Clean Food Group Update

Agronomics (LSE: ANIC), a leading company in the field of clean food, reports that its portfolio company, Clean Food Group Limited ("CFG"), a pioneering UK food tech business in the manufacture of sustainable oils and fats through fermentation, has announced that it has acquired the assets of Algal Omega 3 Ltd ("AO3").

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

With this acquisition, CFG is uniquely positioned to produce microbial oils at commercial scale, significantly reducing the capex required to supply sustainable oils and fats at competitive price points to agricultural equivalents across food, cosmetics and pet food markets. CFG announced earlier this month that it had received regulatory approval for its CLEAN Oil™ 25 product to be used as a cosmetic ingredient in the United Kingdom, Europe, and the United States.

Commenting on the announcement, Jim Mellon, Executive Chair of Agronomics, said: "We are on the brink of a technological revolution in food, one which can shorten supply chains and bolster food security, while meeting consumer demand for more sustainable and affordable options. In the near future, brands and manufacturers will no longer need to rely on large global supply chains for in-demand ingredients such as oils and fats, and will instead be able to source them directly from facilities such as this one in Liverpool. We are proud to support Clean Food Group as it scales and demonstrates how biotechnology can drive economic growth across Britain."

To date, Agronomics has invested a total of £1.6 million in CFG which, subject to audit, is currently carried at £6.9 million. This position represents c.4.8% of Agronomics' last stated Net Asset Value as of 30 June 2025.

The full announcement is set out below without any material changes:

Clean Food Group

('CFG' or the 'Group')

Transformational acquisition of one million litre fermentation facility

Fast-tracked commercialisation process and

CFG now uniquely positioned to address US$20 billion market

Clean Food Group, a leading UK food tech business pioneering the manufacture of sustainable oils and fats through fermentation, today announced that it has acquired the assets of Algal Omega 3 Ltd (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 Liverpool, already recognised as a centre of biotech excellence, includes extensive R&D facilities and significant opportunity for future expansion.

CFG has already validated commercial-scale production at the facility, manufacturing two tons of oil in a recent fermentation run. This milestone materially de-risks the acquisition, demonstrating the robustness of CFG's proprietary technology platform, and proving its ability to scale in existing manufacturing facilities without costly new-build infrastructure.

With this acquisition, CFG is uniquely positioned to produce microbial oils at commercial scale, significantly reducing the capex required to supply sustainable oils and fats at competitive price points to agricultural equivalents across food, cosmetics and pet food markets. CFG announced last week that it had received regulatory approval for its CLEAN Oil™ 25 product to be used as a cosmetic ingredient in the United Kingdom, Europe, and the United States.

Food manufacturing veteran Bill Thurston, former Managing Director of Dawn Foods, CSM Bakery and CFG NED, has been appointed Managing Director of the Liverpool facility. Bill has extensive oils and fats experience, having led the acquisition of Unilever's edible oils and fats business as CEO of CSM, and served as MD of Arkady CraigMillar. Bill will lead a senior manufacturing team on-site to oversee operations and integration with immediate effect.

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 Liverpool 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.

"This is not just the opening of a fermentation plant, it is the dawn of a new era in UK biotechnology, one that places Liverpool at the beating heart of the new Bio-Industrial Revolution."

Bill Thurston, Managing Director, added: "I am very pleased to be joining the executive management team of Clean Food Group at such a transformational time for the business. With my 30 years of experience in commercial and food manufacturing, I look forward to rapidly establishing this site as a global leader in sustainable alternatives to tropical oils."

Regional support and sectoral impact

Knowsley Council welcomed CFG's investment, commenting: "Clean Food Group's decision to establish their new biotech manufacturing facility here is testament to the strength of our local skills base and the supportive business environment we have built. This acquisition will not only create high-value jobs but also positions our area at the forefront of biotech innovation in the UK."

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