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The lack of VC interest and capital has been a major challenge for precision fermentation companies over the last two years, but there is also a silver lining. Clean Food Group paid cash for this plant and bought the assets from a company (Algal Omega 3 Ltd) which had gone into administration. I doubt GFC has a lot of cash on its balance sheet so they would only have done this deal if it was both cheap and was extremely attractive in terms of ROI. Clean Food Group stated in the press release that they will now advance its next funding round to H1 26. This company will look radically different 6 to 12 months in the future. It's no wonder Jim Mellon mentioned them as one of the 3 portfolio companies he's most excited by.

Reaching commercial scale production is by far the biggest challenge facing our porfolio companies, with the exception of Liberation Bio, which provides it. Clean Food Group has just solved this problem by making this acquisition. It's a game changer for the company and possibly for the valuation of ANIC:

"Alex Neves, CEO of CFG, said: “With this acquisition, we have fast-tracked our route to market, leapfrogging the traditional, capital-intensive path from pilot to demo to new build commercial plant, which can take years and cost upwards of US$100 million. With commercial-scale validation already established at our new Knowsley facility, Clean Food Group is ready to capitalise on the US$20 billion market opportunity ahead, and to advance its planned Series A funding round, now expected for H1 2026. "

"Clean Food Group, a leading UK food tech business pioneering the manufacture of sustainable oils and fats through fermentation, today announces that it has acquired the assets of Algal Omega 3 Ltd (in administration) (‘AO3’).

This transformational acquisition provides CFG with immediate access to one million litres of fermentation capacity, positioning the Group as the world’s largest manufacturer of yeast fermentation-derived sustainable oils and fats. The 12-acre site in Knowsley, Liverpool city region, already recognised as a centre of biotech excellence, includes extensive R&D facilities and significant opportunity for future expansion. "

https://cleanfood.group/news/transformational-acquisition-of-one-million-litre-fermentation-facility?ss_source=sscampaigns&ss_campaign_id=68c195ac29ffe7262f437a64&ss_email_id=68d4de9bc7ed5d581de3e2d8&ss_campaign_name=CFG+News+-+Transformational+Acquisition+of+1+Million+Litre+Facility&ss_campaign_sent_date=2025-09-25T06%3A18%3A14Z

ETFs that mirror the AIM 100 Index, or offer diversified exposure to UK small cap companies will obviously need to hold ANIC.

I'm also puzzled by the big sales. You either sell because you need the cash, or because the underlying business fundamentals are deteriorating. The latter clearly isn't the case, and why would anyone invest in such a speculative asset if they needed the cash short-term? I doubt ANIC is going to appeal to many fund managers, at least in the immediate future. This is a like a VC fund where the underlying investments are all pre-revenue. In other words it's difficult to value using traditional methods like p/e or price-to-sales ratios, so way too risky for most funds. For me that's actually a good thing, as it allows individual investors to buy in before any major upside that will come when institutional money eventually arrives.

« Solar Foods has filed a patent application for an innovation for Solein®-powered mayonnaise, demonstrating the unmatched value Solein can bring to the food industry by replacing egg yolk in a globally widely used everyday staple. Due to its excellent emulsifying properties, Solein could significantly enhance mayonnaise production efficiency by replacing egg yolk powder and unlocking major cost savings: replacing the egg yolk powder in mayonnaise production with the same amount of Solein produces approximately three times more mayonnaise, giving the food industry a direct cost advantage. »

https://solarfoods.com/solar-foods-has-developed-solein-powered-mayonnaise-with-unmatched-value-for-the-food-industry/

Https://www.greenqueen.com.hk/onego-bio-fda-gras-egg-protein-fermentation-ovalbumin/

As far as I know they haven't built a manufacturing facility in Asia, so unless they've done it under the radar, or are outsourcing production, I think California is more likely, where they have a 38,000 square foot pilot facility. That said, they still haven't got GRAS approval yet in the US. They have plans to open a larger 140,000 square foot facility, but last I heard, need to raise more capital to do that. So I suspect that if Bluenalu does start generating revenue next year it will be fairly modest, though still an important first step. I'm surprised and a little disappointed he didn't mention Meatly.

Seems to me that there been good progress and momentum is building in a number of the portfolio companies and it's been frustrating to see that the stock price has largely ignored this. We still haven't seen anyone scale production and funding remains challenging. This is my biggest concern. However, Liberation Bio should have completed its Richmond facility by the end of Q1 26 at latest, and I'm optimistic they will have secured contracts for all their production capacity by then. That will happen independently of any challenges at the other companies and should be the key catalyst to get the stock price closer to the NAV.

This could be an important milestone for California Cultured and it doesn't surprise me that they kept it under wraps, even from their investors, until the patent was granted. Cocoa butter has an interesting physical property: its melting point, 34–38°C, is close to human body temperature, so it melts upon contact with our skin, which makes it an ideal for lotions, skin creams, balms and other skincare products. So in essence, this patent will open up a whole new industry, beyond just chocolate, for California Cultured.

Https://agfundernews.com/california-cultured-breaks-new-ground-with-patent-on-cocoa-butter-via-plant-cell-culture

"California-based startup California Cultured has filed a patent covering the production of cocoa butter in plant cell culture, a first for the industry.

As prices skyrocket and firms struggle with volatility in the cocoa market, food companies have been exploring a range of alternatives for cocoa powder, from plant cell culture to upcycled ag products. But replacing cocoa butter is more challenging, Steve Stearns, head of strategy and business development, told AgFunderNews.

“For years, companies have been trying to replace cocoa butter, and they have used things like hydrolyzed palm fats and shea butter, but they don’t have the same melting profile as cocoa butter and they can have a greasy feel.”

The same applies to firms attempting to precisely replicate the melting properties of cocoa butter with fats produced via microbial fermentation, he claimed. “There are a ton of microbes that can produce triglycerides, but they can’t produce them in the right ratios. There is also a standard of identity for chocolate [in many countries] that requires cocoa butter.”

Up until now, he said, “Every group working in cocoa cell culture has relied on callus cells [mature cells that have been ‘de-differentiated’ to behave more like stem cells]. The challenge with callus cells is fundamental: they can make excellent cocoa powder, but they simply don’t produce fat. Without fat, you can’t replicate the qualities and the melting properties that make real chocolate.”

"Why it matters

The recombinant ovalbumin IP dispute follows a series of high-profile IP battles in the alternative protein space, where uncertainty over IP made it more challenging for some high-profile startups to secure customers and investors.

The best-known cases are Impossible Foods’ spat with (the now-defunct) Motif Foodworks over the production of heme proteins in yeast and The Better Meat Co’s dispute with Meati Foods over mycoprotein production via biomass fermentation.

Biomilq cofounder Dr. Leila Strickland also found herself locked in a damaging IP dispute with her ex-husband that she claimed ultimately forced her to shut down her cellular ag company.

Onego Bio has not commented on VTT’s filing or the US litigation, but claimed in court filings in Wisconsin this week that The Every Co had demanded “unwarranted patent licensing fees” from Onego. It also alleged that Every engaged in tortious interference by telling third parties, including potential investors, that “Onego needs a patent license from Every or Onego would be infringing Every’s patents.”

https://agfundernews.com/egg-protein-ip-fight-escalates-as-vtt-challenges-every-co-patent-in-europe

Good points jjmac. I would still have prefered for this not to be happening. I don't think either company is swimming in cash, so I'd have liked to see all available capital be used for scaling production. The article presents the dispute mainly from the Onego point of view, so we aren't hearing both sides. If there is any truth to the following, however, it suggests to me Every is trying to extort Onego and simultaneously made a low-ball offer to merge the companies. That suggests to me that Every isn't in a strong position and isn't confident it will be able to go it alone. Perhaps I'm reading too much between the lines, but if my suspicions are founded, that isn't good news, at least for Every:

"In an explosive filing* in a district court in Wisconsin—where it is planning a commercial-scale facility—Onego Bio adds that, “Not only has Every attempted to extort unwarranted patent license fees from Onego, but Every has committed actions that rise to the level of fraud in obtaining the ’784 patent [US patent No. 12,096,784].”

According to Onego Bio, “Every’s demands for resolution have been objectively unreasonable and have included a proposed merger with Onego at a severe devaluation, making it clear that Every is really only interested in Onego’s commercially successful technology.”

Onego adds that it has “conveyed to Every that it is not interested in such a partnership and that the parties should instead focus on their respective businesses using their very different technologies.”

"Agronomics (LSE: ANIC), a leading company in the field of clean food, is pleased to announce that its portfolio company, Clean Food Group Limited ("CFG"), has received approval for its CLEAN Oil™ 25 product to be used as a cosmetic ingredient in the United Kingdom, Europe, and the United States. This approval marks a significant milestone in the commercialization of CFG's proprietary CLEAN OilCell™ technology platform, unlocking access to the high-value global personal care and cosmetics sector, which is projected by Modor Intelligence to grow to more than US$ 776.35 billion by 2030.

CLEAN Oil™ 25, developed in collaboration with THG LABS and Croda International plc, offers a sustainable alternative to conventional oil and fat ingredients. With this clearance, Clean Food Group and THG LABS will continue working together to scale the impact of CLEAN Oil™ 25 and help shape the future of sustainable beauty."

https://www.londonstockexchange.com/news-article/ANIC/clean-food-group-update/17228609

Not great to see two of our portfolio companies in an ugly patent dispute: https://agfundernews.com/objectively-unreasonable-onego-bio-sues-the-every-co-in-high-stakes-patent-fight

Another in a long list of vacuous articles pumping the stock. Perhaps they do a deep dive into the individual holding in the research that's behind their paywall, but I fail to see the value in repeating the same message over and over again: https://uk.finance.yahoo.com/news/could-penny-stock-millionaire-maker-070558735.html

Given his background, I think the probability is high that Philip Boigner was instrumental in bringing the NEOM Investment Fund onboard for the crucial $50.5M funding round that will allow Liberation Bio to complete its Richmond facility. With the exception of Solar Foods, none of the portfolio companies are public, so they have no obligation to release information that we as indirect shareholders would find interesting. That said, I share some of dominicus' frustration. You really have to dig to get almost any news on our companies. Agronomics could do a much better job aggregating new news and keeping us informed. There was a great initiative on the website where key company executives made presentations, after which we we could ask questions. This seems to have stopped when Anthoney Chow was fired.

Https://agfundernews.com/meatable-acquires-uncommon-bios-cultivated-meat-platform-as-firm-pivots-to-therapeutics

https://www.edie.net/cultivated-food-lab-grown-meat-bans-wont-slow-momentum/

Partially selling some positions and re-investing in the most promising companies would be an option, but I'm not that confident they will be able to find buyers for the stakes they want to sell. Funding conditions remain really challenging. They reported £3.6m when they released the NAV as of 30/06/25. They are doing a good job of managing opex and with cash burn being fairly minimal they aren't going to run out any time soon. It's more a frustration than a worry for me, that they won't participate in new financings with the share price this low:

" Cash balances reduced by £0.2 million relating to ongoing running costs, with cash balances at 30 June 2025 of £3.6 million. This was offset by interest income earned during the quarter, with £23k cash interest and £365k loan note interest income earned."

https://www.londonstockexchange.com/news-article/ANIC/net-asset-value-calculation-as-at-30-june-2025/17141881