LONDON, UK: Agronomics, the leading listed company focused on cellular agriculture, has acquired 1.069 million preferred stock in a secondary transaction in Geltor Inc., company focused on producing designer proteins for use in the cosmetic industry, from an existing shareholder, for total consideration of US$ 9.49 million. 

This represents an equity stake in Geltor, on a fully diluted basis, of 2.05% and equates to an estimated portfolio weighting based on the Company’s last reported Net Asset Value of 5.01%.

The consideration due to the vendor comprises US$ 6,785,375 in cash from the Company’s own resources and US$ 2,714,150 to be satisfied through the issuance of 8,676,951 new Ordinary Shares in Agronomics priced at 23 pence per share.

The Consideration Shares are subject to a lock in and orderly market agreement with a vesting schedule below:

–     1,084,619 shares released immediately
–     1,084,619 shares released after 18 months
–     6,507,713 shares released after 24 months
–     Shares subject to orderly market restrictions are such that the holder shall provide the Company with notice of its intention to sell a specific volume of shares, at a minimum price, and the Company and its brokers shall have a period of 10 trading days to find buyers for such shares on the stated terms

Geltor is a biodesign company focused on producing designer proteins for use in the cosmetic industry, as well as food and nutrition.

The company was co-founded in 2015 by Alexander Lorestani, CEO, and Nick Ouzounov to develop tailored bioactive ingredients to replace traditional animal-derived proteins.

Since this Acquisition is considered a Substantial Transaction under AIM Rule 12, this announcement requires certain disclosures under Schedule Four.

Geltor is an early-stage company generating small revenues with operating costs of approximately US $ 1,319,387 per month, and total assets as at 31 December 2020 of approximately US$ 86,740,174 with no material liabilities.

Jim Mellon, co-founder and executive director of Agronomics commented: “Agronomics is thrilled to be broadening its portfolio to include Geltor, recognised as a leading precision fermentation company and one of the first companies in the sector to utilise this technology for the development of agricultral products without the need for animals. We look forward to following Geltor’s progress in the years ahead, as they continue to build their portfolio of biodesigned proteins for use in the beauty and cosmetics, and now food and nutrition industries.”