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PURE Bioscience, Inc. DELIVERING SUPERIOR FOOD SAFETY SOLUTIONS Corporate Presentation December, 2016 1 (OTCQB: PURE)

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Page 1: PURE Bioscience, Inc

PURE Bioscience, Inc.

DELIVERING SUPERIORFOOD SAFETY SOLUTIONS

Corporate PresentationDecember, 2016

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(OTCQB: PURE)

Page 2: PURE Bioscience, Inc

Forward-Looking StatementsAny statements contained in this presentation that do not describe historical facts may constituteforward-looking statements as that term is defined in the Private Securities Litigation Reform Act of1995. Forward-looking statements inherently involve risks and uncertainties that could cause ouractual results to differ materially from the forward-looking statements. Factors that could cause orcontribute to such differences include, but are not limited to, the Company’s failure to implement orotherwise achieve the benefits of its proposed business initiatives and plans; acceptance of theCompany's current and future products and services in the marketplace, including the scope andtiming of the market acceptance of the Company’s PURE Control® and PURE ® Hard Surface andthe Company’s ability to convert successful evaluations into customer orders and customerscontinuing to place product orders as expected and to expand their use of the Company’s products;the ability of the Company to develop effective new products and receive required regulatoryapprovals for such products, including the required data and regulatory approvals required to use itsSDC-based technology as a direct food contact processing aid in Raw Meat Processing and toexpand its use in OLR poultry processing; competitive factors; dependence upon third-partyvendors, including to manufacture its products; and other risks detailed in the Company's periodicreport filings with the Securities and Exchange Commission (the SEC), including its Form 10-K forthe fiscal year ended July 31, 2016 and its Form 10-Q for the fiscal first quarter ended October 31,2016. You should not place undue reliance on these forward-looking statements, which speak onlyas of the date of this presentation. By making these forward-looking statements, the Companyundertakes no obligation to update these statements for revisions or changes after the date of thispresentation.

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Page 3: PURE Bioscience, Inc

Problem: Foodborne Illness Outbreaks on the Rise

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28 Years for Salmonella: Peanut Exec. Gets Groundbreaking Sentence

28 Years for Salmonella: Peanut Exec. Gets Groundbreaking Sentence

Listeria Prompts Recall of 42                                       Brands of Frozen Fruits & Veggies

Listeria Prompts Recall of 42                                       Brands of Frozen Fruits & Veggies

Foster Farms Salmonella Outbreak Expands

Chipotle Sales Plunge as Troubled Chain Gets Federal Subpoena

Dole Withdraws Packaged Salads After Listeria Outbreak Spreads to Six States, Killing 1 Person

DOJ Investigating Blue Bell Creameries Response to Listeria Contamination

DOJ Investigating Blue Bell Creameries Response to Listeria Contamination

Nestlé Recalls Drumsticks for Possible Listeria Contamination

Page 4: PURE Bioscience, Inc

Food Safety Modernization Act• Preventive controls implementation• Increased verification/validation

USDA Salmonella Action Plan • Today +25% of raw poultry sold to consumers is contaminated

with Salmonella• New ‘maximum acceptable’ standard reduced to 15%• USDA est. 63% of plants are presently out of compliance

Dept. of Justice and FDA• Recently increased efforts to conduct criminal investigations in

foodborne illness outbreaks

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Additional Market DriversIncreasing Regulatory Requirements

Page 5: PURE Bioscience, Inc

SDC: Revolutionizing Food SafetyTwo SDC Products in the Market Eliminate E. coli, Salmonella, Listeria, Campylobacter and Norovirus

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Superior, broad spectrum, non-toxic antimicrobial disinfectant and processing aids based on patented SDC (silver dihydrogen citrate)

• EPA registered for disinfecting surfaces that come in contact with food. First new EPA registration in 30 years.

• Testing: +90% improvement in pathogen reduction on surfaces vs. incumbent products

• FDA & USDA approved for direct food contact- Fresh Produce

Processing- Raw Poultry Processing

• Testing validates dramatic reductions in most persistent pathogens vs. the competition

• Food processing, and foodservice

• Rising concerns- Illness outbreaks - Product recalls - Brand protection

• SDC mitigates bacterial resistance

Solutions ForGrowing Needs

Page 6: PURE Bioscience, Inc

SDC Disruptive Technology• Commercializing superior non-toxic food safety solutions to the food industry

Multiple Large Markets • PURE Control: Revenue target +10% of +$1 billion US market. Margins low 50%• PURE Hard Surface: Revenue target +10% of +$1.5 billion US market. Margins high 40%

Customers With Unmet Needs• PURE Control: Food Processors/Manufacturers• PURE Hard Surface: Food Processors/Manufacturers, Restaurant Chains

Competitive Barriers• 12 US Patents (extending to 2030)• Unique EPA Registration and FDA & USDA Approvals

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Investment Opportunity

Page 7: PURE Bioscience, Inc

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$2.5 Billion Total Addressable US Market Opportunity

$1.0 billion: Direct Food Contact processing aids used in Produce, Poultry, Meat Processing

$1.5-$2.0 billon: Surface disinfectants, cleaners used in restaurants (560,000 stores) and food manufacturers/processors (116,000 facilities)

+10% Market Share = +$250 Million US Revenue Target Driven by launch of PURE

Control and accelerating sales of PURE Hard Surface as the most effective, unique, and non-toxic technology for enhanced food safety

Strategic Objective

Page 8: PURE Bioscience, Inc

Experienced Leadership Team

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Dave Pfanzelter, Chairman• Former Senior VP, Kellogg Company; President, Kellogg’s Specialty Channels & President, Kellogg 

Canada• Director SUBWAY® Restaurants, Director Wrigley advisory board

Hank Lambert, President and CEO• 35+ years food industry/consumer products/food safety experience as executive driving 

revenues/earnings with Heublein, RJ Reynolds, Nabisco, Pinnacle Foods, Underwriters Laboratories

Mark Elliott, VP Finance• 10+ years of financial accounting and management leadership as Controller for PURE

Cliff Wechsler, EVP Sales • 30+ years sales leadership in foodservice at Kraft Foods

Tom Myers, EVP Technical Services• 40+ years marketing and R&D leadership in food science and processing industries

Page 9: PURE Bioscience, Inc

Board of Directors

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Dave Pfanzelter, ChairmanHank Lambert, President and CEODavid Theno, Jr. Ph.D., Strategic Food Safety Advisor

• CEO, Gray Dog Partners, Inc., consulting firm specializing in food safety, manufacturing, restaurant operations, supply chain management, strategic planning and facility design. Member of Chipotle Mexican Grill Food Safety Advisory Council. Former VP, Food Safety for Jack in the Box

Bill Otis• Executive Vice President ‐ Operations Packaged Meats Division, Smithfield Foods, Inc.

Gary Cohee• President and CEO, PMB Securities Corp.

Tom Lee, CPA• Chairman and CEO of Swabplus, Inc. 

Scientific Advisory BoardJames L. Marsden, Ph.D. – Chairman, PURE Scientific Advisory Board

• Executive Director of Food Safety at Chipotle Mexican Grill• Emeritus Distinguished Professor of Food Safety and Security, Kansas State University

Page 10: PURE Bioscience, Inc

PURE Control Commercialization Applied Directly Onto Fresh Produce and Raw Poultry During Reprocessing; a Leading-Edge, Non-Toxic Food Safety Solution with Superior Efficacy and Safety

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• Push – direct sales to processors, retailers, distributors• Pull – retailers and restaurant chains specify product

to their produce and poultry suppliers

Push / PullMarketing

• Already using PURE Hard Surface for environmental plant & equipment sanitation

• Industry leaders• With known pathogen issues

TargetingProcessors

• Capture significant market share – at least $65 million (+10%) of combined US produce (+$300m) & poultry (+$350m) processing aids market

Target

Page 11: PURE Bioscience, Inc

Direct Food Contact - Produce

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Sales est. +$1 million year/processing plant

Est. 1st order with completion of online testing/optimization in 2-3 months:• A leading Produce Processor (that uses PURE Hard Surface) is

completing validation and optimization testing in its pilot plant -• It recently moved use of PURE Control into a production plant for

validation use as a new processing step for added protection

Initial Target Customers of PURE Control for Produce Processing Include: • Taylor Farms• Ready Pac Foods, Inc.• Simplot Food Group• Dole Food Co., Inc.

• Reser’s Fine Foods• Fresh Express• Del Monte• Sysco

Page 12: PURE Bioscience, Inc

Produce – Dramatic Pathogen ReductionsProduce Processors Seek a 1 Log (10x) Pathogen Reduction; Celery Test Achieved +3.5 Log (+1000x) Pathogen Reduction

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Page 13: PURE Bioscience, Inc

Poultry Processing Aids: +$350 million annual US market. Top six processors control nearly 50% of the poultry market.

Initial target customers for Poultry Processing include:

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Direct Food Contact – Poultry USDA Approved for Pre-OLR and Post-Chill ApplicationsUSDA Approval for OLR Pending Plant Trials (est. calendar Q2 ’17)

• Tyson Foods• Pilgrim’s Pride• Perdue Farms• Foster Farms

• Wayne Farms • Koch Foods• Amick Farms

Page 14: PURE Bioscience, Inc

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Poultry – Dramatic Salmonella Reductions

Page 15: PURE Bioscience, Inc

The PURE Control Advantage –Produce and Poultry Processing

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• Poultry: Potential to reduce Salmonella to below detection levels

• Produce: 100-fold pathogen reduction over current practices (E.coli, Salmonella, Listeria)

• Poultry: Neutral to positive impact on yield

• No organoleptic issues

Superior Performance

• Easier to handle & dilute

• Non-corrosive to processing equipment

• Lowest toxicity – does not create noxious fumes

• User & environment friendly

• Mitigates bacterial resistance

Superior Product

SuperiorBrand Protection

• For processors, retailers, restaurant chains

• Risk management

• Mitigating scrutiny, liability and financial penalties

Page 16: PURE Bioscience, Inc

2017 Commercialization – Meats Testing Ongoing by PURE of SDC as an Intervention for Salmonella and E. coli in the Processing of Beef & Pork (+$400M US Market)

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• Pending successful test results, PURE estimates it will file for FDA approval for Meats Processing in calendar ’17

• After the FDA’s mandatory 120-day review period and receipt of that approval PURE will file for USDA approval

• The Company would then expect to begin commercialization for US Meats Processing late in calendar ’17

Page 17: PURE Bioscience, Inc

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PURE Hard Surface – Restaurant ChainsApplied to Surfaces Which Come in Contact With Food; Replaces Less Effective and Toxic Legacy Products; Uniquely Effective for Norovirus Elimination/Prevention

* SUBWAY® is a registered trademark of Doctor's Associates Inc.

• Recently adopted by Chipotle Mexican Grill in all 2,200 store locations nationwide

• Used both in the front & back of the restaurant as part of new ‘Enhanced Restaurant Food Safety Procedures’

…in use at NationalRestaurant Chains

• Adopted by SUBWAY®

Restaurants* in +7,000 franchised stores

• A second national QSR

• 3 casual dining chains

• 4 additional chains evaluating

Page 18: PURE Bioscience, Inc

PURE Hard Surface -Processors / ManufacturersApplied to Plant and Equipment Surfaces; Environmental Misting -Replaces Less Effective, Toxic Legacy Products

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• +40 national food processors/ manufacturers

• Superior Listeriaeradication

Growing Adoption

• +50 nationalcompanies

• $25-$40 million revenue potential

Sales Pipeline

• Bakeries• Ready To Eat

Foods• Pet Foods• Tortillas• Cheese & Dairy• Meats, Poultry,

& Produce

Customers

Page 19: PURE Bioscience, Inc

Licensing Platform TechnologyContinue to Out-License to Partners in Non-Food Markets

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Brenntag

Institutional janitorial

sanitation medical facilities

cruise lines

Disinfection of dental rinse

water for patients

Personal care products

outside of the United States

Current non-exclusive licensees include:

Page 20: PURE Bioscience, Inc

Adequate working capital to: Accelerate commercialization of SDC as a food safety solution Support operations through calendar Q4 ’17

Common stock (as of 10/31/16 )

62.2 Million Primary 74.2 Million Fully Diluted

No long-term debt No preferred stock

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Fiscal Quarter Ended Oct. 31, 2016

Net Product Sales* $ 531,000

Net Loss Per Share $ (0.03)

Cash $ 4,064,000

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Financial Overview (FYE July 31)

*Current annualized revenue run rate = +$2M

Page 21: PURE Bioscience, Inc

PURE Control • Fresh Produce Processing – product launch; market penetration• Raw Poultry Processing – product launch for pre‐OLR and post chill uses;             

est. calendar  Q2 ’17 receipt of additional USDA approval for OLR; begin market penetration 

• Raw Beef and Pork Processing – continue testing to file for regulatory approvals from FDA and USDA late in 2017

PURE Hard Surface • Continue building commercial traction• Supply 3 new national restaurant chains, and double                                         

existing # of national food manufacturers / processors to 80   

Continued Licensing• PURE products distribution, and • SDC technology for non‐food applications

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Milestones for Success (Calendar 2017)

Page 22: PURE Bioscience, Inc

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Revolutionizing Food Safety With SDC

One of the Most Powerful Antimicrobials

in the Industry

Investor ContactTerri MacInnis, VP of IR, Bibicoff + MacInnis, Inc.(818) 379-8500 [email protected]

PURE Bioscience, Inc.Hank Lambert, CEO1725 Gillespie Way, El Cajon, CA 92020(619) 596-8600 x 103 www.purebio.com