REG - Agronomics Limited - GALY Raises US$ 33 Million in Series B Financing

AgronomicsAnnouncement

04/09/2024 07:00

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RNS Number : 7890C  Agronomics Limited  04 September 2024

4 September 2024

Agronomics Limited

("Agronomics" or the "Company")

GALY Raises US$ 33 Million in Series B Financing

Agronomics (LON:ANIC), a leading listed company in the field of cellular
agriculture, is pleased to report that its portfolio company GALY CO. ("GALY")
has announced that it has closed an oversubscribed US$ 33 million Series B
financing led by Breakthrough Energy Ventures LLC, with additional
participation from new investors H&M Group Ventures and Industria de
Diseño Textil, S.A. (through Mundi Ventures).

Founded in 2019 with a mission to find ethical and sustainable agricultural
solutions, GALY Cotton is the company's first product targeting conventional
cotton practices. GALY Cotton is a new material that fully replicates
traditional cotton in quality, retaining its exact attributes because it
originates from an actual plant, all while offering ESG benefits, customisable
quality and a clear roadmap to reach cost parity.

 

The funds from the Series B round will primarily fuel the expansion of GALY's
research and development on its innovative cellular agriculture platform and
its flagship product, GALY Cotton, which uses 99% less water and 97% less land
than traditional cotton while emitting 77% less CO(2), as it advances towards
pre-industrial quality and scale.

 

GALY explains that it has also secured millions of dollars in proof-of-concept
agreements with top industry players and a 10-year, US$ 50 million offtake
agreement with Suzuran Medical Inc, a Japanese medical supplies manufacturer,
for the sourcing of GALY Cotton.

 

In aggregate, Agronomics has invested US$ 1.5 million in GALY across its
Pre-Series A and Series A rounds. Subject to audit, Agronomics will, as a
result of this Series B round, carry this position forward at a book value of
£2.6 million representing a MOIC of 2.2x and an IRR of 28.0%. Agronomics now
holds an equity stake of 3.3% in GALY on a fully diluted basis, accounting for
approximately 1.6% of Agronomics' last stated Net Asset Value on 30 June 2024
(https://polaris.brighterir.com/public/agronomics/news/rns/story/xjdzgkx) .

 

Luciano Bueno, GALY's CEO, said:

"We are thrilled to have investors who recognise the crucial role that our
climate adaptation technology will play in our daily lives. Climate change
exposes the fragility of agricultural supply chains, and the recent rise in
cocoa prices is a stark reminder of the new normal we face. Unfortunately,
it's not a matter of 'if,' but 'when.' Soon, the world will face increased
volatility in conventional agriculture due to more frequent extreme weather
conditions. When that time comes, GALY will be ready, better equipping our
economy to withstand these shocks."

 

 Jim Mellon, Co-Founder and Executive Chair of Agronomics, said:

"The production of cotton accounts for the largest uses of water and
pesticides of any agricultural product, and GALY, with its biomanufacturing
cotton, is offering a sustainable solution which could reduce the
environmental burden of cotton production across multiple industries such as
medical supplies and textiles. This announcement is an exciting milestone for
GALY and we are excited to see them enter a new stage as they scale up
production and work towards commercialisation."

 

To read GALY's full press release please see the following link:

https://www.globenewswire.com/news-release/2024/09/03/2939864/0/en/GALY-Raises-33-Million-in-Oversubscribed-Series-B-Financing-to-Advance-its-Cellular-Agriculture-Platform.html
(https://www.globenewswire.com/news-release/2024/09/03/2939864/0/en/GALY-Raises-33-Million-in-Oversubscribed-Series-B-Financing-to-Advance-its-Cellular-Agriculture-Platform.html)

 

About GALY CO.

Launched in 2019, GALY is a climate tech company dedicated to developing novel
cellular agriculture products. Starting with cotton-which accounts for 2.5% of
the world's total arable land, consumes 25% of the world's agrochemicals,
requires an estimated 10,000 litres of water per kilogram produced, and faces
traceability issues due to unsafe labour conditions-the company has
successfully developed a minimum-viable product and is working on both
enhancing the product's quality parameters and scaling up production.
Recognising the potential of its platform through its work with cotton, GALY
has expanded its foundational technology to other crops in industries such as
food and beverages, among many other possibilities.

About Agronomics

Agronomics is a leading London-listed company focussing on investment
opportunities within the field of cellular agriculture. 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/ (https://agronomics.im/) .

For further information please contact:

 Agronomics Limited   Beaumont Cornish Limited  Canaccord Genuity Limited       Cavendish Capital Markets Limited  Peterhouse Capital Limited  SEC Newgate
 The Company          Nomad                     Joint Broker                    Joint Broker                       Joint Broker                Public Relations
 Jim Mellon           Roland Cornish            Andrew Potts                    Giles Balleny                      Lucy Williams               Bob Huxford

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

                                                Alex Aylen (Head of Equities)   Charlie Combe
 +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

 

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

 

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