REG - Agronomics Limited - Net Asset Value calculation as at 31 December 2024

AgronomicsAnnouncement

04/02/2025 07:15

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RNS Number : 7464V  Agronomics Limited  04 February 2025

 

4th February 2025

Agronomics Limited

("Agronomics" or the "Company")

Net Asset Value calculation as at 31 December 2024

Agronomics Limited (AIM:ANIC), a leading listed company in the field of clean
food, announces that its unaudited Net Asset Value ("NAV") calculation as at
closing on 31 December 2024 was 14.93 pence per share, a 5.21% decrease
from 15.73 pence per share at 30 September 2024. Net Assets stand at £151
million, including investments of £141 million and uninvested cash and
short-term deposits of £10 million.

The share price of 3.88 pence at 31 December 2024 represents a discount of
74% to the NAV per share on the same date. The average discount to NAV per
share over the last 12-month period was 60%. Under IFRS, the Company's
unquoted investments are generally carried at cost or the most recent priced
funding round.

The Board notes the c. £8.1 million decline in the Company's NAV during the
quarter which relates primarily to the following:

-     A reduction of £4.3 million in the value of the Company's holding
in Solar Foods Oy ("Solar Foods") which is listed on Nasdaq First North Growth
Market Finland;

-     An unrealised FX gain of £4.3 million following revaluation of
investments to month end spot rate, where we hold certain of our investments
in USD, EUR and AUD, due to negative movements in these currencies against the
Company's reporting currency of Pound Sterling in the quarter;

-     A write-down of Agronomics' position in Geltor Inc of £6.8 million,
following a Series A funding round that closed at a 95% discount to the
previously closed round. This write-down was recognised in the 2024 audited
results as part of the year end audit procedures after publication of the 30
September 2024 NAV which was not restated;

-     A reversal of an unrealised gain of £0.9 million on portfolio
company CellX Limited. This reversal was recognised in the 2024 audited
results as part of the year end audit procedures after publication of the 30
September 2024 NAV which was not restated; and

-     Cash balances reduced by £0.4 million relating to ongoing running
costs, and the cash balances at 31 December 2024 were £10.2 million.

During the period, no fees were payable or accrued in accordance with the
Shellbay Investments Limited Agreement. These fees are solely payable when
there is an annual increase in the NAV: further details are included in the
2024 annual report.

Investment Portfolio review

During the 3-month period to 31 December 2024, one of Agronomics' portfolio
companies raised additional funding:

·    On 15 October 2024, Liberation Labs Holdings Inc ("Liberation Labs")
raised a further US$ 3.5 million for the continued development of their
Richmond, Indiana site via a Secured Promissory Note, including a US$ 2.0
million subscription from Agronomics using its own cash resources. As
announced post period end on 30 January 2025, Liberation Labs raised a further
US$ 31.5 million by way of convertible notes, bringing to total raise to US$
50.5 million.

In addition, the following key milestones were achieved by portfolio companies
during the 3-month period:

·    On 27 November 2024, the Company announced that All G Co Holdings Pty
Limited ("All G") became the first company in the world to receive regulatory
clearance for the sale of recombinant bovine lactoferrin in China. This
clearance should allow initial revenue streams prior to a Series B raise.

Finance Update

During the quarter, warrants were exercised for a total of £1,713, with a
total of 5,711 new ordinary shares being issued.

Jim Mellon, Executive Chair of Agronomics, commented: -

"Since his appointment as interim Chief Executive Officer in September of
Shellbay, the Company's adviser, Dr Philip Boigner has continued to provide
his expertise to support a number of portfolio companies with significant
fundraise closures and achieving operational milestones.

In the first month of the year, we have already announced an additional €35
million loan from the European Investment Bank for our portfolio company Formo
- a significant sum which reflects the recognition of Formo's commercial
roadmap and progress to date. In addition, Liberation Labs' recent US$ 50.5
million fundraise, which welcomed new substantial investors, will enable the
completion of construction of the company's first biomanufacturing plant in
Richmond, Indiana, helping serve the demand for diversified and secure supply
chains from governments and large corporations alike. These are two examples
of the positive progress being witnessed across the portfolio as many get set
to begin the revenue generation we expect to see this year.

As we informed the market in our last update, this period has seen the
expected write-downs of our smaller portfolio holdings due to the difficult
macroeconomic headwinds and challenging fundraising environment experienced
over the last few years. This is the natural case within any diversified
investment company, and we continue to take great assurance about the overall
potential of the portfolio, which continues to go from strength to strength
with significant progress made by a growing number of maturing assets.

Agronomics continues to have a strong cash balance and has no intention to
raise capital while trading at a discount to NAV. We are confident of the
future."

 

                                                          Unaudited to 31 December 2024

                                                          £
 Current Assets
                            Investments                   140,591,025
                            Uninvested cash and deposits  10,190,487
                            Trade and other receivables   95,463
 Current Liabilities
                            Trade and other creditors     (161,389)
 Net Assets                                               150,715,586
 Capital and Reserves
                            Share capital                 1,009
                            Share premium                 136,171,078
                            Retained earnings             14,543,499
 Net assets                                               150,715,586
 Shares in Issue                                          1,009,417,295
 Net Asset Value per share                                14.93 pence

 

The quoted investments within the portfolio are valued under IFRS at bid
price.

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 Agronomics

Agronomics is a leading London-listed company focusing on investment
opportunities within the field of clean food. 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           Beaumont              Canaccord Genuity Limited  Cavendish Capital Markets Limited  Peterhouse Capital    SEC Newgate

 Limited              Cornish Limited                                                                     Limited
 The Company          Nomad                 Joint Broker               Joint Broker                       Joint Broker          Public Relations
 Jim Mellon           Roland Cornish        Andrew Potts               Giles Balleny                      Lucy Williams         Bob Huxford

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

                                                                       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 Statement

Beaumont Cornish Limited ("Beaumont Cornish"), is the Company's Nominated
Adviser and is authorised and regulated in the United Kingdom by the Financial
Conduct Authority. 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 the
announcement or any matter referred to in it.

 

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