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The Future of Radiotherapy is MR Guided TM

Aurora-RTTM Linac-MR

Magnettc Oncology Solutions

June 27, 2017

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Problem in Radiotherapy (RT)

Radiation kills both cancerous & healthy cells

Poor visual guidance during treatment

Patient planned days prior to treatment

Tumours move during treatment

Treating with margin of error damages healthy tissue

Sub-optimal RT doses to limit side-effects are given to tumour requiring

many extra RT treatments

Decreases chance of cure

Increases chance of harm

margin of error

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The Solution – Image WHILE Treating Tumours are BEST seen with MRI

Combine an MRI and a radiation treatment unit (“Linac”) to

concurrently image and treat

• locate and continuously monitor tumour

• confine dose to tumour only

Considered to be impossible due to machine interferences

We were the first to do it (2008 and 2014):

2 “Linac-MR” prototypes at Cross Cancer Institute (CCI) & University of

Alberta (U of A).

Significantly improves the chance of cure

minimizes side effects

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Example 1: Problem in targeting - Prostate -- Cannot clearly see what to treat --

Our 0.5 T MR: - Real-time: Before, During & After Tx

kV Cone Beam CT: - Only Before & After Tx

Current imaging MRI from Aurora-RT prototype

Requires 40 treatment visits Estimate 1 to 5 treatment visits

Tumour

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Example 2 : Problem with tissue movement - Cervix -- Organs can move during treatment (eg., body processes, breathing)

Outline drawn around organ

Currently Treat the Outline

In minutes organ moves significantly

NEEDS IMAGING DURING TREATMENT

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Current Magnettc Team Gino Fallone, CEO, CSO & Co-Founder

Academic & clinical director of the Medical Physics Department at CCI and U of A. Leader of Linac-MR program since 2002. Co-inventor of the Aurora-RT, international leader in medical physics innovation.

Brad Murray, President, COO & Co-Founder

Engineering & Medical Physics degrees with twenty five years of clinical radiation therapy and medical physics experience. Previous start-up experience. Co-inventor of the Aurora-RT.

Jason Ding, Executive Advisor – Finance

Life science technology start-up executive with licensing and financing expertise. Experience with multiple start-ups. Previously VP & Director with Deloitte Corporate Finance. CPA, CA and CBV.

Thomas Rhea, Executive Advisor – Business Development

40 years in radiotherapy equipment sales, including Varian for North America, and start-up experience.

Kerry Toll, Executive Advisor – Corporate Affairs

Experienced health planner and senior healthcare administrator with speciality in cancer services.

Regulatory: Bob Morton

Legal Counsel: Sustrik Law

Accounting & Tax: Cameron & Hankinson PC

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Full Body Prototype (2014)

The team with commercial prototype

About 50 peer-reviewed

scientific articles.

10 patent families- over 20

issued and others pending.

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The “Aurora-RT”

commercial version

In construction at the Cross Cancer Institute

– first patient to be treated in 2018

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Size of the business opportunity

Significant markets worldwide

1 in 3 people will develop cancer

50% of them treated with linac

Growing at ~5% per year; now >11,000 clinical linacs

Replacement Market ~10-12 years at replacement cost

of USD $3-6M/linac equals >$4 B per year

Magnettcforecast

revenues of $103 M USD in 2021

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Business CASE for more precise RT

Decreased # of treatment sessions (visits)

Eg. Prostate (35 to 5 sessions),>$14k USD /patient

• direct savings $250 M USD /year

• direct savings in time savings from work, transportation (Hodges et al, J Oncol Practice, 2014)

In ADDITION:

• Reduction (eg., 1/7) in number of linacs required

Fewer side effects with more precise RT

Eg. Gynecologic cancer

• Significant cost savings (Chen et al, Gyne Oncol, 136, 2015)

Aurora-RT provides much more precise RT

with further costs savings

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Competition

RefleXion

PET-Linac ViewRay MRIdian

MR-Linac

Elekta Unity

MR-Linac

Our advantages

ACCURACY - Optimized Magnetic Field strength & orientation

ACCURACY - Effectively treat peripheral tumours (e.g. breast)

ACCURACY - No radioactive sources used

COST/SAFETY - No cryogen/liquid-helium required

COST/EFFICIENCY - Ease of installation and maintenance

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Business Model

Revenue Sources: • Aurora-RTTM sales

o Distribution with partners

o Software upgrades

• Service & maintenance contracts

• Consulting / training contracts

• Licensing for other technology products (e.g. proton therapy)

• R&D on new products using licensed intellectual property

On-Site Assembly minimizes manufacturing facility requirements

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Milestones

Recently completed

Over $30 M non-dilutive grants world’s first proof of concept (2 working prototypes)

commercial version in progress

Exclusive license agreement negotiated 2016

Quotations prepared for several hospitals at their requests

In Q3 2017

Supplier agreements: already well advanced negotiations

Regulatory submissions: US FDA (510K – uses predicate devices),

complete ISO13485 Certification for Canada & EU

In 2017/18

Regulatory clearance: US FDA 510K, Health Canada & CE Mark

Product launch & first sale

Clinical studies: Cross Cancer Institute

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Financial Projections

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Financing needs

Current Needs & Requests

Develop corporate space, add

linac vault, Aurora-RTTM

Staffing, Sales, other SG&A

Product Development &

Regulatory

Installation & Maintenance

Working Capital

IP portfolio

$6.5M

$10.1M

$0.4M

$4.9M

$6.5M

$3.6M

$32M required to reach self-sustainability / break even

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Financing needs

Current Needs & Requests

Build-out of commercial space,

linac vault, Aurora-RTTM

Staffing, Sales, other SG&A

IP portfolio

Product Development &

Regulatory

Installation & Maintenance

Working Capital

$6.5M

$10.3M

$0.2M

$4.9M

$6.5M

$3.6M

$32M required to reach self-sustainability / break even

Seeking $12.0M in our financing round

Recruit dedicated key leadership staff

Complete Aurora-RT commercial version

Secure regulatory clearance in 2017/18

First commercial sale in 2018

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Highlights

Breakthrough Radiation Therapy Treatment Device

Hybrid Linac combined with MR imaging

Leading management team

Technology design extensively de-risked

proof-of-principle 2008

full human scale working prototype 2014

~$30M of non-dilutive research grants

Unique design superior to the competition

Raising first round of $12M USD investment