Agronomics to raise GBP50 million to invest in "cultivated meat"

(Alliance News) - Agronomics Ltd on Tuesday launched a conditional subscription and placing to ...

Alliance News 11 May, 2021 | 11:32AM
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(Alliance News) - Agronomics Ltd on Tuesday launched a conditional subscription and placing to raise a minimum of GBP50 million before expenses.

The AIM stock fell by 32% on Tuesday morning after the announcement to 25.05 pence a share, giving it a market capitalisation of GBP125.4 million.

The company, which invests in alternatives to the traditional production of meat, said it intends to issue a minimum of 227.3 million shares at a price of 22p each, with warrants, exercisable at 28.5p per share with a two year expiry, attached to the fundraising shares on a one-for-one basis.

The issue price represents a 25% discount to the 20-day volume weighted average price of 29.3p per Agronomics share.

An accelerated bookbuild was launched immediately and is expected to close later on Tuesday.

The net proceeds of the fundraising will be used to finance further investment into current portfolio companies and projects, investment in new opportunities within the "cultivated meat" sector and development and commercialisation of intellectual property where Agronomics holds an interest.

"Agronomics has expanded rapidly over the past two years, and this financing will further accelerate its growth," said Non-Executive Chair Richard Reed.

"We anticipate it will provide the full funding to support our existing portfolio companies through their next financing rounds, while also giving us sufficient capital to pursue acquisitions of new investments in this exciting field as it enters into what we expect will be a multi-decade growth phase," added Reed.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Agronomics Ltd 23.00 GBX -3.16 -

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