US biomanufacturing company Liberation Labs has raised $3.5 million via a Secured Promissory Note (“Note”), including a $2.0 million subscription from the VC firm Agronomics Limited (LSE: ANIC). With this note, Agronomics’ total investment in the precision fermentation company amounts to $19.6 million, holding 37.5% on a fully diluted basis.
Other participants in the fundraising, each contributing $0.5 million, include New Agrarian Company Limited (an affiliate of Agronomics), Galloway Limited, and Jim Mellon in his personal capacity.
The Note, a form of convertible debt, will finance the construction of Liberation Labs’ first facility in Richmond, Indiana, before an intended $37.5 million Series A (“Qualified Financing”) round. The plant is scheduled to be operational in Q1 2025, offering a fermentation capacity of 600,000 L. For more information on the Note, please consult Agronomics’ press release.
Jim Mellon, Executive Chairman of Agronomics, commented: “In 2020, McKinsey estimated that approximately 60% of all physical inputs of the global economy could be produced via biomanufacturing.”
Support from the DoD to expand capacity
Liberation Labs began constructing its purpose-built biomanufacturing platform, Bio3, in June last year to establish itself as a global fabrication partner. Strategically located in Richmond, it will access sugar, utility rates, labor availability and cost, regulatory environment, and government incentives.
Liberation Labs has also received a $1.39 million award from the US Department of Defense (DoD) under its Distributed Bioindustrial Manufacturing Program. The award is intended for a feasibility study (engineering and market analysis) for a flexible-use, commercial-scale (4 million L) plant adjacent to its launch facility. The successful completion of the initial project phase may lead to a further $100 million for building new or expanding current bioindustrial manufacturing facilities.
Companies The Better Meat Co., Air Protein, C16 Biosciences, Onego Bio, and Savor Foods have also received awards from DoD’s Distributed Bioindustrial Manufacturing Program to advance biotechnology for sustainable food products.
The future is biomanufacturing
Liberation Labs is an early-stage company with no current revenues. According to the announcement, its monthly operating costs are $0.4 million, and the company had total liabilities of $43.8 million as of June 30, 2024.
Previous to this note, the company raised $33.5 million in equity-linked instruments and secured commitments for an additional $55 million in funding, including $30 million in equipment financing and a $25 million loan from Ameris Bank.
Despite all these financing challenges, the company’s future is promising. According to Mellon, the firm has signed letters of intent with potential customers, representing over 200% of its launch facility’s available capacity in the initial years for food, fuel, materials, and pharmaceutical alternatives.
Mellon adds, “The DoD’s recent commitment to invest across fabrication, firepower, fitness, food, and fuel demonstrates the potential of a biomanufacturing ecosystem in which the benefits of more secure and reliable supply chains are delivered across industries. In line with this, Liberation Labs has made significant steps towards securing binding offtake agreements for its Launch Facility.”
In this Future of Foods Interviews episode, Mark Warner, CEO of Liberation Labs, discusses the challenges of building biomanufacturing capacity to produce alternative proteins.