Cibus (CBUS) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Industry leadership and regulatory landscape

• Gene editing in agriculture enables precise, non-GMO trait development, making crops easier to farm and more efficient.

• Regulatory frameworks in the U.S., Europe, and Canada now treat gene-edited crops as conventional breeding, with harmonization across at least 18 countries in the last two years.

• European Parliament has passed supportive legislation, expected to be fully enacted by early next year, with only minor political delays remaining.

• Environmental groups support gene editing for its potential to reduce chemical use in farming.

• Approval processes for gene-edited crops are less complex than for traditional GMOs or pharmaceuticals, focusing on field trials and varietal registration.

Technology and product development

• The Trait Machine process allows for highly accurate, rapid genome edits, with conversion rates up to 50% in some cases.

• Stacked gene-edited traits, such as HT1 and HT3 for herbicide tolerance, have shown strong field trial results, enabling season-long weed control and reduced chemical use.

• First U.K. field trials for pod shatter reduction in winter oilseed rape are underway, with results expected in Q3.

• Specialty ingredients and bio-fragrances are in development, with initial fragrance shipments expected this year and sustainable ingredients following soybean platform completion.

• Acquisition of Calyxt provided key patents, advanced growth chambers, and expanded R&D capacity.

Commercialization and financial outlook

• Royalty-based business model targets 80%-90% margins once plant royalties begin, expected between 2026 and 2027.

• Current cash burn is $5 million per month, projected to decrease with operational consolidation next year.

• Seed companies are primary customers, ready to rapidly scale inventory once traits are delivered, with full market saturation expected within 3-5 years of launch.

• Focus on traits with broad industry demand to ensure rapid adoption and competitive advantage.

• Long-term opportunities include allergy-free peanuts and gluten-free wheat, with potential for billions in royalties as applications expand.