Simple asp.net 4.5 application with owin startup not starting

I am just trying the very simple applicaiton by following example in owin and katana

I am getting the following error:

Application 'MACHINE/WEBROOT/APPHOST/TICKERAPPLICATION' with physical root 'C:\Backup\SampleTickApplication\TickerApplication\' failed to start process with commandline '%LAUNCHER_PATH% %LAUNCHER_ARGS%', ErrorCode = '0x80070002 : 0.

Can anyone help please? Thanks