Business
Additional Investment of US$1 Million in VitroLabs
Additional Investment of US$1 Million in VitroLabs.
About this update from Agronomics Limited
[{"type":"text","content":"\n \nRNS Number : 8144C Agronomics Limited 13 February 2020 \n\n13 February 2020\n \nAgronomics Limited\n \n(\"Agronomics\" or the \"Company\")\n \nAgronomics Announces Additional Investment of US$ 1 Million in \nExisting Portfolio Company VitroLabs, Inc\n \nThe Board of Agronomics is pleased to announce today it has completed a further subscription of US$ 1 million in the form of a SAFE (Simple Agreement For Future Equity) (the \"Subscription\"), in VitroLabs, Inc (\"VitroLabs\"). This will be paid using cash from the Company's own resources. The Subscription will increase Agronomics existing potential equity position of 3.79% to 6.15%, subject to converting at the valuation cap of US$ 25 million at the time of VitroLab's Series A funding round. \n \nThe Company completed its first subscription of US$ 1.5 million into Vitolabs, the lab-grown leather company based in San Jose, USA, on 17 October 2019. The Subscription is being made on the same terms as the original investment, details of which are contained in the announcement of 17 October 2019.\n \nRichard Reed, Chairman of Agronomics, provided comments on the investment: -\n \n\"We continue to be impressed by the strong developments VitroLabs is making as the only company in the world to be using this technology to create real leather, without the requirements of raising animals and the issues surrounding animal welfare, sustainability and efficiency. We are excited for the next 12 months where we expect to see VitroLabs launch their first leather goods to the market.\" \n \nIngvar Helgason, Founder and CEO of VitroLabs also added: -\n \n\"We are excited to continue working with the Agronomics team whose partnership has been invaluable as we continue developing our technology and platform. There is a huge need for a source of real, sustainable leather and we're glad to have Agronomics' continued support as we solve this huge problem.\"\n \n \nSince the Subscription is considered a Substantial Transaction under AIM Rule 12, this announcement requires certain disclosures under Schedule Four. VitroLabs is an early stage, pre-revenue company with costs of approximately US$ 290,000 per month and total assets as at 31 December 2019 of approximately US$ 1,330,000, including cash and near cash of US$ 1,000...