Onego Bio Raises EUR37 Million

Agronomics Limited

02 April 2024

 

2 April 2024

Agronomics Limited

("Agronomics" or the "Company")

Onego Bio Raises €37 Million in Additional Funding 

Agronomics (LSE: ANIC), a leading listed company focused on the field of cellular agriculture, is pleased to announce that portfolio company Onego Bio Ltd ("Onego Bio"), focused on commercialising egg proteins via precision fermentation, has successfully raised €27 million in its Series A financing, led by NordicNinja VC, a Japanese-Nordic VC backing companies in climate and deep tech. In addition, Onego Bio secured a further €9.5 million in non-dilutive funding from Business Finland, a government organisation offering grant funding for innovative Finnish companies that address significant global needs and challenges. Agronomics participated in the round with a €1.55 million investment (the "Subscription") alongside existing investors Maki VC and Holdix and new investors EIT Food and Tesi, the Finnish sovereign wealth fund. 

Subject to audit, Agronomics' position in Onego Bio, including the Subscription, will be carried at £11.1 million (€12.9 million), including an unrealised gain of £3.8 million. This represents a gross IRR of 27.57% and a MOIC of 1.53x. Agronomics now holds an equity stake of 16.36% in Onego Bio on a fully diluted basis, accounting for approximately 6.4% of Agronomics' last stated Net Asset Value at 31 December 2023, including post-balance sheet date adjustments.

Agronomics' first investment in Onego Bio was In February 2022, when it led the Seed round with a €6.9 million investment. Concurrent with the close of the Seed round, Onego Bio secured an exclusive license from VTT Technical Research Centre of Finland Ltd. ("VTT") to commercialise its proprietary strains of the highly productive protein expression system Trichoderma reesei ("Trichoderma") to produce egg proteins. Prior to securing the licence, more than a decade of research had been conducted at VTT under the guidance of Chris Landowski, now CTO of Onego Bio.  Chris recognised the advantages of Trichoderma over other protein expression systems, given its extensive use and high productivity in other fields such as enzyme production.

A LCA (Life-Cycle Analysis) conducted by VTT and published in Nature Foods in 2021, showed that the production of ovalbumin via precision fermentation using Trichoderma as a host organism instead of chickens could reduce environmental impacts across a range of different impact categories, such as global warming potential, land use, marine eutrophication, terrestrial acidification and stratospheric ozone depletion. Additionally, current supply chains, which at the industrial scale lead to poor animal welfare conditions, are often interrupted by outbreaks of avian flu causing shortages and price volatility. By decoupling egg protein production from intensive poultry farming, precision fermentation provides a more sustainable, ethical and secure supply of egg protein. Onego Bio is one of few companies in the field targeting the egg market which was valued at USD 136.2 bn in 2022 and is estimated to grow at a CAGR of 5.4%.

Onego Bio's Series A funding will be used to continue scaling and optimising its production processes and productivity, finance its work with its contract manufacturing partners and prepare for FDA filing for regulatory approval in the United States. Onego is on track to receive self-affirmed GRAS (Generally Recognized as Safe) status for Bioalbumen® this year, with a no-objections letter expected from the FDA in 2025.  As a US-Finnish company, Onego plans to first launch in North America, where the regulatory landscape allows a faster market entry, followed by expansion in Europe, South America and Asia.

Jim Mellon, Executive Chairman of Agronomics commented:

"Eggs are an essential part of food businesses, but with the egg market constantly fluctuating in supply and costs due to avian flu and increased demand for cage-free, manufacturers are challenged to find a viable replacement with a consistent, reliable, and safe supply of high-quality protein at an accessible price. A long-term sustainable solution for chicken eggs is needed. We have been highly impressed with Onego's capabilities and vision from the very beginning. By repurposing a well-established technology from the enzyme industry for food protein production, they are well-positioned to scale to the massive volumes needed to future-proof the supply of the world's most versatile and popular food protein."

New Agrarian Company Limited, an affiliate of Agronomics, invested EUR 0.5 million along with  Jim Mellon, who personally invested EUR 0.25 million on the same terms.

About Bioalbumen®

Bioalbumen® is a bioidentical protein to the major protein in chicken egg white, ovalbumin. Nutritionally complete, Onego's egg protein contains all essential amino acids, has the highest possible protein digestibility score PDCAAS of 1.0, and delivers a whopping >90 g protein per 100 g. With a clean neutral flavor and superior functional properties, Bioalbumen® is an ideal industrial ingredient for replacing eggs and enhancing the texture, taste, and performance of a wide range of applications across the food industry. Onego currently collaborates with over 25 well-known CPG companies, integrating Bioalbumen® into their innovation pipeline for a wide range of products, including baked goods, confectionery, snacks, sauces, pasta, meat alternatives, and more.

About Onego Bio:

Onego Bio is a US-Finnish food-biotech company revolutionizing the food system by harnessing the power of precision fermentation to manufacture real egg protein entirely animal-free. Their ingredient, Bioalbumen®, sets a new standard for sustainable protein with identical taste and nutrition, superior functional properties and over 90% smaller environmental footprint compared to eggs from chickens. Onego's highly productive and scalable technology caters to the needs of the food industry searching for stable, sustainable functional ingredients. As a game-changer in the field, the company was selected the Winner of Fast Company's 2023 World Changing Ideas awards and is a co-founder of two industry associations: Precision Fermentation Alliance and Food Fermentation Europe. Learn more at www.onego.bio.

About Agronomics

Agronomics is a leading listed company focussing on investment opportunities within the field of cellular agriculture. The Company has established a portfolio of over 20 companies in this rapidly advancing sector. It seeks to invest in companies owning technologies with defensible intellectual property that offer new ways of producing food and ingredients with a focus on products historically derived from animals. These technologies are driving a major disruption in agriculture, offering solutions to improve sustainability and address human health, food security, and animal welfare. A full list of Agronomics' portfolio companies is available at https://agronomics.im/.

Agronomics Limited	Beaumont Cornish Limited	Canaccord Genuity Limited	Cavendish Capital Markets Limited	Peterhouse Capital Limited	SEC Newgate
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Jim Mellon Denham Eke	Roland Cornish James Biddle	Andrew Potts Harry Pardoe Alex Aylen	Giles Balleny Michael Johnson Charlie Combe	Lucy Williams Charles Goodfellow	Bob Huxford  Anthony Hughes
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