IPO or becomes an acquisition target. We anticipate that regardless of ultimate liquidity event, the process will take less than one year for each NEWCO. At the liquidity event, Forentis expects to realize a significant profit on invested capital. The Fund will then announce a distribution to all Limited Partners. This strategy provides our LPs with multiple paths to liquidity while enjoying the continual value creation within the target portfolio companies.

7 Why a Fund? As a special purpose venture fund, our team will be exclusively focused on our portfolio companies development and the formation and development of the NEWCOs that spin out of these companies. As a fund, our investors will have equity participation in all of the companies. An important aspect of a fund is that all cash flows are carefully documented and tracked. This provides a level of transparency that exceeds that of a traditional holding company model. Annual audits are performed by an independent third party. Another important aspect of the fund is that our LPs see their investment on each company returned in full before the fund managers participate in any profits. This ensures that our investors interests come first.

8 A Proven Structure Special Purpose Fund Investor Interests Come FIRST Transparency of Cash Flows Clear Path to Multiple Liquidity Events

9 What this means for you You own pro-rata equity in every company You are first investor in each spin-off Accelerated returns from spin-off liquidity events Long term capital gains from primary companies This is about more than getting a great investment return it s about leaving a legacy.

10 Contact Jay Goth Managing Director