UK invests in Frontier IP's Nandi Proteins business
The UK government has invested £360,000 in Frontier IP's portfolio company Nandi Proteins to support its efforts to replace chemical additives and fat in processed foods.
Frontiier said it would contribute £320,000 with £40,000 from Shackleton Finance to match the investment by the government's Future Fund. The funding is via a convertible loan.
Nandi will use the money to meet milestones for a number of projects with industry partners, Frontier said. The projects include developing gluten replacements for use in bread with Associated British Foods and Origin Enterprises' Agrii.
The Future Fund was set up to support innovative businesses during the Covid-19 crisis. Nandi said it was working on many of the food industry's major concerns, including the dangers of obesity, which makes people more susceptible to Covid-19.
Frontier's chief executive Neil Crabb said: "The investment from the Future Fund is an invaluable contribution to supporting Nandi Proteins through the next phase of its development. There is strong interest across the food industry to reduce the levels of additives, fats and meat on both health and environmental grounds."
Frontier shares rose 3.5% to 66.25p at 09:11 BST. The company owns 20.1% of Nandi, a spinout from Heriot-Watt university, and Shackleton is an existing shareholder.