ANIC Agronomics Limited

5th April 2024

 Agronomics Limited

("Agronomics" or the "Company")

Agronomics Invests US$ 10 million in Liberation Labs

Agronomics (LSE: ANIC), a leading listed company focused on the field of cellular agriculture, is pleased to announce that it has invested US$ 10 million in its portfolio company Liberation Labs Holding Inc. ("Liberation Labs") as part of a wider US$ 12.5 million financing round with participation from existing investor Siddhi Capital. The investment was made in the form of a Secured Convertible Promissory Note ("SCPN"), a form of convertible debt, for the continued construction of its facility in Richmond, Indiana in advance of Liberation Labs' Series A round (a "Qualified Financing"). The SCPN will convert into the same instrument and terms as the Qualified Financing which is anticipated to raise a minimum of US$ 37.5 million through a combination of debt and equity. The investment was made using cash from the Company's own resources.

Including this SCPN, Liberation Labs has now raised US$ 33.5 million in equity-linked instruments and has formal commitments for non-dilutive funding totalling a further US$ 55 million. This includes US$ 30 million in equipment financing and a US$ 25 million loan from Ameris Bank which is backed by the U.S. Department of Agriculture via the Business and Industry Guaranteed Loan Program.

Liberation Labs is seeking to become the industrial biotechnology industry's global fabrication partner through the design, build and operation of Bio³, its purpose-built biomanufacturing platform. This platform will address the critical bottleneck which fermentation companies face.  Liberation Labs broke ground in June 2023 on its first facility which when complete will have 600k litres of fermentation capacity. Today, the project is approximately halfway through its build programme and, subject to completion of the Qualified Financing, is expected to be commissioned in Q1 2025.  This site, located in Richmond, Indiana which has the potential to be expanded by an additional 4 million litres of capacity was selected considering several key metrics such as access to sugar inputs, utility rates, cost and availability of labour, regulatory environment, availability of government incentives.

Including the SCPN, Agronomics has invested US$ 17.6 million in Liberation Labs which, subject to audit, is currently carried at a book value of £25.7 million. This position represents approximately 14.8% of Agronomics' last stated Net Asset Value, including post-balance sheet date adjustments. Agronomics now holds 37.5% of Liberation Labs on a fully diluted basis.

Mark Warner, CEO and Co-Founder of Liberation Labs said:

"The new funding from Agronomics and Siddhi Capital comes as we continue to make significant progress in building out our operations team and advancing facility construction - including the installation of key equipment like fermenters and spray dryers. Each day we're closer to our goal of unlocking the potential of domestic manufacturing of novel proteins for both food and industrial use. We greatly appreciate the continued support of our major funding partners."

Jim Mellon, Executive Chairman of Agronomics added:

"Liberation Labs continues to deliver on the project milestones of its launch facility in Indiana.  We have huge confidence in the team's ability to execute and believe that Liberation Labs will become the first company in Agronomics' portfolio to be cash generative."

About Liberation Labs

Liberation Labs is commercializing precision fermentation with a global network of purpose-built manufacturing facilities that enable the next wave of biotechnology advancements to produce bio-based consumer products at scale. We combine modern technology with fit-for-purpose design to bring reliable and cost-effective solutions that meet customer demand across the world. More information is available at www.liberationlabs.com.

In the year to 31/12/23, Liberation Labs reported a loss of US$ 7.1 million and as at 31/12/23 had net assets of US$ 12.7 million.

About Agronomics

Agronomics is a leading listed company focussing on investment opportunities within the field of cellular agriculture. 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 ingredients 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, food security and animal welfare. A full list of Agronomics' portfolio companies is available at https://agronomics.im/.

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