Transcript Company Presentation

Company Presentation
1st Quarter 2011
Safe Harbor Statement
Matters discussed in this presentation contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. When used in
this press release, the words "anticipate," "believe," "estimate," "may," "intend,"
"expect" and similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking statements contained
herein, and while expected, there is no guarantee that we will attain the
aforementioned anticipated developmental milestones. These forward-looking
statements are based largely on the expectations of the Company and are
subject to a number of risks and uncertainties. These include, but are not limited
to, risks and uncertainties associated with: the impact of economic, competitive
and other factors affecting the Company and its operations, markets, product, and
distributor performance, the impact on the national and local economies resulting
from terrorist actions, and U.S. actions subsequently; and other factors detailed in
reports filed by the Company.
© 2011 OriginOil, Inc.
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Executive Summary
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Founded in June 2007, OriginOil is an emerging green technology company, dedicated to developing
the world’s dominant technological platform for algae oil production.
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Positioned to become “the Intel of algae oil,” OriginOil has differentiated itself from its competitors by
focusing on building the breakthrough technology behind algae oil production, rather than producing
algae oil itself .
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Notable accomplishments and advantages include:
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Differentiated business model.
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Extensive patent portfolio, continuous innovation.
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Multi-billion dollar long-term market opportunity.
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Strong “initial markets” and short-term revenue applications.
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Developing a globally integrated network of commercial partners.
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Flagship research partnership with U.S. Department of Energy.
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Emerging commercial partnerships with showcase partners.
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Most efficient extraction technology in the algae oil industry.
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First mobile demonstration system launched to drive sales.
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First customer booked in a fast-expanding strategic segment.
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First revenue announced with follow-on announcements scheduled.
After more than three years of technological breakthrough, OriginOil has achieved
commercialization and is well ahead of its strategic plan.
© 2011 OriginOil, Inc.
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Company Overview
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Name: OriginOil, Inc.
CEO: Riggs Eckelberry
Incorporated: June 2007
Effective as Public Company: April 2008
Headquarters: Los Angeles, CA
Employees: 10
Ticker: OOIL (OTCBB)
Share Price: $0.19
52 wk High/Low: $0.35/$0.11
Average Daily Volume: 534,717 (3 month)*
Market Cap: $34.28MM*
Shares Outstanding: 184.61MM**
Public Float: 62MM***
Principal Ownership: Riggs Eckelberry
(21.7%), Nicholas Eckelberry (8.12%)
Yahoo Finance 21 January 2011
OriginOil 31 Dec 2010
DTC Report 21January 2011
© 2011 OriginOil, Inc.
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Cleantech: A Multi-Trillion Dollar Market
Venture funding for clean technologies has exploded since 2003. By far
the fastest growing category of VC investment, cleantech surpassed
biotech as the largest recipient of VC money in 2009.
Source: Cleantech Group
© 2011 OriginOil, Inc.
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The Advanced Biofuels Mandate
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Algae, the primary advanced biofuel, will benefit from US mandated standards
o Ethanol fully replaced by 2022
o Fastest growth among all biofuels
Source: http://www.epa.gov/oms/renewablefuels/420f09023.htm
© 2011 OriginOil, Inc.
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Algal Biofuels: An Engine of Growth
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The world biofuels market is expected to grow at a CAGR of 12%+ until 2017
$105.4 billion in forecasted annual revenue by 2018
Commercial Timeline of Algal Biofuels
8 billion
gallons/yr
6 Billion
Gallons
1 Billion
Gallons
1 billion
gallons/yr
100
Million
Gallons
100 million
gallons/yr
50 million
gallons/yr
10 Million
Gallons
10 million
gallons/yr
1 million
gallons/yr
100,000
gallons/yr
1 Million
Gallons
100,000
Gallons
2010
2011
2012
2013
2018
2025
Sources: Algae 2020, Emerging Markets Online Consulting Services, Biofuel Digest
© 2011 OriginOil, Inc.
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Algal Biofuels: Market Snapshot
Despite an economic downturn, environmental concerns and volatile crude
oil prices continue to drive the algae biofuels industry:
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Algae market growth 550% between 2005 and 2007, forecast to reach $1.6B by 2015.
Emerging production technologies to make up one-third of the market by 2015, obsoleting
current technologies.
This market trend strongly favors
breakthrough technology providers
such as OriginOil.
Source: Algae Biofuels Production Technologies Worldwide Market Research Report
© 2011 OriginOil, Inc.
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Algae To Dominate Renewable Chemicals
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90% of crude oil goes into fuel, but 40% of the profits come from petrochemicals.
Renewable chemicals market is poised to become a viable alternative to
petrochemicals.
Algae is the only renewable feedstock which can scale realistically to compete with
petroleum.
Renewable chemicals market:
US$56.9 billion in sales by 2015.
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Elevance (Cargill spinoff) grossing
$10MM today, forecasts $1 billion in
2016.
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Elevance has indicated to OriginOil
its priority focus on algae.
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Fast-growing renewable chemicals
company Cereplast (CERP) has
announced a changeover to algae.
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Sources: GIA Global Strategic Business Report: Renewable Chemicals, Plastics News, Energy & Environmental Systems Institute
© 2011 OriginOil, Inc.
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The New “Oil Rush”
Virtually every major oil company has an algae investment:
— Synthetic Genomics
— Solazyme
— Cellana
— Martek
— Solix
© 2011 OriginOil, Inc.
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Chemicals and Consumer Products
Chemical and Consumer Products Companies are following suit:
— Algenol
— Solazyme
— Solix
“London-based Unilever, which relies on palm oil to make Dove soap, Vaseline lotion and Magnum
ice cream…has made a multimillion-dollar investment in Solazyme Inc., a South San Francisco,
Calif., company that harvests algal oil, a liquid that can replace palm oil in foods, soaps and lotions
and serve as biodiesel fuel to power airplanes.”
– Wall Street Journal
© 2011 OriginOil, Inc.
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Three Generations of Biofuels
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First Generation – Billions of dollars invested in corn,
vegetable oils, sugar cane. Caused major food supply
dislocations in 2008.
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Second Generation – Billions more still being invested in
non-food land crops such as grasses, forestry, jatropha.
Food chain dislocation avoided, but major issues of land
and water use remain.
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Third Generation – Advanced Biofuels.
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Requirements:
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Not a food crop
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Needs minimal land
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Uses waste, brackish, or salt water
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Purifies water (nitrates, drugs, salts)
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Minimal evaporation
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Substantial rates of CO2 absorption
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Large-scale Oxygen generation
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Rapid harvests, permitting industrial scale
production
----Algae is the Third Generation feedstock .
© 2011 OriginOil, Inc.
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Algae Solves Resource Challenges
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Fossil Fuel Displacement
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Reduces Emissions and CO2
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Reduction of many pollutants.
“Net zero” carbon footprint.
Total sequestration for maximum carbon removal.
Sustainable Generation
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Biofuels from algae can replace petroleum directly.
Every ton of algal biofuels used displaces one ton of petroleum.
Use of croplands avoided completely.
Fresh water unnecessary (waste water preferred).
Use of fresh water reduced or eliminated altogether.
Industry Synergies
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Industry partnerships for onsite fuels and CO2 absorption
Algae’s compact footprint enables production even in industrial zones.
© 2011 OriginOil, Inc.
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Versatile Resource, Versatile Revenue
Multiple Fuels
Multiple Applications
Multiple Revenue
Streams
© 2011 OriginOil, Inc.
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The Challenge
The industry’s foremost technology challenge is getting the oil out of the water.
A technological approach is needed
Source: Biofuels Digest, 18 January 2011: Lotta Watta: algal innovators pioneering new extraction techniques
© 2011 OriginOil, Inc.
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The Solution
OriginOil has the key technology for oil extraction from algae:
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In one step, Quantum Fracturing™ combines with electromagnetism and pH modification to break
down cell walls.
Algae oil rises to the top for skimming and refining, while the remaining biomass settles to the bottom
for further processing as fuel and other valuable products.
© 2011 OriginOil, Inc.
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OriginOil’s Midstream Activities
© 2011 OriginOil, Inc.
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The OriginOil IP Portfolio
#10 – Hydrogen Harvester™ (2010): Photosynthetic technology platform that yields energy in the form of oil, biomass,
and hydrogen. Uses little or no external energy inputs, requires no sulfur deprivation or other “stressing” of the algae, and
no genetic modification.
#9 – MultiReactor™ (2010): Direct-solar growth design that uses growth layers to harness the sun’s energy more
effectively than existing pond systems, while greatly reducing the real estate required.
#8 – Attached Growth System (2009): A breakthrough surface-mounted algae growth system that achieves more
efficient light delivery, scalable growth, and higher throughput. Optimal for initial rollout in wastewater treatment plants.
#7 – Live Extraction™ (2009): Achieves continuous production of algae oil without destroying the algae cell; does not
employ expensive consumables and is not limited to oil-bearing algae strains.
#6 – Dynamic Control System (2009): A bio-feedback process that improves energy efficiency and growth rates by
ensuring the right types and amounts of light are used at all times as the algae grows to maturity.
#5 – Single-Step Extraction™(2009): A revolutionary simplification of the algae harvesting process; combines Quantum
Fracturing™ with electromagnetics and pH modification to bring about oil extraction, and self-separation of oil, water and
biomass.
#4 – Optimizing Photosynthesis in a PhotoBioReactor (2009): Additional improvements in photosynthesis using
artificial lighting.
#3 – Modular and Scalable Growth System (2008): Horizontal and vertical “stacking” of many Helix BioReactors into an
integrated network of fully automated, portable, and remotely monitored growth units.
#2 – Helix BioReactor™ (2008): Enables multiple vertical growth planes by optimizing delivery of light.
#1 – Quantum Fracturing™ (2007): Achieves total and instantaneous distribution of CO2 and nutrients in the algae
culture with minimal disruption.
Note: All patents are currently pending and under the interim protection of the U.S. Patent and Trademark Office (USPTO)
© 2011 OriginOil, Inc.
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More Similar To
Than To
Like the giants of crude oil, the first-wave of algae oil companies have invested hundreds of
millions of dollars in infrastructural build-out, vertical production, and head-to-head
competition.
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OriginOil, on the other hand, is a pure technology company – competing with few while
looking to partner with many.
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OriginOil’s mission is to design and continually adapt the world’s dominant technological
platform for algae extraction.
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OriginOil will commercialize its technology through a combination of:
 Today: Strategic partners who will help prove and scale the technology.
 Tomorrow, OEMs and licensees who will give the technology global distribution.
The OEM category encompasses manufacturers, distributors, engineering service firms,
system integrators as well as specialty operators in high-value markets such as
nutritionals and beauty products.
Certain OEMs will be selected as manufacturers of OriginOil’s proprietary hardware.
© 2011 OriginOil, Inc.
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More Similar To
Than To
OriginOil’s blend of Strategic Partnerships and OEM/Licensing offers a host of potential
advantages, including:
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Limited Capital Requirements
Clean balance sheet and minimal leverage requirements
No capital cost for manufacturing, no time wasted on building distribution
Collaborate with major players instead of competing with them
Diversified revenue streams (large customer sales now, blending into licensing annuities)
© 2011 OriginOil, Inc.
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Company Developments
January 25, 2011 – OriginOil Lands First Order for Industrial Scale Algae Oil Extraction System
Owner of three ‘CO2 to energy’ projects will pilot extraction unit at large coal-fired power plant
January 20, 2011 – OriginOil to Embed Its Technology into Industrial Algae Systems
Long-term goals will be in licensing while strategic partners help prove and scale technology
January 11, 2011 – OriginOil to focus on Its Industry Leading Algae Extraction Technology
New single focus on extracting oil from algae strategically positions the company to provide the critical connection between algae
growers and refiners
January 5, 2010 – National Algae Association Names Riggs Eckelberry to Advisory Board
OriginOil CEO to join top professionals who will help scale up and develop the algae industry
December 8, 2010 – OriginOil Announces Successful First Phase of Commercial Pilot Program
Pilot Partner MBD Energy praises OriginOil Team on expertise and system operation
November 8, 2010 – OriginOil Achieves Hydrogen Production Comparable to Photovoltaics
Research breakthrough points to a highly scalable and renewable source of hydrogen
October 6, 2010 – OriginOil Enters Strategic Partnership with Major Bio-Capture Player
Master agreement covers product deliveries, joint development, technology protection and exclusivities
September 2, 2010 – OriginOil Delivers Second Product To Strategic Customer
Shipment of Single-Step Extraction System to MBD Energy Triggers Second Payment Series
“OriginOil’s algae
harvesting equipment
performed extremely well
during preconstruction
tests at MBD’s R&D
facility at James Cook
University,”
Andrew Lawson,
Managing Director of
MBD Energy, Ltd.
July 27, 2010 – OriginOil Announces Revenue from First Customer
Shipment of OriginOil Quantum Fracturing System to MBD Energy Triggers Payment
July 21, 2010 – OriginOil’s Chief Technology Officer Joins Algae Industry Magazine’s Science and Industry Advisory Board
Dr. Brian Goodall, distinguished scientist and global technologist, joins expert panel
July 8, 2010 – OriginOil Announces Breakthrough Hydrogen Harvester Invention
New technology taps hydrogen generated by living algae
© 2011 OriginOil, Inc.
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Consistently Ranked in Top Algae Co’s.
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Recent roundup in Biofuels Digest of the algae extraction challenge prominently features OriginOil:
Lotta Watta: algal innovators pioneering new extraction techniques
OriginOil’s Extraction and Live Extraction
“OriginOil’s Single Step Extraction is currently implemented in the field at MBD Energy’s James Cook
University site in North Queensland, Australia…”
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Recent listing of the ten leading algae companies in Environmental Expert:
Algae: 10 Superstars With Strategies For Success
6. System Integration: OriginOil
“Extraction is a critical bottleneck in commercial algae
production,”…
OriginOil is in the top tier of leading algae companies.
© 2011 OriginOil, Inc.
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First Strategic Application:
Carbon Bio-Capture
© 2011 OriginOil, Inc.
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Industry Breakout in Carbon Bio-Capture
 OriginOil’s first strategic partner is MBD Energy, financed by Anglo American Mining to
reduce carbon emissions using algae. (Bio-CCS: Bio-based Carbon Capture and Storage)
In late 2010, OriginOil successfully completed its first research scale installation at
an MBD Energy site.
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MBD Energy has agreed to expand into a 3-phase power plant pilot project
worth about $1 million in 2011 sales to OriginOil.
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240X increase in capacity planned: OriginOil will track with MBD from a onehectare pilot to 80 hectares at each of three of Australia’s largest power plants.
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Carbon Capture represents the breakout opportunity to
build massive algae systems worldwide.
© 2011 OriginOil, Inc.
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Key Research and Commercial Partners
Department of Energy – Idaho National Laboratory
 Cooperative Research and Development Agreement (CRADA) executed on 17 February 2009
 Phase 1 Results: An unprecedented Energy Balance Model unveiled at the NAA conference in September 2009
Status: Phase 1 complete; Phase 2 and Phase 3 currently under design.
Desmet Ballestra N.V. (BELGIUM)
 An international leader in the manufacture and distribution of oil and fat processing equipment
 More than $500M in annual equipment sales
Status: The parties are operating under a signed Memorandum of Understanding for Desmet to manufacture and
distribute OriginOil’s components and systems in its 26 markets worldwide.
MBD Energy Limited (AUSTRALIA)
OriginOil will supply MBD Energy, an Australian company, with its Quantum Fracturing and Single Step Extraction
systems under a multi-phase commercialization program.
 MBD plans to serve its three Bio CCS (Carbon Capture and Storage) power station projects in Australia.
 MBD is a founding member of the Bio CCS (Carbon Capture and Sequestration) program.
 Anglo American, one of the world’s largest mining companies, is a cornerstone investor in MBD Energy.
Status: Research phase complete under multi-year master agreement; MBD has committed to a full provisioning of its
first power plant project in three phases in 2011.
© 2011 OriginOil, Inc.
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Management Team
Riggs Eckelberry – President and CEO
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Co-founder, OriginOil, Inc.
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Co-inventor, OriginOil technology
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Veteran high-technology manager
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Record high sales and brand success for YellowPages.com, Panda Software and CleanSweep
Brian Goodall, Ph.D. – Chief Technology Officer
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Over 30 years international experience in petrochemicals, renewable energy and algae sectors
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As VP at Sapphire Energy, enabled first US commercial flight using algae (Continental Airlines – 2009)
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As VP at Imperium Renewables, delivered the bio-jet fuel for first demo flight (Virgin Atlantic – 2008)
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Senior positions at Royal Dutch/Shell Group, B.F. Goodrich, Rohm & Haas and Albermarle
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Holder of more than 80 patents and winner of approximately $130 million in grants and loan guarantees
Scott Fraser – Vice President of Operations
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Veteran of enterprise sales and partnership building at Lucent and Avaya
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Veteran of concept-to-market process
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Extensive experience in technology prototyping
Jose Sanchez – Vice President of Growth and Production
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Veteran in the design and field operation of algae production systems
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As General Manager of Aurora Mexico, launched Aurora Algae’s Mexico-based field operations & R&D center
Paul Reep – Senior Technical Advisor
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Over 25 years as a senior manager in the Department of Energy National Laboratory system
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Proven facilitator of government and private sector partnerships
© 2011 OriginOil, Inc.
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Board of Directors
Riggs Eckelberry – Chairman
Ivan Ivankovich – Director
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Over 19 years of financial and operational expertise at YellowPages.com, Platinum Equity (global
acquisition firm), and venture-backed companies such as HealthAllies and TriVida
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Led and negotiated the merger of YellowPages.com with SBC and Bell South
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Serves as consulting Chief Financial Officer and advisor to several high-technology companies
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CPA and member of California Society of CPAs
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Chairman of OriginOil’s Finance and Auditing Committee
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OriginOil’s designated CFO upon institutional funding
Adam Meislik – Director
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Provides companies with expert advice and execution on financial restructurings, turnarounds, capital
markets, M&A, governance and overall business strategy
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Principal at XRoads Solutions Group, leading the Media, Energy and Technology practices
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Investment banking experience as Executive Director of CIBC World Markets, and similar positions at
Salem Partners LLC, Jefferies & Company, Inc. and Howard Weil
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Has managed over 100 mergers, acquisitions, capital transactions and restructurings
© 2011 OriginOil, Inc.
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More Similar To
Than To
A streamlined company with flexible technology, OriginOil is positioned to:
Adapt to changes in algae oil research, markets, and infrastructure
 Partner, rather than compete, with major algae oil producers
 Stay ahead of future competitors through “first mover advantage”
 Become essential to algae companies with valuable services
 Become an essential component of every algae system in the world
 Attract attention from potentials acquirers and strategic investors
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OriginOil is the strategic investment in
the algae oil market
© 2011 OriginOil, Inc.
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Delivering a Renewable Source of Oil
Anywhere, Anytime
For more information, please contact:
OriginOil, Inc.
(877) 999-OOIL
(323) 939-6645
[email protected]
© 2011 OriginOil, Inc.
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