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(Alliance News) - Agronomics Ltd on Wednesday reported a decline in half-year net asset value per share, and investment income plummeted.
The Isle of Man-based venture capital firm, which invests in the cellular agriculture field, said its net asset value at December 31 totalled 16.90 pence per share, down 0.2% from 16.94p at June 30.
Shares in Agronomics were down 0.8% at 9.62 pence on Wednesday at around midday in London.
Agronomics said investment income, including loan interest and net unrealised gains, amounted to GBP696,120 for the six months, down from GBP19.9 million a year prior.
Executive Chair Jim Mellon said the company spent the half year "focused on supporting its existing portfolio through follow-on investments", and that "broader financial conditions remain challenging".
Agronomics swung to a net loss of GBP437,924 compared to its GBP18.6 million profit the prior year.
The company had a cash balance of GBP5.0 million at December 31, down from GBP18.2 million at June 30.
Going forward, Mellon said, Agronomics "anticipates a number of positive developments within the portfolio during 2024".
"With the first regulatory approvals for the field now having been granted in major jurisdictions such as the US, we are confident that in 2024 we will witness additional regulatory approvals and commercial partnerships...it is [also] anticipated that several portfolio companies will achieve material funding rounds providing them with the capital they need to continue to improve their processes and push their production towards cost parity with conventional production methods," Mellon added.
Also on Wednesday, Agronomics announced that portfolio company California Cultured Inc reached a partnership deal with "Japan's largest chocolate manufacturer", Meiji Co Ltd.
The 10-year deal will arrange for the supply and integration of California Cultured's flavanol cocoa powder into various chocolate products for the Japanese and US markets. Agronomics said it "will mark the first time cell-cultured cocoa will enter any market worldwide".
"This partnership marks a significant milestone in the ongoing transition towards developing sustainable food production systems," Mellon commented. "It is a great example of how biomanufacturing provides a viable solution to environmental and ethical issues associated with industrial agricultural production while serving the needs of large multinational food companies."
By Emma Curzon, Alliance News reporter
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