Renaissance BioScience — RNAi technology from bioengineered yeast

Private: Renaissance BioScience (RENABIOTICKER)

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Research: Healthcare

Renaissance BioScience — RNAi technology from bioengineered yeast

Renaissance BioScience is a private bioengineering company developing proprietary yeast strains for use in the food and beverage, healthcare and agriculture industries. It has been successful in commercially licensing its ‘Generation 1’ technology, which comprises yeast strains for use in the food and beverage industry. The primary focus has now shifted to the development of its ‘Generation 2’ technology – yeast strains capable of producing and delivering RNAi – and aims to address challenges in the agriculture and biopharmaceutical industries. Early results indicate that its RNAi solutions could be low-cost, efficacious and non-toxic. As the company is a private entity, we have limited visibility on its financials. However, in November 2021, it successfully closed the balance of its US$5m convertible debenture, proceeds from which have been allocated to advance its RNAi platform.

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Healthcare

Renaissance BioScience

RNAi technology from bioengineered yeast

Life sciences

Private company - QuickView

21 January 2022

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Business description

Renaissance BioScience was founded in 2013, based in Vancouver, Canada, and is a private bioengineering company. It develops proprietary, genetically engineered yeast strains that produce RNAi. It has commercially licensed its product to the food and beverage industry, and plans to launch products in the healthcare, chemicals and agriculture industries.

Bull

Highly specific molecules with low toxicity.

Growing global biopesticide market (currently valued at US$4.3bn).

Accessible infrastructure and low cost of production.

Bear

Competition exists in the RNAi market.

RNAi programmes are at an early stage of development.

No current partnerships in the healthcare or agriculture industries

Analysts

Dr Elliott Lumb

+44 (0)20 3077 5700

Dr Sean Conroy

+44 (0)20 3077 5700

Renaissance BioScience is a private bioengineering company developing proprietary yeast strains for use in the food and beverage, healthcare and agriculture industries. It has been successful in commercially licensing its ‘Generation 1’ technology, which comprises yeast strains for use in the food and beverage industry. The primary focus has now shifted to the development of its ‘Generation 2’ technology – yeast strains capable of producing and delivering RNAi – and aims to address challenges in the agriculture and biopharmaceutical industries. Early results indicate that its RNAi solutions could be low-cost, efficacious and non-toxic. As the company is a private entity, we have limited visibility on its financials. However, in November 2021, it successfully closed the balance of its US$5m convertible debenture, proceeds from which have been allocated to advance its RNAi platform.

A new generation for new applications

Renaissance’s Generation 1 yeast strains were designed to reduce the unpleasant odour from hydrogen sulphide in wine and lower carcinogenic acrylamide in baked foods. The strains have been patented and commercially licensed to global industry leaders such as Kerry and Lallemand, from which it receives sales royalties. Its Generation 2 yeast strains are being engineered to produce and deliver RNAi molecules, with the initial focus on their use as a biopesticide for crop protection. With an overarching goal of reducing the use of chemical pesticides in agriculture, biopesticides are a growing market currently estimated to be worth US$4.3bn. Renaissance believes its RNAi platform could provide an eco-friendly and low-cost solution, and is exploring the potential of its RNAi platform for aquaculture, animal and human health.

RNAi-based technology in brief

Messenger RNA (mRNA) is used to encode and instruct cells to build proteins that drive cellular function. RNA interference (RNAi) molecules are designed to target specific mRNA molecules, reducing protein production and cell function. RNAi can act as a biopesticide by specifically targeting an essential gene required for life in a target pest, resulting in its death. It can also be used broadly in healthcare, for example by reducing the production of proteins required for virus replication, or by reducing inflammation related to human disease.

Yeast that produces and delivers RNAi

Renaissance’s proprietary yeast strains are modified to produce specific RNAi molecules and deliver the RNAi to the target cells. The advantage of this approach addresses the common limitations of scaling RNAi production. By using a yeast-based approach there is access to commonly used, large-scale infrastructure which, with a low cost of raw materials, results in a reduction in the cost of production compared to chemical RNAi synthesis. As a delivery method, inactivated yeast offers advantages such as long shelf life, and can withstand high temperatures, high pressures and harsh conditions.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

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NSW 2000, Australia

General disclaimer and copyright

This report has been prepared and issued by Edison. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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