14 March 2025

Agronomics Limited

("Agronomics" or the "Company")

Unaudited Interim Results for the six-month period ending 31 December 2024

Agronomics Limited (AIM:ANIC), a leading listed company in the field of clean food, is pleased to announce its unaudited interim results for the six-month period ending 31 December 2024. A copy of these Interim Results is available on the Company's website www.agronomics.im.

Financial highlights

·      The Company's Net Asset Value per Share at 31 December 2024 was 14.93 pence (30 June 2024: 15.58 pence) - a decrease of 4.1%. The share price of 3.88 pence at the 31 December 2024 close represented a discount of 74% to the 31 December 2024 NAV per share.

·      Net investment loss (loan and cash interest income, net unrealised investment gains/losses, net unrealised foreign exchange gains/losses) totalled £5,872,621 (31 December 2023: net investment income of £393,646). during the six-month period.

·      Operating expenses for the period were £682,580 (31 December 2023: £831,570).

·      A net loss of £6,555,201 (31 December 2023: loss of £437,924) was recognised during the period.

·      The carrying amount of invested assets at the half year was £140,591,025 (30 June 2024: £145,143,166), and cash and cash equivalents and cash deposits stood at £10,190,488 (30 June 2024: £12,235,092).

·      Net assets decreased to £150,715,583 at 31 December 2024 (30 June 2024: £157,269,070). The decrease in NAV is due to:

o  Unrealised fair value loss on Solar Foods carrying amount, with the carrying amount adjusted to fair value based on latest traded share price - £5.2 million;

o  Unrealised fair value loss on Meatly carrying amount, following completion of its Series A raise - £0.5 million;

o  Unrealised foreign exchange losses on investments held in USD, EUR and AUD - £0.8 million;

o  Net operating costs for the period of £0.7 million;

o  Net loss offset by net interest income earned on loan investments and cash deposits - £0.7 million.

Operational Highlights

·      Collectively, the portfolio has raised close to US$400 million since August 2023. The Agronomics portfolio has continued to show significant technological and commercial progress, with many of our more mature assets achieving some of the largest financing rounds in the sector.

·      Onego Bio Ltd secured €14 million in new funding from the European Innovation Council Accelerator Program and an additional Series A investor.

·      Galy Co closed an oversubscribed US$33 million Series B financing led by Breakthrough Energy Ventures LLC, with additional participation from new investors H&M Group Ventures and Industria de Diseño Textil, S.A. (through Mundi Ventures).

·      Formo secured US$61 million in its Series B funding round, with participation from existing investors. Formo also welcomed new investors Sazaby League, Seven Ventures, Woodline Partners, The Nature Conservancy as well as the REWE Group, Europe's second-largest retailer.

·      Meatable secured €7.6 million in funding under the Innovation Credit programme from the Netherlands Enterprise Agency.

·      All G announced it received regulatory approval for the sale of recombinant bovine lactoferrin in China. This approval is significant for All G, as it will allow the company to bring in initial revenue streams in advance of its Series B fund raise. All G intends to release its first lactoferrin product in 2025 and plans to receive approval for its products in the US, Australia, New Zealand, and Japan.

Post-Period Highlights

·      Liberation Labs Closed a US$50.5 million fundraise. Liberation Labs' purpose-built biomanufacturing platform continues to make significant progress with its build programme and expects to have the facility complete by the end of this calendar year.

·      Formo has secured a €35 million loan from the European Investment Bank ("EIB"). This follows the US$61 million in Series B funding that Formo secured in September 2024 - the third-largest raise by an alternative protein startup last year - bringing Formo's total financing to over €135 million to date. The additional funds will be used to scale up the manufacturing of its Koji protein cheeses and develop new products through its micro-fermentation platform, in addition to securing regulatory clearance for its precision-fermented casein in the US and the EU.

·      Meatly became the first company in the world to supply cultivated meat for pet food, as well as the first company to sell cultivated meat in Europe. The "Chick Bites" products are now on sale at Pets at Home.

·      Solar Foods Oyj has been granted €10 million in funding by Business Finland. Part of the €600m Important Projects of Common European Interest (IPCEI) run by the European Commission, the new grant follows on from a €33.6million grant first secured in 2022 to help with the production of Solar Foods Factory 01 which launched in April 2024 and is already producing 160 tonnes of Solein® per year.

James Mellon, Chair of Agronomics, commented:

"During the period, the Agronomics portfolio has continued to show significant technological and commercial progress, with many of our more mature assets achieving some of the largest financing rounds in the sector. Collectively, the portfolio has raised close to US$400 million over the last 18 months.  The progress we have achieved during a challenging period for much of the cultivated proteins industry pays testament to the quality of our portfolio and our ability to identify the future category leaders within the industry.

Looking forward, Agronomics' investment strategy will focus on helping its portfolio companies maximise the increasing number of opportunities available to them. 2025 is expected to be a transformative year for the portfolio, with a number of companies expected to receive regulatory approvals or reach commercialisation. Additionally, the build programme for Liberation Labs' facilities is expected to complete before the end of this calendar year, which will bring much needed infrastructure capacity to the cultivated food industry."

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Chair's statement

I am pleased to present the Unaudited Interim Results for Agronomics Limited (the "Company" or "Agronomics") for the six-month period ending 31 December 2024.

Portfolio Progress

During the period, the Agronomics portfolio has continued to show significant technological and commercial progress, with many of our more mature investments also achieving some of the largest financing rounds in the sector.

This progress has continued into the first quarter of the year. In January, our portfolio company Formo Bio GmbH announced a €35 million loan awarded from the European Investment Bank - a significant sum which reflects its recognition of Formo's commercial roadmap and progress to date.

Also in January, Liberation Labs Holdings Inc announced the closure of a US$ 50.5 million fundraise round, which welcomed new substantial investors. Combined with the amounts raised to date, this will enable Liberation Labs to complete the construction of its first biomanufacturing plant. This will help serve the demand for diversified and secure food supply chains from governments and large corporations alike.

Meanwhile, in February, our portfolio company Good Dog Food Limited trading as Meatly became the first company in the world to supply cultivated meat-based pet food for sale in store, as well as the first approved company to sell cultivated meat in Europe. Meatly's limited product launch was sold in partnership with Pets at Home, the leading pet care company, which has 453 stores across the UK.

The above are just some examples of the positive commercial progress being made by our portfolio companies with many of the more established constituents preparing for revenue generation this year. We look forward to reporting further progress in the year ahead as certain of our portfolio companies are targeting to bring products to market.

At 31 December 2024, the weighting of the investment portfolio was as follows:

Investment Strategy

Our portfolio performance has continued to progress positively thanks to a diversified investment strategy across numerous technological verticals within the field of clean food. The majority of our investments (55% of NAV) are centred around companies using precision fermentation technology, a relatively near-term opportunity in addressing the challenges associated with our food system.

Precision fermentation is already used in the mass production of foodstuffs. For example, 97% of rennet, an enzyme used in cheese production, is produced this way. Such products, therefore, can seamlessly slot into existing supply chains, offering functionally identical replacements and price-stable supplies of animal proteins and oils. For example, our portfolio companies: Formo, Onego and Clean Food Group respectively, produce dairy, egg and palm oil using biomanufacturing technologies.

This infrastructure will enable the scale-up and commercialisation of bio-manufactured proteins and is the nearest-term opportunity in terms of material revenue generation. In the last few years, demand for these types of facility from food manufacturers and governments across the world has increased, as they identify biomanufacturing as a strategic priority for ensuring food security and price stability.

Facilities such as the one being built by Liberation Labs could produce a variety of end products from food ingredients and biomaterials, further derisking its model. Liberation Labs currently has non-binding Letters of Intent ("LOI's") from companies wishing to utilise its facility once built, that collectively represent over 200% of the available capacity and is now working towards converting these LOIs into Offtake Agreements.

I want to give a special thanks to the work of Dr Philip Boigner as interim Chief Executive Officer of Shellbay Investments Limited, the adviser to the Company providing portfolio management and investment services. Within the last six months, Philip has been integral in supporting our existing portfolio companies to secure funding rounds, including the closure of Liberation Labs' US$ 50.5 million fundraise which has been critical in enabling the completion of construction of the company's first plant, expected towards the end of the year.

As we informed the market in our last update, the period did see the expected write-downs of some portfolio holdings due to the difficult macroeconomic headwinds and challenging fundraising environment experienced over the last few years. This is the natural case within any diversified investment company, and we are greatly encouraged by the progress and growing potential of our remaining portfolio companies, which continue to go from strength to strength.

A Year of Expected Growth

Many of our portfolio companies are leading the way in the commercialisation of food products that are addressing critical issues including price volatility, food security and human health, as well as ethical and environmental sustainability. These disruptive technologies provide the potential to address inefficiencies in the global food system and thus become part of the solution to the increasing demand for protein without applying more pressure on our natural resources and the environment.

Cellular agriculture is expected to become an important part of the long-term growth of several key global industries. Recent global crises, including the COVID-19 pandemic, the war in Ukraine, and climate-related disasters, have highlighted the fragility of our existing food systems. Ukraine, for example, exports over 50% of the world's seed oils and between 20-30% of the world's corn, barley and wheat. With these exports effectively on hold following Russia's invasion in February 2022, there has been significant disruption to global food supplies and costs. In the last two years alone, the US FAO Food Price Index for staples like vegetable oils and cereals increased by 182% and 68%, respectively.

Additionally, similar price spikes continue to be experienced in other global industries such as the cocoa market. Cocoa prices have hit record highs over two consecutive months from December 2024, and January 2025, when it reached US$ 10.75kg. The surge is the largest seen in over six years, according to commodity analysts, primarily due to worsening weather conditions in West Africa - a major growing region and the main supplier to the European Union. The World Bank estimates production of cocoa declined by 14% in the 2023-2024 season. Our portfolio companies, such as California Cultured which produces cocoa and coffee without the crops, are perfectly placed, therefore, to provide sustainable, consistent alternatives without the price volatility of the farmed crop.

As the population and its demand for protein increases globally, our food systems must adapt to increase food production without the associated damage to the environment and human health. By decoupling production from industrial agricultural practices, clean food offers a sustainable solution to meeting demand, while diversifying current supply chains and thereby mitigating exposure to exogenous risks from geopolitical and climate-related events.

Financial Review

The Company recorded a net loss for the period of £6,555,201 (31 December 2023: £437,924). During the six months period, net investment losses (loan and cash interest income, net unrealised investment gains/losses, net unrealised foreign exchange gains/losses) totalled £5,872,621 (31 December 2023: net investment income of £393,646). No performance fees were payable or accrued for the current period. The basic and diluted loss per share was 0.649 pence (31 December 2023: loss per share of 0.044 pence).

The net loss recognised during the period includes:

·      Unrealised fair value loss on Solar Foods carrying amount, with the carrying amount adjusted to fair value based on latest traded share price - £5.2 million;

·      Unrealised fair value loss on Meatly carrying amount, following completion of its Series A raise - £0.5 million;

·      Unrealised foreign exchange losses on investments held in USD, EUR and AUD - £0.8 million;

·      Net operating costs for the period of £0.7 million;

·      Net loss offset by net interest income earned on loan investments and cash deposits - £0.7 million.

The carrying amount of invested assets is £140,591,025 (30 June 2024: £145,143,166), and cash and cash equivalents and bank deposits stood £10,190,488 (30 June 2024: £12,235,092). Our net assets decreased to £150,715,583 at 31 December 2024 (30 June 2024: £157,269,070). As a result, the net asset value per share at 31 December 2024 is 14.93 pence, which is a decrease of 4.1% from 30 June 2024 (15.58 pence).

Investment Strategy and Outlook

Looking forward, Agronomics' investment strategy will focus on continuing to assist our portfolio companies with expanding and supporting revenue generation opportunities, as more of them receive regulatory approval for the commercial sale of their products in their respective target markets and bring new products to market. We are seeing clear interest by the food industry in providing clean, locally produced and affordable food. We are also continuously evaluating liquidity opportunities for our portfolio companies and are seeing increased interest in our technologies as egg shortages in the US and increased demand for weight loss management highlight the revolutionary potential of providing clean foods by use of bio manufacturing.

With having achieved regulatory approval of novel clean foods in four countries, a strong demand from the market and technology breakthroughs that put most of our product at price parity to natural grown proteins, we now need to address the current bottle neck of clean food production. Agronomics is tackling this through the progress and development of Liberation Labs, we will continue to help expand manufacturing capabilities and off-take agreements to develop bio-manufacturing capabilities that can help support the continued growth of the cultivated food industry.

Jim Mellon

Chair

13 March 2025

Condensed statement of comprehensive income

For the period ended 31 December 2024

The Directors consider that the Company's activities are continuing.

The notes on pages 8 to 10 form part of these interim financial statements.

Condensed statement of financial position

As at 31 December 2024

The notes on pages 8 to 10 form part of these interim financial statements.

These interim financial statements were approved by the Board of Directors on 13 March 2024 and were signed on their behalf by:

Denham Eke

Director