Agronomics Ltd (LON: ANIC) share price barely moved despite the company leading a US$4 million seed funding round for California Cultured Inc.
The company, which focuses on cellular agriculture, invested $2.2 million in California Cultured via a SAFER (Simple Agreement for Future Equity), with the amount set to convert into equity after completing a future funding round.
California Cultured is expected to complete an equity financing round of at least $4 million in future, after which Agronomics investment will convert to 18.33% equity ownership on a fully diluted basis.
If California Cultured cannot conduct a successful equity raise within the set period, the amount would automatically convert into preferred shares for Agronomics.
California Cultured is a food-tech company based in Davis, California, U.S., utilising cell culture technology to create premium cocoa products.
The company is keen to use cell culture to produce cocoa products to reduce the world’s heavy reliance on West Africa. There are concerns about deforestation in the two leading cocoa exporting countries Ghana and Côte d'Ivoire.
Jim Mellon, Non-executive Director of Agronomics, commented: “Agronomics are pleased to join California Cultured on their path to commercialise synthetic cocoa products without impeding on the natural environment. Their technology should support stabilising the production of cocoa in the future and has the potential to enable future chocolate demand to be met.”
Alan Perlstein, CEO and co-founder of California Cultured, added: “Agronomics' network of resources within biotech along with our mutual interest of radically transforming food and agriculture made them an easy choice as an investor and strategic partner. With Agronomics and our other investors behind us, we are well on our way to changing the way we eat chocolate.”
*This is not investment advice.
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