Agronomics investee BlueNalu completes series B round

1st Nov 2023 12:19

(Sharecast News) - Cellular agriculture investor Agronomics announced a significant development in its partnership with BlueNalu on Wednesday.

The AIM-traded firm said following BlueNalu's successful completion of a $35.5m series B financing round, NEOM Investment Fund had emerged as the lead investor, contributing a substantial $20m to the funding round.

It said the investment by NEOM marked the beginning of a strategic partnership between NEOM and BlueNalu, with a shared focus on advancing the commercialisation, marketing, and distribution of BlueNalu's cell-cultured seafood products.

Both parties were committed to addressing food security challenges and enhancing access to nutritious food options in Saudi Arabia and globally.

Agronomics said it had been actively involved in supporting BlueNalu's growth, having invested a total of $8m across BlueNalu's seed and series A financings, along with a pre-series B convertible promissory note (CPN).

After completing the series B financing round, the note was converted into series B preferred shares.

As a result, Agronomics now held an equity stake in BlueNalu amounting to 5.12% on a fully diluted basis.

The company expected the position to be carried forward at a book value of £13.3m, delivering an impressive internal rate of return of 26.85% and a multiple on invested capital of 2x, subject to audit.

Additionally, Agronomics said its holding in BlueNalu represented about 8% of the last published net asset value of the company as of 30 June, including estimated post-balance sheet date adjustments.

"This collaboration with NEOM is a monumental step towards creating a more secure and accessible supply of seafood in the kingdom," said BlueNalu founder, president and chief executive officer Lou Cooperhouse.

"By combining our global expertise in cell-cultured seafood and the tremendous number of strategic partnerships we've developed to date at BlueNalu, together with NEOM's extraordinary vision and resources, we can accelerate the development of innovative, renewable food solutions via cell-cultured seafood."

At 1224 GMT, shares in Agronomics were up 0.11% at 9.11p.

Reporting by Josh White for Sharecast.com.