GALY Raises US$ 33 Million in Series B Financing

4 September 2024

Agronomics Limited

("Agronomics" or the "Company")

GALY Raises US$ 33 Million in Series B Financing

Agronomics (LON:ANIC), a leading listed company in the field of cellular agriculture, is pleased to report that its portfolio company GALY CO. ("GALY") has announced that it has closed an oversubscribed US$ 33 million Series B financing led by Breakthrough Energy Ventures LLC, with additional participation from new investors H&M Group Ventures and Industria de Diseño Textil, S.A. (through Mundi Ventures).

Founded in 2019 with a mission to find ethical and sustainable agricultural solutions, GALY Cotton is the company's first product targeting conventional cotton practices. GALY Cotton is a new material that fully replicates traditional cotton in quality, retaining its exact attributes because it originates from an actual plant, all while offering ESG benefits, customisable quality and a clear roadmap to reach cost parity.

The funds from the Series B round will primarily fuel the expansion of GALY's research and development on its innovative cellular agriculture platform and its flagship product, GALY Cotton, which uses 99% less water and 97% less land than traditional cotton while emitting 77% less CO₂, as it advances towards pre-industrial quality and scale.

GALY explains that it has also secured millions of dollars in proof-of-concept agreements with top industry players and a 10-year, US$ 50 million offtake agreement with Suzuran Medical Inc, a Japanese medical supplies manufacturer, for the sourcing of GALY Cotton.

In aggregate, Agronomics has invested US$ 1.5 million in GALY across its Pre-Series A and Series A rounds. Subject to audit, Agronomics will, as a result of this Series B round, carry this position forward at a book value of £2.6 million representing a MOIC of 2.2x and an IRR of 28.0%. Agronomics now holds an equity stake of 3.3% in GALY on a fully diluted basis, accounting for approximately 1.6% of Agronomics' last stated Net Asset Value on 30 June 2024.

Luciano Bueno, GALY's CEO, said:

"We are thrilled to have investors who recognise the crucial role that our climate adaptation technology will play in our daily lives. Climate change exposes the fragility of agricultural supply chains, and the recent rise in cocoa prices is a stark reminder of the new normal we face. Unfortunately, it's not a matter of 'if,' but 'when.' Soon, the world will face increased volatility in conventional agriculture due to more frequent extreme weather conditions. When that time comes, GALY will be ready, better equipping our economy to withstand these shocks."

 Jim Mellon, Co-Founder and Executive Chair of Agronomics, said:

"The production of cotton accounts for the largest uses of water and pesticides of any agricultural product, and GALY, with its biomanufacturing cotton, is offering a sustainable solution which could reduce the environmental burden of cotton production across multiple industries such as medical supplies and textiles. This announcement is an exciting milestone for GALY and we are excited to see them enter a new stage as they scale up production and work towards commercialisation."

To read GALY's full press release please see the following link:

https://www.globenewswire.com/news-release/2024/09/03/2939864/0/en/GALY-Raises-33-Million-in-Oversubscribed-Series-B-Financing-to-Advance-its-Cellular-Agriculture-Platform.html

About GALY CO.

Launched in 2019, GALY is a climate tech company dedicated to developing novel cellular agriculture products. Starting with cotton-which accounts for 2.5% of the world's total arable land, consumes 25% of the world's agrochemicals, requires an estimated 10,000 litres of water per kilogram produced, and faces traceability issues due to unsafe labour conditions-the company has successfully developed a minimum-viable product and is working on both enhancing the product's quality parameters and scaling up production. Recognising the potential of its platform through its work with cotton, GALY has expanded its foundational technology to other crops in industries such as food and beverages, among many other possibilities.

About Agronomics

Agronomics is a leading London-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 materials with a focus on products historically derived from animals. These technologies are driving a major disruption in agriculture, offering solutions to improve sustainability, as well as addressing human health, animal welfare and environmental damage. This disruption will decouple supply chains from the environment and animals and improve food security for the world's expanding population. A full list of Agronomics' portfolio companies is available at https://agronomics.im/.

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Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.