Agronomics Share Discussion Threads

[hpcg] 14/5/2021 12:21

I added some, but not a whole load as the placing price was about my basis - should probably have added more given I had just recently raised cash from elsewhere and at as I write its well in the money already. I'm somewhat more bothered by the Shellbay rent extraction but even here I have to put on my 'this is a VC fund' hat. I won't go over the investment thesis, you all know it. Interesting conversation about the religious aspect though. Personally I think just another nail on the coffin of religion.

I'll focus on the mechanics, and what we should learn from Bay Area VC. For the target companies the modus operandi is up-rounds. This is always difficult to grasp when we are all so used to lifestyle AIM stock fund raises. Everyone wins with an up-round, even later stage investors paying more, because the name has momentum and the paper itself becomes more valuable. This means, for example, employee pay in the form of long dated options or options post listing. Mark-to-market post a funding round allows investors to re-rate their valuations for which they can raise capital. Going forward I'd like to think ANIC can raise closer to market than to NAV, but that may be difficult as I'm sure the share price will trade at a premium for many years to come. We should expect several-many more raises in the future but successively less and less dilutive.

[mwoo] 14/5/2021 12:11

Hi Billy Bunter

I also had same problem with Hargreaves saying we do not have a relationship with the Book Runner.....very disappointed as Hargreaves is not a Micky Mouse Broker or so I thought.
I am obviously wrong

[meneither2] 14/5/2021 11:50

Thanks. Yes I've already put my orders in

[jmid1000] 14/5/2021 11:17

I've been told as I have accepted and put forward what I want, that I'm guaranteed to get it even if they pull it due to low uptake. So if you are intending to accept I would do it quickly, because those that except, the trade will go through and be honoured. This is from interactive investor

[meneither2] 14/5/2021 10:35

Annoying but luck of the draw I guess. ii are offering it, will be interesting to see what allocation occurs.

[billybunter1970] 14/5/2021 09:36

I have been offered 'Broker' shares at 22p from the holding I have in my SIPP held with AJ Bell. I have a larger holding in an ISA with Hargreaves & Lansdown, however I have not been sent the same 22p offer. After calling H&L they said they would not offer to me as H&L do not have a relationship with the broker offering the 'Broker Deal'.

How can that be fair????

[energeticbacker] 14/5/2021 09:35

The latest transaction from investing company Agronomics, covered in the free update on Investor's Champion's website, shines a spotlight on the ridiculous valuations placed on early stage companies, generous accounting treatment and even more generous service agreements.

It also illustrates the good and bad of public markets – a willingness to support early stage businesses with admirable objectives, but a financial structure which grants excessive rewards to the financial engineers.

[888icb] 14/5/2021 09:34

Don’t forget that the placing doesn’t happen until it is approved at an EGM on 28th May.One would imagine it will be approved but fairly recently the shareholders did reject one of the company’s proposals. The share price will probably stick around these levels until the EGM.

[ryesloan] 14/5/2021 09:21

Think everyone took a sharp intake of breath as the drop. But in reality it was just running hot and the progress has been outstanding so far.With huge sums now raised I reckon you have made a smart move doubling down as we are now set to be substantially invested in the worlds next mega trend!!

[ashleyjv] 14/5/2021 08:52

I was a bit put out seeing my profit vanish the other day but since then I've had a think and decided to double down on my investment, that investment turned blue this morning

[robow] 14/5/2021 08:49

from Citywire thi morning

Agronomics boosts Marlborough’s Micro Cap fund

Agronomics (ANIC), which specialises in investing in plant-based and lab-grown meat, has boosted the Marlborough UK Micro Cap Growth fund’s recent returns as consumers become more discerning about their food’s impact on the environment.

The group was the biggest contributor for the £1.5bn fund in April, with the shares jumping 65% as two of its investee companies, Meatable and LiveKindly, announced ‘supportive funding rounds’, said manager Guy Feld.

‘With consumer preferences changing and food technology rapidly advancing, Agronomics is well-placed to capitalise on the plant-based revolution,’ said the Citywire AA-rated manager.

Shares in Agronomics closed up 3.5%, or 0.9p, at 24.9p on Thursday after heavier losses earlier in the week.

[axonic] 13/5/2021 07:14

Another RNS out today:

Agronomics, the leading listed alternative proteins company with a focus on cellular agriculture and cultivated meat, is pleased to announce a purchase of 117 shares, worth €195,632, in existing portfolio company Meatable B.V ("Meatable"). Agronomics now holds 4,859 shares in Meatable, representing an equity ownership of 5.84% on a fully diluted basis. Subject to audit, the additional acquisition will allow Agronomics to carry this position in its accounts at a book value of €8.15 million, representing an unrealised gain on cost of €2.95 million, following Meatable's completion of its US$ 47 million Series A financing announced in March 2021.

[axonic] 13/5/2021 07:11

The appetite for animal free and animal minimal products is growing at a phenomenal rate. The current advances and products are amazing and the list will get bigger. Milk without cows and honey without bees would have seemed like science fiction a few years ago.

I was enjoying a 57% increase on my investment until the recent drop but I don't view this as a problem, more an opportunity to get more exposure and in a couple of years time I won't be saying "wish I had held on to ANIC" more like "I think I'll take the Aston Martin today love..." Enjoy the ride guys 😀

[donald pond] 12/5/2021 20:54

Btw, if you look at the investments it's not just cultured meat, there's dairy, cotton and pet food there as well. Cotton could be a big winner imoI managed to get quite a few in the placing. First time ever, but I used my bank, who have an investment portfolio as security for a mortgage (don't ask) and they came up trumps.

[philipc240] 12/5/2021 15:59

Excellent summary.

[scrutable] 12/5/2021 12:45

I believe in the following:

1) The industrial culture of plant and animal cells is potentially as nutritious and/or fit for purpose, as that from industrial agriculture, and with adjustment of pre- and post-growth recipes, and techniques (like 3D printing) can approximate ever closer, with time and experiment, to the flavour and or purpose of farm grown versions

2) The cost of production of every product, process, or invention in history, has been susceptible to continuous cost reduction, even if only by ever declining amounts. Therefore I expect the shop price of cultured meats and dairy products to fall within three years and continue thereafter increasingly to undercut their current naturally grown equivalents..

3) Producing meats by culturing cells, as is now common in bio-technology is surely a more successful process potentially than the plethora of plant based pathways to produce current vegan/vegetarian meat substitutes being marketed - although relative costs must play an important role - and the outcome in conquest of market shares will take time to resolve.

4) Unless humanity can find an acceptably ethical way to control and limit population growth, (and the use of antibiotics in meat and dairy farming) current 'natural' or acceptable industrial methods will become unsustainable without plagues and famines.
Agricultural space and available water will be inadequate and in ever more situations exhausted.

5) I expect cultured meat and dairy products to displace a large share of the market for the current plant based equivalents on grounds of taste and structure,

6) Agronomics, effectively an Investment Trust, heavily diversified and therefore, de-risked is the only quoted investment possibility in the world which covers all cultured agricultural products - not only meats and dairy, but also leather, cotton and silk.

NO WONDER IT WAS OVERSUBSCRIBED IN 24 HOURS - which points to a probably fast share price recovery. The original funds have multiplied FOR AIM investors. It is therefore likely to have a similar effect on the £62.5m funds now added.

[nivison] 12/5/2021 12:14

my reading of this is that the warrants issued at 28.5p must be exercised within 2 years. In other words those people holding those warrants are confidence that the share price will be above 28.5p at some point in the next two years otherwise the warrants will be worthless. Would that be right?

Its not exactly a massive return but its some sort of reassurance on the rollercoaster that is AIM.

[hsfinch] 12/5/2021 11:23

In reality, isn't this is an investment trust focussing on new food n agriculture? Do what is asset value after the cash raise? And why is it so much lower than the SP?

[az4hr] 12/5/2021 09:05

its at the placing price now so existing shareholders can buy and avoid dilution in the open market instead of paying 100s quid to get into the bookbulld and broker option

[ashleyjv] 12/5/2021 08:44

I bought these as a long term investment so I should be seeing this as a building block, a step in the ladder to riches. Its however, frustrating to see the share price drop lol

[billytkid2] 12/5/2021 08:39

Not ideal for existing shareholdings given major dilution. However, new acquisitions and continuing to fund existing investments will ultimately drive the share price.

[ashleyjv] 12/5/2021 08:36

They got £62.5 million instead of the £50

[az4hr] 12/5/2021 08:34

isnt not subject to shareholder approvel on the 28 may so it still may not get through