Nandi Proteins appoints David Flower as CEO

Reach - a non-regulatory announcement

AIM: FIPP

14 June 2021

Frontier IP Group Plc

("Frontier IP" or the "Group") 

Portfolio news - Nandi Proteins appoints David Flower, former Managing Director, Europe, for Singha beer maker Boon Rawd as Chief Executive Officer

Frontier IP, a specialist in commercialising intellectual property, today announces that portfolio company Nandi Proteins ("Nandi" or the "Company") has appointed David Flower as Chief Executive Officer. David is the former Managing Director, Europe, for Singha beer maker the Boon Rawd Brewery Company. He was previously Managing Director Home Baking for Kerry Foods.

David joins Nandi at an important stage. The Company is scaling up its first commercial products to create a wide range of customised ingredients based on vegetable and animal proteins. These functional proteins can be used to replace undesirable ingredients, such as fat, gluten and E-number additives in processed foods, or those that people do not want to consume -- for example, replacing animal proteins with vegetable proteins.

The Company has gained significant industrial traction and is collaborating with major companies on several applications, including:

·    vegetable proteins to replace egg whites and xanthan gum  n gluten-free products to improve their taste and texture.  Nandi is leading a project in collaboration with one of the world's biggest ingredient companies, AB Mauri, and Origin Enterprises, part of Agrii to develop this technology

·    vegetable proteins to replace egg whites in mycoprotein-based meat alternatives, turning vegetarian products into vegan products

·    vegetable proteins to replace chemical binders in plant-based alternative meats

·    proteins to replace chemical emulsifiers in baked products

·    animal proteins to replace fat in processed meats

The technology is a suite of novel processes and process control technology to control very precisely the way proteins denature, consisting of hardware to sit in food manufacturing lines and software.

David has also been a Managing Director at Noon Foods and Commercial Director for Dairy Crest.

He is a non-executive director at Jack & Bry, which is developing jackfruit-based meat-free pepperoni pizza toppings, burgers and sausages.

In September last year, Nandi announced it had successfully raised £720,000 in a convertible loan, including £360,000 investment from the UK government's Future Fund, matched by £320,000 from Frontier IP and £40,000 from Shackleton Finance Limited. A more detailed explanation of its technology is below.

David Flower, Chief Executive Officer of Nandi Proteins, said: "I am delighted to be taking this leadership role for Nandi Proteins at such crucial time in the Company's development. Against a backdrop of increasing consumer awareness of how important a healthy diet is and of the role of proteins within it, the Nandi offering is very relevant. Be it gluten replacements, fat substitutes, or others, Nandi's technology will become part of the functional protein landscape." 

Neil Crabb, Frontier IP Chief Executive Officer, said: "Nandi's exciting technology has the potential to help solve some of the pressing problems facing the food industry. We are delighted that David, with his long and broad experience in the food industry, has decided to join the Company to oversee its future success."

ENQUIRIES

ABOUT NANDI'S TECHNOLOGY

Nandi's patented technology is based on the knowledge that the functional properties of proteins change when they unfold (denature). Controlled denaturation can be used to deliberately change and control the protein functionality as an ingredient. The Company is focused on two protein types:

·       globular proteins, where the molecules are folded into a spherical shape, found in vegetables and dairy; and 

·       spiral proteins, where long chains of molecules form spirals or helices. They are found in meat.

In both cases, chemical bonds along the length of, and between different portions of, the protein molecule keep the proteins in their shapes. 

Applying heat breaks the weak bonds allowing the proteins to unfold. The structure of the protein that was previously 'inside' the folded protein is now exposed. This allows it to interact with its surroundings -- for example by binding onto water molecules --   enhancing functionality such as solubility and emulsifying ability.

The unfolded structure also allows for new chemical bonds to form between one protein to another. The result is that individual protein molecules can become joined together to create a network which will change functional properties such as thickening and gelation abilities.    

These denaturation processes are already widely used in food ingredient processing and cooking.  For example, an egg white consists of globular proteins suspended in water. When you fry the egg, the proteins unfold and create a mesh, which traps the water molecules. The egg white solidifies. The challenge is in controlling the process precisely. Cook the egg for too long, too many protein bonds form, the net's mesh becomes too tight, and the white becomes rubbery.

By controlling the heat applied and monitoring the unfolding process extremely precisely, Nandi can precisely create protein functionality that allows it to replace the functionality of fat and additive molecules such as emulsifiers.

Nandi is capable of producing modified proteins from both globular proteins (present in a wide range of naturally-occurring foodstuffs, including whey, potato, soy and peas, as well as eggs) and spiral proteins present in meat (Nandi is specifically exploring the modification of collagen proteins).

Nandi achieves control of the unfolding process by using chemistry and light-based systems to measure in real time a range of key variables as heat is applied to proteins in solution. This allows the Company to maximise their functional properties, such as emulsification, solubility, acid stability, foaming, water binding and gelation.

The company's technology includes proprietary sensor systems which can be used across existing manufacturing processes to control the variables and create functional proteins.

ABOUT FRONTIER IP

Frontier IP unites science and commerce by identifying strong intellectual property and accelerating its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology meets real world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies, including support for fund raising and collaboration with relevant industry partners at an early stage of development.

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