5 aveNaNthraMides - Our flagship  i NgredieNt Avenanthramides are a largely unknown group of therapeutic molecules found exclu- sively in oats, yet when it comes to our customers, it is how we are best recognized.  Ceapro is the only commercial manufacturer of avenanthramides worldwide. Given their  potent anti-inflammation, anti-histaminic, and anti-oxidant properties, these molecules  are responsible for the therapeutic benefits and relief of symptoms in skin conditions  resulting from eczema, chicken pox, and insect bites. Recent findings from third parties are also of the highest interest to Ceapro. Their data  suggest that avenanthramides, when taken orally, could be beneficial in serious con- ditions like inflammatory bowel syndrome, atherosclerosis, colon cancer, and joint in- flammation. These findings led to the idea that avenanthramides could be developed as  an active pharmaceutical ingredient (API). In order to achieve this, we need to produce  them in adequate quantities to allow for a bioavailable formulation that will enable us  to conduct clinical trials to demonstrate their safety and efficacy in targeted indications.  So far, Ceapro has developed a robust process to extract avenanthramides from oats and  this product has been sold exclusively to the personal care market. Due to the scarcity  of suitable oats to extract, there have only been sufficient quantities available to serve  the personal care market even though tremendous opportunities may exist in the func- tional food and pharmaceutical markets. We expect to change that in the near future. During 2012, Ceapro entered into two key agreements with Agriculture  and Agri-Food Canada (AAFC) that have the potential to be transfor- mative for Ceapro and allow for the exploitation of huge opportuni- ties not possible otherwise. The first was a form of patented malting  technology and the second was a new variety of oats (non-GMO) with  very unique characteristics. When these two technologies are used to- gether, Ceapro will have the ability to increase the content and con- centration of avenanthramides from typical very low, non-commercial  levels to levels far in excess of the best commercial oats on the market  and that Ceapro has used to date. Studies conducted at two Univer- sity hospitals in the United States have determined that oats will need  higher levels of avenanthramides in order to obtain a dose with signifi- cant beneficial effects. The positive implications of these technologies  are very substantial and include: Agriculture and Agri-Food Canada (AAFC) Alliances Avenanthramides are a good illustration of Ceapro’s innovative capac- ity that, when combined with other technology advancements, can be- come a multi-platform product in large unmet health sectors. 3.  The possibility to get into the trendy “botanical drugs” area to ad- dress unmet medical needs, especially with our new purification  techniques currently being scaled up. 2.  The ability to consider avenanthramide-rich oat products as a ther- apeutic food or a nutraceutical as a solution to some of the medical  indications.  1.  A large increase in extraction yield and gross margin for the exist- ing business.