REG - Agronomics Limited - Agronomics Follow on Investment in GALY CO.

AgronomicsAnnouncement

14/03/2022 07:01

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RNS Number : 5858E  Agronomics Limited  14 March 2022

14th March 2022

Agronomics Limited (https://agronomics.im/)

("Agronomics" or the "Company")

 

Agronomics Follow on Investment in GALY CO.

 

Agronomics, the leading listed company focused on the field of cellular
agriculture, is pleased to announce it has invested a further US$ 1 million
into GALY CO. ("GALY"), an existing portfolio company focused on plant cell
culture.  The Company will subscribe for 364,710 Series A Preferred Stock
(the "Subscription") using cash from the Company's own resources. Following
this investment, Agronomics will own an 4.11% equity stake in GALY.

 

GALY is a leading plant cell culture company with disruptive technology for
growing cotton from cells in a laboratory facility rather than utilising
traditional soil-based methods. It is headquartered in Boston, US, with
research also in Sao Paulo, Brazil.

 

Agronomics first invested in GALY in 2020, with a US$ 500,000 investment in
the form of a SAFE ("Simple Agreement for Future Equity"). This SAFE has
converted to 909,090 Series A Preferred Shares, representing an IRR of 79% and
Multiple on Invested Capital of 4.94.

 

In aggregate, Agronomics will hold 1,273,800 Series A Preferred Stock in GALY.
Subject to audit, Agronomics will now carry this aggregate position in its
accounts at a book value of US$ 3.47 million, representing an unrealised gain
on cost of US$ 1.97 million. The holding will account for approximately 1.82%
of Net Asset Value.

 

Jim Mellon, co-founder and executive director of Agronomics commented:-

 

"We're delighted to invest further in GALY to help drive their mission to
revolutionise cotton production, safeguard our environment, and disrupt
conventional agriculture. GALY has successfully demonstrated its ability to
produce cotton from plant cells and Agronomics sees huge potential for other
opportunities to arise from this technology. We're looking forward to working
with the team on their exciting new growth phase."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014 on market abuse. Upon the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

About GALY (https://recruit.galy.co/)

GALY is producing cotton grown from cells in a facility, not plants on a
field. They have developed a process to grow cotton (and other products) in
vitro that is 10x faster, uses 80% less resources, independent of land or
weather and with the potential for 5x-10x higher margins than traditional
products.

 

About Agronomics (https://agronomics.im/)

Agronomics is the leading listed company focused on the field of cellular
agriculture, inclusive of cultivated meat, plant cell culture and precision
fermentation. The Company has established a portfolio of 20 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/
(https://clicktime.symantec.com/368cVqxx3R6vTFuHpf6MSE66Gi?u=https%3A%2F%2Fagronomics.im%2F)
.

 

About Cellular Agriculture

Cellular agriculture is the production of agricultural 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$ 2 billion has been invested worldwide since the
industry's inception in 2016.

 

For further information please contact:

 Agronomics                                       Beaumont              Cenkos                Peterhouse Capital

 Limited                                          Cornish Limited       Securities Plc        Limited               TB Cardew
 The Company                                      Nomad                 Joint Broker          Joint Broker          Public Relations
 Richard Reed                                     Roland Cornish        Giles Balleny         Lucy Williams         Ed Orlebar

 Denham Eke                                       James Biddle          Michael Johnson       Charles Goodfellow    Joe McGregor
 +44 (0) 1624 639396                              +44 (0) 207 628 3396  +44 (0) 207 397 8900  +44 (0) 207 469 0936  +44 (0) 20 7930 0777

 info@agronomics.im (mailto:info@agronomics.im)                                                                     +44 (0) 7738 724 630

                                                                                                                    agronomics@tbcardew.com (mailto:agronomics@tbcardew.com)

 

 

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