Business
CFG completes £2.3 Million Pre-Series A Financing
CFG completes £2.3 Million Pre-Series A Financing.
About this update from Agronomics Limited
[{"type":"text","content":"\n\n14 August 2023\nAgronomics Limited\n(\"Agronomics\" or the \"Company\")\nClean Food Group Announces Successful £2.3 Million Pre-Series A Financing Round with Strategic Investors\nAgronomics (ANIC:LSE), the leading listed company focused on the field of cellular agriculture, is pleased to announce that the Company has invested £0.7 million in fermentation-derived palm oil company Clean Food Group Limited (\"CFG\"), as part of their £2.3 million Pre Series A funding round, subscribing for 4,249,700 ordinary shares (the \"Subscription\"). Notable co-investors include industrial food specialists Doehler Group and Alianza Team. The investment was made using cash from the Company's own resources.\nJim Mellon, Executive Director of Agronomics and Co-Chairman of CFG also participated in the funding round with a £50,000 investment on the same terms. AIM traded SEED Innovations Limited, of which Jim Mellon has a 6.95% holding, also invested in the round on identical terms.\nAgronomics previously invested £900,500 in CFG in June 2022. In total, Agronomics will now hold 30.31% of the equity capital on a fully diluted basis. Subject to audit, Agronomics will carry this position in its accounts at a book value of £6.97 million, including an unrealised gain on cost of £5.37 million, an IRR of 385% and a MOIC of 3.92x. The holding in CFG will represent approximately 4.33% of the last published Net Asset Value of the Company (30.06.23), including estimated post-balance sheet date adjustments.\n● CFG produces palm oil using a non-GMO microorganism which is already being used on an industrial scale in the wine industry meaning that the regulatory pathway in the UK and EU is anticipated to be less stringent.\n● Capital raised from this pre-series round will enable CFG to accelerate the scale-up of its technology platform, ahead of the planned completion of its Series A funding next year to further develop its technology for production at a commercial scale, with the funds supporting the construction of a new manufacturing facility in the UK.\nJim Mellon, Executive Director of Agronomics and Co-Chairman of CFG, commented:\n\"Agronomics' portfolio speaks to the breadth of disruption emerging from biomanufacturing on conventional agriculture and beyond. This fundraise marks an important milestone for Clean Food ...