Agronomics co-leads SuperMeat’s Series A Financing

LONDON, UK: Agronomics Limited has co-led the Series A Financing for portfolio company SuperMeat (The Essence of Meat Ltd) with a US$ 10 million investment, subscribing for 188,158 Series A Preferred Shares, a notice said.

SuperMeat is a leading cultivated chicken meat company based in Israel. The funding round was co-led alongside New Agrarian Company Limited.

Following the close of the funding round, Agronomics will have the right to appoint a board member to SuperMeat and will have a 7.77% equity interest. The investment will be made using cash from the Company’s own resources.

Agronomics first invested in SuperMeat in December 2020, with a US$ 2 million investment in the form of a SAFE (Simple Agreement for Future Equity).

This SAFE will convert to 119,551 Series A Preferred Shares, representing a Multiple on Investable Capital (“MOIC”) of 2.97. In February 2022, Agronomics purchased an additional 50,774 Preferred Seed Shares in SuperMeat via a secondary transaction from an existing shareholder for total transaction cost of US$ 500,124 which will, subject to audit, represent a MOIC of 5.04.

Agronomics will now carry the aggregate position in its accounts at a book value of US$ 19.35 million, subject to audit, including an unrealised gain on cost of US$ 6.95 million, representing an internal rate of return of 207.

The SuperMeat position in the Agronomics portfolio will represent approximately 10% of Net Asset Value.

SuperMeat is a leading cultivated meat player, with their bioprocess capable of producing cell densities of 150 million cells/ml, as well as displaying strong product demonstration.

In a taste test that occurred in January 2022, SuperMeat’s unseasoned chicken was indistinguishable to conventional chicken as judged by a panel of culinary experts. SuperMeat currently allows individuals to visit their restaurant experience ‘The Chicken’ to try their cultivated chicken products. At present, SuperMeat is working to obtain regulatory approval in the US and Singapore for its chicken products to be made available for inclusion in consumer products.

The funding raised by SuperMeat in this Series A financing will be used to establish SuperMeat’s first facility, as the company seeks to commercialise its chicken product in the next 24 months.

Since this Acquisition is considered a Substantial Transaction under AIM Rule 12, this announcement requires certain disclosures under Schedule Four. SuperMeat is an early-stage company with no revenues with operating costs of approximately US$ 260k per month, and total assets as at 31 December 2020 of approximately US$ 3.3 million with no material liabilities.

Jim Mellon, co-founder and executive director of Agronomics commented: “Agronomics is pleased to provide further support to SuperMeat, one of the most established companies in this rapidly advancing field. The technical progress they have made since our first investment has been exceptional with some technical production metrics at the upper end of what the Agronomics team has observed in the entire field. This recently culminated in a landmark blind tasting event which demonstrated SuperMeat’s chicken to be indiscernible from conventional chicken by culinary experts.”

Ido Savir, co-founder and CEO of SuperMeat, added: “We are excited to take further steps towards commercialization with the leadership and support of Agronomics. Agronomics, which currently holds the largest portfolio of cellular agriculture companies, provides a strong and professional support as well as a global network of partners and connections invaluable for our path to market. We are honoured to receive their continued support.

New Agrarian, the new unquoted entity formed to accept funds from private equity investors seeking exposure to the field of cellular agriculture also participated in the financing for SuperMeat on the same terms as Agronomics with a US $5 million investment and, following the investment, holds an aggregate position, on a fully diluted basis, of 3.14%”.