Agronomics puts another $1m into lab leather firm VitroLabs
By Josh White
Date: Thursday 13 Feb 2020
(Sharecast News) - Agronomics announced a further subscription of $1m (?0.77m) in the form of a 'simple agreement for future equity' (SAFE) in VitroLabs on Thursday.
The AIM-traded firm said it would be paid using cash from its own resources.
It said the subscription would increase its existing potential equity position of 3.79% to 6.15%, subject to converting at the valuation cap of $25m at the time of VitroLabs' Series A funding round.
The company completed its first subscription of $1.5m into Vitolabs - the lab-grown leather company based in San Jose, California - on 17 October.
It said the subscription was being made on the same terms as the original investment.
"We continue to be impressed by the strong developments VitroLabs is making as the only company in the world to be using this technology to create real leather, without the requirements of raising animals and the issues surrounding animal welfare, sustainability and efficiency," said Agronomics chairman Richard Reed.
"We are excited for the next 12 months where we expect to see VitroLabs launch their first leather goods to the market."
Ingvar Helgason, founder and chief executive officer of VitroLabs, added that his company was "excited" to continue working with the Agronomics team, whose partnership he described as "invaluable" as it continued developing its technology and platform.
"There is a huge need for a source of real, sustainable leather and we're glad to have Agronomics' continued support as we solve this huge problem."
At 1056 GMT, shares in Agronomics were down 0.49% at 7.59p.
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