RCS - Agronomics Limited - Clean Food Group Collaboration with Alianza

AgronomicsAnnouncement

08/08/2023 08:30

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RNS Number : 6399I  Agronomics Limited  08 August 2023

08 August 2023

Agronomics Limited

("Agronomics" or the "Company")

Portfolio Company Update: Clean Food Group announces strategic collaboration
with LATAM food giant, Alianza Team

Agronomics (LSE: ANIC), the leading listed company focused on the field of
cellular agriculture, is pleased to announce that portfolio company Clean Food
Group, focused on commercialising fermentation-derived palm oil, will receive
new investment and entered a new strategic collaboration with leading South
American food company, Alianza Team (https://www.alianzateam.com/en/) .

●    Clean Food Group and Alianza Team will develop products that meet
the industry's need for sustainable, functional and cost-competitive oils and
fats to replace commonly used and agriculturally intensive food ingredients.

●    As part of the strategic collaboration, Alianza Team is investing in
Clean Food Group's current "Pre Series A" funding round.

The Company has invested a total of £900,500 into Clean Food Group since
inception, which is currently carried at £6.27 million, including an
unrealised gain on cost of £5.37 million. This position accounts for
approximately 4% of the last published Net Asset Value of Agronomics
(30/06/23). Agronomics has an equity ownership of 30.59% on a fully diluted
basis in Clean Food Group.

The full announcement is set out below without any material changes:

UK food-tech business Clean Food Group announces strategic collaboration with
LATAM food technology specialist, Alianza Team

Collaboration includes investment in Clean Food Group's current funding round
and will accelerate market availability of healthy and sustainable oils and
fats products for global food manufacturers

London, 08 August 2023, Pioneering UK-based bio-tech business Clean Food Group
is pleased to announce a new investment and strategic collaboration with
Alianza Team, the Latin American food production and lipid-based technology
expert, a leading company in the world of lipids, nutrition and frozen bakery.

The long-term collaboration agreement will accelerate Clean Food Group's
pathway to commercialisation and will combine Clean Food Group's expertise in
the production of microbial oils with Alianza Team's 75 years' experience and
expertise in developing functional, value-add oils and fats products for the
world's leading food manufacturers. Together, Clean Food Group and Alianza
Team will develop, and bring to market, products which meet the industry's
need for sustainable, functional and cost competitive oils and fats to replace
commonly used and agriculturally intensive food ingredients.

As part of the strategic collaboration, Alianza Team is investing in Clean
Food Group's current "Pre series A" funding round.  The funding round, which
is being supported by both new and existing investors, is expected to close in
August 2023.  Capital raised from this funding will enable Clean Food Group
to accelerate the scale up of its technology platform whilst advancing
critical regulatory and commercial pathways. Clean Food Group expects to
complete a Series A funding in 2024, by which time the business will have
validated technology at a commercial scale and have clear line of sight to
near term revenue generation. The business will raise funds at Series A to
support the build out of a commercial scale manufacturing facility.

Clean Food Group's technology platform is the result of eight years of
pioneering research led by Professor Chris Chuck, Technical Lead at Clean Food
Group. The proprietary technology platform uses proven, scalable yeast strains
and fermentation technology and uses food waste as its food source, to deliver
sustainable alternatives to traditional oil and fat ingredients.

Alex Neves, Co-founder and CEO of Clean Food Group says: "We are delighted to
be sharing the news of this investment and collaboration with Alianza Team
today. The investment is further validation of Clean Food Group's technology
platform and is a key component in enabling the company to proceed to a
successful close of our current funding round. The strategic collaboration
with Alianza Team will drive forward our commercialisation strategy and
support our objective to bring sustainable oils and fats on to the market, at
commercial scale, within the next three years."

Luis Botero, President and CEO at Alianza Team says: "Alianza Team is
committed to creating a new future of healthy and sustainable food choices for
our customers. We are excited to be investing in and collaborating with Clean
Food Group, an organisation where we believe our shared core values of
innovation and sustainability will deliver healthier, more nutritional foods
to improve our food systems for future generations."

Jim Mellon, Co-Founder and Executive Director of Agronomics; Co-Chairman of
Clean Food Group, says: "This strategic collaboration marks an important
milestone for Clean Food Group and Agronomics in our mission to revolutionise
the food industry. By combining Clean Food Group's cutting-edge technology
with Alianza Team's extensive expertise in developing recognised, branded food
products, this collaboration brings us a significant step closer to
commercialisation while unlocking the potential for a future where our food
choices will be more sustainable."

 

About Clean Food Group:

Clean Food Group is a UK-based food-tech business delivering sustainable oils
and fats solutions to the world's food and cosmetics manufacturers, with the
mission to deliver scalable, healthier, competitively priced ingredients that
have a positive impact on the economic, environmental, and social health of
the planet.

Clean Food Group is founded by a team with key experience in growing bio-tech,
food industry and retail businesses supported by established venture capital
and family office investors with a track record supporting fast-growth
start-up companies in highly regulated industries. Clean Food Group's
proprietary technology platform has been developed as a result of 8 years of
pioneering research by Professor Chris Chuck, technical lead at Clean Food
Group, and the University of Bath.

About Alianza Team

Alianza Team is a multinational leader in the lipid, nutrition and frozen
bakery sector, with over 75 years of experience. With operations in Colombia,
Mexico, Chile and the United States, it stands out for its extensive expertise
in the development of innovative products, services and technological
solutions. Committed to generating value and making a difference in the
market, they have four key business units: Team Solutions, Team Foods, Team
Caribe and BredenMaster. Their commitment with social, economic and
environmental sustainable development shows how they are fulfilling their
higher purpose of Nurturing a Better Tomorrow.

About Agronomics

Agronomics is a leading listed company with a focus on cellular agriculture
and cultivated meat. The Company has established a portfolio of over 20
companies in this rapidly advancing sector. It seeks to invest 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 and
improve food security for the world's expanding population. A full list of
Agronomics' portfolio companies is available at https://agronomics.im/.

 

About Cellular Agriculture

Cellular Agriculture is the production of agriculture products directly from
cells, as opposed to raising an animal for slaughter or growing crops. This
encompasses cell culture to produce cultivated meat and materials, and
fermentation processes that harness a combination of molecular biology,
synthetic biology, tissue engineering and biotechnology to massively simplify
production methods in a sustainable manner.

Over the coming decades, the source of the world's food supply traditionally
derived from conventional agriculture is going to change dramatically. We have
already witnessed the first wave of this shift with the consumer adoption of
plant-based alternative proteins but today, we are on the cusp of an even
bigger wave of change. This is being facilitated by advances in cellular
agriculture. This change is necessary, given scientists' claims that if we
maintain existing animal protein consumption patterns, then we will not meet
the Paris Agreement's goal of limiting warming to 1.5℃.

AT Kearney, a global consultancy firm, projects that cultivated meat's market
share will reach 35% by 2040. This combined with the Good Food Institute's
estimate that a US $1.8 trillion investment will be required in order to
produce just 10% of the world's protein using this technology, means that we
are on the cusp of a multi-decade flow of capital to build out manufacturing
facilities. Funding in the field of cellular agriculture is accelerating,
however, still, less than US$ 5 billion has been invested worldwide since the
industry's inception in 2016.

For further information please contact:

 Agronomics           Beaumont              Canaccord Genuity Limited       Cenkos                Peterhouse Capital    SEC Newgate

 Limited              Cornish Limited                                       Securities Plc        Limited
 The Company          Nomad                 Joint Broker                    Joint Broker          Joint Broker          Public Relations
 Richard Reed         Roland Cornish        Andrew Potts                    Giles Balleny         Lucy Williams         Bob Huxford

 Anthony Hughes
 Denham Eke           James Biddle          Harry Rees                      Michael Johnson       Charles Goodfellow

                                            Alex Aylen (Head of Equities)
 +44 (0) 1624 639396  +44 (0) 207 628 3396  +44 (0) 207 523 8000            +44 (0) 207 397 8900  +44 (0) 207 469 0936  agronomics@secnewgate.co.uk

 info@agronomics.im

 

 

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