REG - Agronomics Limited - Agronomics Leads All G Foods Series A Financing

AgronomicsAnnouncement

04/08/2022 07:00

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RNS Number : 8196U  Agronomics Limited  04 August 2022

4th August 2022

Agronomics Limited
(https://www.google.com/url?q=https://www.google.com/url?q%3Dhttps://agronomics.im/%26amp;sa%3DD%26amp;source%3Deditors%26amp;ust%3D1657614230862964%26amp;usg%3DAOvVaw2TkfGQa8KGoLNJJWzjk8Hk&sa=D&source=docs&ust=1657614230896197&usg=AOvVaw37J8iTaY25W_iL5O-nNu0D)

("Agronomics" or the "Company")

 

Agronomics Leads All G Foods Series A Financing Round

 

Agronomics, the leading listed company focused on the field of cellular
agriculture, is pleased to announce it has led All G Food Holding Pty Ltd
(https://allgfoods.com/) 's ("All G Foods") Series A financing round with a AU
$15 million (approximately £8.7 million) investment (the "Subscription"),
subscribing for 2,803,214 Series A Preferred Shares. The Subscription is
conditional on All G Foods' shareholder approval which is expected in Q3 2022.
Agronomics will own 8.01% of All G Foods on a fully diluted basis following
close of the round. The Subscription will be made using cash from the
Company's own resources and will represent an estimated portfolio weighting
based on the Company's last reported Net Asset Value of 5.8%.

 

All G Foods is an alternative protein, Asia-Pacific company focused on the
commercialisation of its precision fermentation platform designed to create
sustainable dairy products and dairy proteins. It also owns a rapidly growing
plant-based meat business Love BUDS™ which it is commercialising through key
channels throughout Asia-Pacific including the Woolworths group.

 

All G Foods, based in Sydney, Australia was founded in 2020 by CEO Jan Pacas.
Jan is an experienced entrepreneur, previously founding and building
successful businesses, with multiple successful exits, including Mad Paws
Holdings Limited (Mad Paws (https://www.madpaws.com.au/) ) and Flare HR Pty
Ltd (Flare (https://flarebenefits.com/) ). All G Foods is aiming to be the
first company in Asia-Pacific to commercialise next generation dairy proteins.
Expanding off the back of its existing plant-based meat business, All G Foods
will focus on markets in the Asia Pacific region, utilising its existing
distribution channels to increase the reach of its animal-free dairy products.
Its technical team, led by Dr Roman Buckow, and Dr Jared Raynes, a former food
chemistry and dairy lead at the Commonwealth Scientific and Industrial
Research Organisation (CSIRO (https://www.csiro.au/en/) -- Australia's
government agency responsible for scientific research), is already showing an
accelerated path toward commercialisation from the scale-up of its dairy
proteins, including whey and caseins.

 

Agronomics has identified All G Foods as having leading dairy precision
fermentation expertise and notably a focus on casein micelle formation, the 3D
spherical assembly of casein proteins critical for full functionality in dairy
products, which to date has been a challenge for other companies in the sector
globally. Agronomics recognises the need for multiple successes in the
precision fermentation dairy category, to disrupt the US $700 billion global
dairy market.

 

Agronomics will join a key list of existing investors, including W23 Pty
Limited ("W23 (https://www.w23.vc/) "), the venture capital and innovation
fund of Woolworths Group Ltd, Australia's largest supermarket chain and the
Clean Energy Finance Corporation (CEFC (https://www.cefc.com.au/) ),
Australia's AU$ 10 billion 'green bank' established to facilitate investment
in clean energy sector, who both invested in the seed round. The remaining
investors of the Series A funding round will be announced in due course. We
believe the total funding will make All G Foods one of the best funded
companies in the cellular agriculture sector in Asia-Pacific.

 

New Agrarian Company Limited "New Agrarian", the affiliate of Agronomics, will
be investing AUD $10 million (approximately £5.8 million), on identical terms
to Agronomics for 5.34%. In aggregate, Agronomics and New Agrarian will own
13.34% of All G Food on a fully diluted basis and have the right to a board
seat following the close of the financing round.

 

Since this Subscription is considered a Substantial Transaction under AIM Rule
12, this announcement requires certain disclosures under Schedule Four. All G
Foods is an early-stage company generating small revenues with operating costs
of approximately AU$ 476,000 per month, and total assets as at 30 June 2022 of
AU$ 8.8 million, including cash or near cash of AU$ 4.9 million with no
material liabilities.

 

Jim Mellon, executive director of Agronomics commented:-

 

"We are delighted to be expanding our portfolio to include All G Foods, and
increasing our exposure to the readily disruptable dairy industry, which is
large enough to support multiple winners across different jurisdictions. We
recognise Asia-Pacific as a growing market for alternative proteins and
realise the need for further focus on precision fermentation dairy given the
enormous markets and the cruelty of conventional dairy farming. Further, with
our investment in Liberation Labs, we are taking a proactive approach to
ensure the infrastructure and broader ecosystem is in place for industrial
production by the time our portfolio companies are ready for large scale
commercialisation."

 

Jan Pacas, founder and CEO of All G Foods added:-

 

'We could not be happier with Agronomics leading our Series A round due to
their wealth of experience in funding the cellular agriculture sector. When
looking for investment it is critical for us that our investors share our
vision for developing technology that can change the way we impact the planet
through categories that are simply not sustainable as our populations grow. We
are confident with investors like this we are able to accelerate our
commercialisation objectives and be the first in Asia-Pacific'

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

About All G Foods (https://allgfoods.com/)

At All G Foods we know that proteins created through animal agriculture can't
feed the next generations of humans. That's why our mission is to design a
sustainable food future - one that is limitlessly good. We believe the
solution to the growing protein demand is innovative, affordable, delicious,
nutritious, and sustainable alternative proteins, so we're leading
technological innovations for the creation of next generation dairy and meat.
We're on a trajectory to develop the world's first-to-market identical dairy
milk, entirely animal free through precision fermentation and doing
plant-based differently to any other brand with our Love BUDS™ products. Our
bunch of thinkers, doers, problem solvers, investigators, futurists, helpers
and organisers all thrive here at All G Foods, and our differences make us
better. Our people love what they do, love working with each other, and love
leaving an imprint for a better future.

 

About Agronomics
(https://www.google.com/url?q=https://www.google.com/url?q%3Dhttps://agronomics.im/%26amp;sa%3DD%26amp;source%3Deditors%26amp;ust%3D1657614230868787%26amp;usg%3DAOvVaw3mASLRb5PoGSVFyynPDE3Q&sa=D&source=docs&ust=1657614230897307&usg=AOvVaw2gC6cdzFMtEF7FxFWoYEHt)

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/
(https://www.google.com/url?q=https://www.google.com/url?q%3Dhttps://clicktime.symantec.com/368cVqxx3R6vTFuHpf6MSE66Gi?u%253Dhttps%25253A%25252F%25252Fagronomics.im%25252F%26amp;sa%3DD%26amp;source%3Deditors%26amp;ust%3D1657614230869430%26amp;usg%3DAOvVaw0JVrLmcU8-NBpfa7VILSgF&sa=D&source=docs&ust=1657614230897432&usg=AOvVaw25knMFCSK3TfHJGV6BgRFB)
.

 

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 $1.8 trillion investment will be required in order to
produce just 10% of the world's protein using this technology, means that we
are on the cusp of a multi-decade flow of capital to build out manufacturing
facilities. Funding in the field of cellular agriculture is accelerating,
however still less than US$ 4 billion has been invested worldwide since the
industry's inception in 2016.

 

For further information please contact:

 

 Agronomics Limited   Beaumont Cornish Limited  Canaccord Genuity Limited       Cenkos  Securities Plc   Peterhouse Capital Limited  TB Cardew
 The Company          Nomad                     Joint Broker                    Joint Broker             Joint Broker                Public Relations
 Richard Reed         Roland Cornish            Andrew Potts                    Giles Balleny            Lucy Williams               Ed Orlebar

 Denham Eke           James Biddle              Harry Rees                      Max Gould                Charles Goodfellow          Alistair Walker

                                                Alex Aylen (Head of Equities)   Michael Johnson
 +44 (0) 1624 639396  +44 (0) 207 628 3396      +44 (0) 207 523 8000            +44 (0) 207 397 8900     +44 (0) 207 469 0936        +44 (0) 20 7930 0777

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

                                                                                                                                     agronomics@tbcardew.com

 

 

 

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