French insect protein scaleup Agronutris has announced its holding company EAP Group, which focuses on research and development (R&D), had entered a ‘procédure de sauvegarde’ (safeguarding proceedings) — a voluntary procedure that occurs when a company is at risk of insolvency.
Agronutris, which launched in 2011, farms insects which it transforms into protein that can be used to make pet food. The company says it provides a more environmentally-friendly alternative to animal-based protein.
The move comes just a few months after high-profile French insect protein scaleup Ÿnsect also announced that it was entering safeguarding proceedings.
Agronutris is split between EAP Group, a 40-people strong group which carries out R&D in a pilot lab based near Toulouse, and a separate entity that includes the company’s 16,000 square metre industrial site in northern France. The latter site is not included in the safeguarding procedure, according to the company.
A safeguarding procedure typically starts with a period of observation during which the company’s activities will continue normally. This lasts for six months (which can be renewed), with the objective of establishing a restructuring plan.
Agronutris said in a statement that this will give EAP Group time to “stabilise its financial situation, negotiate its debt with its creditors, while ensuring its operational continuity.”
“EAP Group will implement a restructuring plan to optimise its costs, improve its profitability and reinforce its financial structure.”
Agronutris raised €100m in 2021 from investors including French public bank Bpifrance and sustainable investment manager Mirova.
“However access to funding has become harder due to an uncertain economic context and investments that have been curbed by the latest news in the industry, and the announcements made recently by other industrial actors,” the company said.
Ÿnsect entered safeguarding proceedings after having raised over $600m since launching in 2011. The company had been looking to secure fresh capital for several months to fund the launch of its first industrial plant Ÿnfarm, which cofounder Antoine Hubert told Sifted had been a major challenge.
Read the orginal article: https://sifted.eu/articles/agronutris-holding-company-safeguarding-news/
