TIDMANIC
RNS Number : 4787D
Agronomics Limited
20 October 2022
20(th) October 2022
Agronomics Limited
("Agronomics" or the "Company")
Investment in Liberation Labs US $ 20 million Seed Round
Agronomics (ANIC:LSE), the leading listed company focused on the
field of cellular agriculture, is pleased to announce it has today
executed an unconditional subscription agreement to invest up to
US$ 7 million (the "Subscription") in the US$ 20 million Seed
funding round of precision fermentation contract manufacturer
Liberation Labs Holdings Inc ("Liberation Labs"). The Subscription
will be made in tranches with the initial investment of US$ 3.5
million occurring yesterday, and the remaining US$ 3.5 million
subject to call at Liberation Labs' discretion at any time within
90 days of the initial close. Acting as co-lead investor is Siddhi
Capital , a prominent and highly respected investor in innovative
food products and technologies. Other investors including CPT
Capital have also participated with additional investors
anticipated to participate by year end. The Subscription will be
made using cash from the Company's own resources.
In June 2022 , Agronomics invested US$ 627,000 in Liberation
Labs' initial round of financing for a 47% equity interest. Subject
to audit, Agronomics' original investment, inclusive of the initial
close of the Subscription, will be carried at US$ 18.9 million,
including an unrealised gain of US$ 14.8 million. Following the
initial investment of $3.5 million and a 100,000 for 1 stock split
of Liberation Labs shares, the Company will hold a total of
4,700,000 ordinary shares and 1,067,074 seed preferred shares, with
an equity stake of 38.5% on a fully diluted basis. The aggregate
investment will account for approximately 9.7% of Agronomics' 30
September 2022 Net Asset Value (as adjusted for this investment).
The Company will make a further announcement should the second
tranche of the Subscription be advanced.
Liberation Labs was formed to address the acute shortage in
precision fermentation capacity for the production of proteins for
use in food, including dairy, egg and other proteins. In addition
to being in extremely short supply, the fermentation capacity being
used today was built for other purposes, mainly pharmaceuticals,
and does not fit the need of most precision fermentation proteins.
Many of the facilities currently in use are over 40 years old, and
do not have the modern downstream equipment to drive quality,
yield, and production efficiency needed to compete in a global
marketplace. Further, much of this existing infrastructure is
located in Europe, where the sharp increase in energy prices is
calling into question the economic viability of these
facilities.
Since its formation, Liberation Labs has made rapid progress in
building out its team and capabilities and will soon announce a
site in the US Midwest where it intends to construct its first
600,000 litre Launch Facility, the initial step in a plan that has
Liberation Labs targeting the installation of over 24 million
litres of fermentation capacity over the coming decade. The US has
been prioritised given the shortage of contract manufacturing
capacity, the size of the market and because there is an abundance
of competitively priced sugar, power and labour. The market is also
more mature than other major jurisdictions with the US Food &
Drug Administration having already approved the first high
inclusion precision fermentation produced dairy and egg proteins,
from companies such as Perfect Day , Remilk , The EVERY Company and
others, each of which address multi-hundred billion dollar
markets.
Liberation Labs will use the proceeds from the Seed round to
finalise its site selection, complete pre-construction engineering,
order long-lead equipment, and continue to build out its team. The
company further expects to begin the process of contracting
fermentation capacity for its first facility, with an eye towards
having that volume fully committed ahead of a planned 2024
operational launch.
Jim Mellon, executive director of Agronomics commented:-
"We are excited to continue our support of Mark and Etan at
Liberation Labs. We believe they are on a path to deliver the
world's first large scale fermentation facility that is purpose
built for food applications. This large-scale infrastructure is one
of the final bottle necks in the broad-based adoption of precision
fermentation proteins as it unlocks the path to cost
competitiveness with conventional production methods."
Mark Warner, co-founder and CEO of Liberation Labs added:-
"We are thrilled to have expanded our cap table with some of the
best investors in the alternative-protein space. Liberation Labs
will use these funds to continue our heads-down approach towards
getting our first facility up and running by the end of 2024."
Since the Subscription is considered a Substantial Transaction
under AIM Rule 12, this announcement requires certain disclosures
under Schedule Four. Liberation Labs is an early-stage company with
no revenues and operating costs of approximately US$ 75,000 per
month, and total assets as at 30 September 2022 of approximately
US$ 735,000 with no material liabilities.
New Agrarian Company Limited, an affiliate of Agronomics, has
also signed an unconditional subscription agreement to invest up to
US$ 3 million in Liberation Labs on identical terms and tranching
as Agronomics.
About Liberation Labs
Liberation Labs is commercialising precision fermentation with a
global network of purpose built, international manufacturing
facilities that enable the next wave of biotechnology advancements
to produce alternative protein at scale.
Our cutting-edge process combining modern technology and design
brings reliable, first-for-purpose approach, and cost-effective
solutions that meet consumer demand across the world.
Founded by industry pioneers with a combined 50 years of
experience, Liberation Labs is powering a new, innovative way
forward that sets the standard for the precision food fermentation
industry and has a lasting impact on achieving collective
sustainability goals.
About Siddhi Capital
Siddhi Capital is a leading Food and Beverage growth equity firm
that combines its investment and operating expertise to accelerate
growth and unlock value for our stakeholders. They invest in
visionary entrepreneurs and businesses that are reshaping the
landscape of food with innovative products and technologies. For
more information about Siddhi Capital, please visit
www.siddhicapital.co .
About Agronomics
Agronomics is a leading listed alternative proteins company with
a focus on cellular agriculture and cultivated meat. The Company
has established a portfolio of 24 companies at the Pre-Seed to
Series C stage in this rapidly advancing sector. It seeks to secure
minority stakes in companies owning technologies with defensible
intellectual property that offer new ways of producing food and
materials with a focus on products historically derived from
animals. These technologies are driving a major disruption in
agriculture, offering solutions to improve sustainability, as well
as addressing human health, animal welfare and environmental
damage. This disruption will decouple supply chains from the
environment and animals, as well as being fundamental to feeding
the world's expanding population. A full list of Agronomics'
portfolio companies is available at https://agronomics.im/ .
For further information please contact:
Agronomics Beaumont Canaccord Cenkos Peterhouse
Limited Cornish Genuity Securities Capital TB Cardew
Limited Limited Plc Limited
The Company Nomad Joint Broker Joint Broker Joint Broker Public Relations
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Richard Roland Cornish Andrew Potts Giles Balleny Lucy Williams
Reed James Biddle Harry Rees Max Gould Charles Ed Orlebar
Denham Eke Alex Aylen Michael Goodfellow Alistair
(Head of Johnson Walker
Equities)
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+44 (0) 20
7930 0777
+44 (0) +44 (0) +44 (0) +44 (0) +44 (0) +44 (0) 7738
1624 639396 207 628 207 523 207 397 207 469 724 630
info@agronomics.im 3396 8000 8900 0936 agronomics@tbcardew.com
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