RCS - Frontier IP Group - UK Gov Future Fund invests £360k in Nandi Proteins

Frontier IPAnnouncement

16/09/2020 07:00

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RNS Number : 0928Z  Frontier IP Group plc  16 September 2020

Reach

AIM: FIPP

16 September 2020

 

Frontier IP Group plc

("Frontier IP" or the "Group")

 

 

Portfolio news - UK Government Future Fund invests £360,000 in Nandi Proteins
as part of £720,000 fund raising

 

Frontier IP, a specialist in commercialising intellectual property, today
notes the following announcement from portfolio company Nandi Proteins Limited
("Nandi" or the "Company") that it has raised £720,000 via a convertible
loan, including a £360,000 investment from the UK Government's Future Fund.

 

The investment from the Future Fund, which was established to support
innovative businesses through the COVID-19 outbreak, has been matched by
£320,000 from the Group and £40,000  invested by  Shackleton Finance
Limited, which specialises in secondary venture and development capital
investments. Frontier IP holds a 20.1 per cent equity stake in the Company.
Shackleton is also an existing shareholder.

 

Nandi is collaborating with a number of industry partners to commercialise its
novel process control technology to create ingredients based on animal and
vegetable proteins able to replace chemical additives and fat in processed
foods. The funding will support the Company in meeting technical and
commercial milestones relating to a number of collaborative projects with
major industry partners.

 

Frontier IP chief executive officer Neil Crabb said: "The investment from the
Future Fund is an invaluable contribution to supporting Nandi Proteins through
the next phase of its development. There is strong interest across the food
industry to reduce the levels of additives, fats and meat on both health and
environmental grounds. Nandi, with its proven expertise particularly with
vegetable proteins, is well placed to benefit from these trends."

 

Nandi Proteins statement begins:

 

UK Government Future Fund invests £360,000 in Nandi Proteins as part of
£720,000 fund raising

16 September 2020 Nandi Proteins Limited ("Nandi" or the "Company") today
announces that it has successfully raised £720,000 via a convertible loan
including £360,000 investment from the UK Government's Future Fund,
established to support innovative businesses through the COVID-19 outbreak.

The Future Fund's investment has been matched by Frontier IP Group, a
specialist in commercialising intellectual property, and Shackleton Finance
Limited, a technology-focused venture capital manager. They have invested
£320,000 and £40,000 respectively.

The convertible loan will enable Nandi Proteins to meet technical and
commercial milestones for its novel process control technology. This is now at
an advanced stage of commercialisation through collaborative partnerships with
a number of major organisations.

 

Nandi's technology has a wide range of potential applications. It is based on
the knowledge that the functional properties of proteins change as they
denature when heat is applied in a very precise way over time. As a result,
the technology is able to create new protein-based ingredients to replace
chemical additives and fats in processed foods, such as meats, cakes and a
host of other products.

Among other projects, Nandi is leading a consortium developing gluten
replacements for use in bread. Other members of the consortium include global
ingredients business AB Mauri, part of FTSE 100 group AB Foods, and a major UK
agronomy firm Agrii, a subsidiary of agri-services group Origin Enterprises.
The project is backed by a grant from Coeliac UK and Innovate UK.

The Company is a spin out from Heriot-Watt University, Edinburgh. More
information on the principles underpinning Nandi's technology is below.

Nandi Proteins chairman John Price said : "I have been very impressed with the
progress at Nandi Proteins since becoming chairman late last year, reflected
in the range and strength of the industry collaborations it has been able to
forge. We are confident that the Company will see the significant momentum
generated to date accelerate as the results of our industry collaborations
start to come through."

Nandi Proteins Acting Chief Executive Officer and Frontier IP Chief
Commercialisation Officer Matthew White said: "Nandi Proteins is addressing
many of the food industry's major concerns including the dangers of obesity, a
problem thrown into greater focus by the impact of COVID-19. We are very much
looking forward to continuing our work with both existing and new industry
partners as they seek to tackle these issues."

 

 

Nandi: the technology

Nandi's patented technology is based on the knowledge that the functional
properties of proteins change when they unfold (denature). Controlled
denaturation can be used to deliberately change and control the protein
functionality as an ingredient. The Company is focused on two protein types:

 

·    globular proteins, where the molecules are folded into a spherical
shape, found in vegetables and dairy; and

·    spiral proteins, where long chains of molecules form spirals or
helices. They are found in meat.

In both cases, chemical bonds along the length of, and between different
portions of, the protein molecule keep the proteins in their shapes.

 

Applying heat breaks the weak bonds allowing the proteins to unfold. The
structure of the protein that was previously 'inside' the folded protein is
now exposed. This allows it to interact with its surroundings -- for example
by binding onto water molecules --   enhancing functionality such as
solubility and emulsifying ability.

 

The unfolded structure also allows for new chemical bonds to form between one
protein to another. The result is that individual protein molecules can become
joined together to create a network which will change functional properties
such as thickening and gelation abilities.

 

These denaturation processes are already widely used in food ingredient
processing and cooking.  For example, an egg white consists of globular
proteins suspended in water. When you fry the egg, the proteins unfold and
create a mesh, which traps the water molecules. The egg white solidifies. The
challenge is in controlling the process precisely. Cook the egg for too long,
too many protein bonds form, the net's mesh becomes too tight, and the white
becomes rubbery.

 

By controlling the heat applied and monitoring the unfolding process extremely
precisely, Nandi can precisely create protein functionality that allows it to
replace the functionality of fat and additive molecules such as emulsifiers.

 

Nandi is capable of producing modified proteins from both globular proteins
(present in a wide range of naturally-occurring foodstuffs, including whey,
potato, soy and peas, as well as eggs) and spiral proteins present in meat
(Nandi is specifically exploring the modification of collagen proteins).

 

Nandi achieves control of the unfolding process by using chemistry and
light-based systems to measure in real time a range of key variables as heat
is applied to proteins in solution. This allows the Company to maximise their
functional properties, such as emulsification, solubility, acid stability,
foaming, water binding and gelation.

 

The company's technology includes proprietary sensor systems which can be used
across existing manufacturing processes to control the variables and create
functional proteins.

 

Nandi Proteins statement ends

 

 

ENQUIRIES

 

 Frontier IP Group plc                                                  T: 020 7332 2338
 Neil Crabb, Chief Executive                                            neil@frontierip.co.uk

 Andrew Johnson, Communications & Investor Relations                    M: 07464 546 025

 Company website: www.frontierip.co.uk (http://www.frontierip.co.uk/)
 Allenby Capital Limited (Nominated Adviser)                            T: 0203 328 5656
 Nick Athanas / James Hornigold

ABout frontier IP

The Group's convertible loan to Nandi Proteins was made by Frontier IP
Management Limited, a wholly-owned subsidiary and an Appointed Representative
of Privium Fund Management (UK) Limited ("Privium") which is authorised and
regulated by the Financial Conduct Authority ("FCA") in the United Kingdom.

Frontier IP unites science and commerce by identifying strong intellectual
property and accelerating its development through a range of commercialisation
services. A critical part of the Group's work is involving relevant industry
partners at an early stage of development to ensure technology meets real
world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence
income by taking an active involvement in spin-out companies, including
support for fund raising and collaboration with relevant industry partners at
an early stage of development.

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