Pioneering solutions to reduce climate change - one cow at a time!
- Mootral Ruminant reduces cattles' methane emissions by up to 38%
- Product co-financed by WORLD'S FIRST carbon credits of their kind
- Unique farmer benefits: more yield, healthy animals, less flies
- Discussions, pilots or trials with leading players in key markets
Learn more about convertible campaigns.
Mootral is a British-Swiss AgriTech company that develops innovative solutions to reduce greenhouse gas emissions from the agricultural sector.
Originally founded in Switzerland in 2018 as a spin-out of a British Biotech company, Mootral's first technology is a patented natural feed supplement that significantly reduces methane emissions from ruminants by up to 38%. Cow burps are the single biggest source of methane apart from the oil & gas sector. Methane traps 84x more heat than CO2, so reducing methane fast is the single biggest opportunity to slow global warming.
Mootral can further help to boost yields, ensure animal health and keep flies at bay. All valuable benefits for farmers! And our innovative business model includes the generation of carbon credits to co-finance the product costs.
Today, farmers are increasingly facing economic hardships and regulatory challenges. In order to meet consumer needs and support farmers and the future of our planet alike, new thinking is needed. Mootral is the result of that thinking, delivering benefits to everyone involved.
Substantial accomplishments to date
OUR CLIENTS CREATE CLIMATE-SMART PRODUCE TO CONSUMERS
We have partnered with our UK flagship farm, Brades Farm to provide them with Mootral for their cattle. Brades Farm now sells climate-smart milk to UK consumers. It is used in many of the UK's top coffee shops or via selected online stores to enjoy at home.
Additionally, we work closely with our flagship farm in the Netherlands which is also a showcase farm for McDonald's and Friesland Campina - two massive players in the beef & dairy industry.
We're now looking to enlist our first flagship farm in the US - our first in beef - enabling US consumers to enjoy climate-smart steak & more.
We have developed the WORLD'S FIRST carbon credits of their kind! They are selling for a high price premium on the voluntary carbon markets; >70€ per credit. These credits help (co)finance the product cost and are expected to eventually finance the entire cost which will further accelerate adoption.
Mootral has been able to secure substantial press coverage to date, with almost 400m reach in our latest campaign in spring 2021 alone: CNN (www.bit.ly/CNN-Mootral), Sky News (www.bit.ly/Sky-Mootral) & many more!
AWARDS, PROGRAMMES AND INVESTMENTS
- Third Derivate, an acclaimed accelerator programme, selected us as one of the most promising startups worldwide in climate tech
- FOOD TECH 500: #60 (2020), #78 (2019)
- Supported by the Swiss Climate Foundation
- Highly motivated investors, such as angels, family offices & climate funds, like Chris Sacca and his fund Lowercarbon Capital
More and more companies from the beef & dairy industry and retailers aim to reduce their carbon footprint.
We offer a solution to tackle one of the biggest emission sources in their supply chain: Cattle.
While the farmer is the one buying and feeding the product, (s)he will be incentivised by the beef & dairy industry, e.g. in form of higher prices.
The beef & dairy industry will kickstart the cycle through those incentives as they have the most to gain: Meet emission goals, increase market share, differentiate, sell premium climate-smart produce and create highly relevant content for PR & marketing.
Farm data allows us to generate CowCredits. They will be sold to either the beef & dairy industry or to retailers: to retire them and account for the carbon reduction, or to other carbon offset buyers at a premium price to partly and eventually fully offset the price of Mootral Ruminant.
Use of proceeds
Ramping up deployment with the aim of reaching 10% of today's almost 1 billion industrialised cattle by 2030. Commercial pilots and other validation studies in different territories.
Key hires to strengthen the team.
Further development of new solutions, the first of which will launch soon.
Overall, the investment will enable us to continue building momentum and open new opportunities as the world is waking up to the reality that we need to act now!
This investment round is being raised by way of a “SAFE” convertible instrument, which is attached in the Documents section of this Campaign.
Whilst similar in intent and mechanics to the standard Seedrs Advanced Subscription Agreement, this instrument differs in a number of ways, so investors should read the full instrument along with the key terms set out below:
• VALUATION CAP: £18,886,500
• DISCOUNT: 20%
• There is no longstop date applicable to this SAFE. Investors will remain as SAFE holders until a conversion event, being an ‘Equity Financing’, a ‘Liquidity Event’ or a ‘Dissolution Event’. It's the company's intention to seek an Equity Financing in late 2021.
• EQUITY FINANCING: The instrument will automatically convert into equity on an Equity Financing at the lower of: (i) the price paid in the Equity Financing, less the Discount; and
(ii) the share price determined by the Valuation Cap.
• ‘Equity Financing’ is defined as a bona fide transaction or series of transactions with the principal purpose of raising capital in exchange for the issue of Preference shares. Investors should note that there is no minimum size that the Equity Financing needs to meet in order to trigger conversion.
• LIQUIDITY EVENT: On a ‘Liquidity Event’ (a change of control transaction or IPO), the investor can either receive its investment back or convert into shares in the Company at the Valuation Cap price. If the investor elects to receive the cash investment back, and the company does not have available cash to pay all such investors who so elect, available cash will be distributed pro rata and any remaining SAFE Interest will convert to shares at the Valuation Cap price.
• DISSOLUTION EVENT: On a ‘Dissolution Event’ (company ceasing operations or a dissolution or winding up of the company), the SAFE investments become repayable (subject always to available proceeds).
Mootral has already raised £574,331 on terms consistent with this SAFE and the Seedrs investment is an extension of that funding round. It was therefore not possible to adjust terms to match the standard Seedrs convertible terms. Investors should review the SAFE instrument in full and are encouraged to ask any queries they may have about the mechanics and seek their own advice on the terms.
The SAFE comes with “Most Favoured Nation” (MFN) rights, which means that in case the company issues convertible instruments subsequent to the Seedrs raise at more favourable terms than the Seedrs SAFE, then the Seedrs SAFE will automatically enjoy these more favourable terms.
The company has the following outstanding loans and Convertible Loan Notes:
1. A loan facility of CHF 894,247 (GBP 700,500) with CHF 300,000 currently drawn down. This loan is guaranteed by the Swiss government and is at 0% interest. Repayments are to start from the end of September 2021, with repayment of CHF 24,841 (~GBP 20,000) per quarter over the next 10 years.
2. A long term loan of EUR 1.5m, with an interest rate of 1% above EURIBOR. Repayments will start in December 2026, at which time EUR 300,000 will be repaid annually over the following 5 years.
3. A Convertible Loan Note of USD 100,000 from US based Accelerator Third Derivative, with the following terms:
a. 8% interest p.a.
b. 20% discount
c. Share class: common stock
d. Conversion triggers:
- Next equity financing round: CLN to convert at the lower of: (i) the share price of the next equity financing round, or (ii) the share price at the next equity financing round with a 20% discount.
- Non-qualified equity financing round: if the company exits or liquidates with gross proceeds of less than USD 1m, investors can choose to convert to shares, as outlined in (i).
- On a company exit: the company will pay the investor 2x the outstanding principal balance, plus all accrued and unpaid interest.
e. If not converted, the CLN is repayable from December 1st, 2022 at the option of the lender.
4. A Convertible Loan Note of EUR 2.5m to Bionexus LLC, with the following terms:
a. Interest rate of 5% p.a.
b. Conversion triggers:
- Liquidity event (equity finance round of over EUR 10m, a change in control, or an IPO): the CLN will convert to the highest class of shares at a share price at the lower of: (i) 20% discount on the pre-money valuation of the equity raise, or, (ii) at the current valuation cap of GBP 18,886,500.
- Voluntary conversion: the investor has the right to convert the CLN to the highest class of shares at any time. This will convert the CLN at a valuation cap of EUR 47m.
- Repayment by the Company: the company has the right to repay the CLN to the investor at any time, plus double the amount of interest accrued at the time of repayment. If the Company elects to repay the investor, the investor has the right to choose to be issued shares at a valuation cap of EUR 47m, rather than cash repayment.
Please note, this CLN was initially entered into with a German Family Office, but was subsequently acquired by Bionexus LLC, which is controlled by a connected party to the Founders.
None of the funds raised will be used to repay these loans.
Outstanding SAFE agreements
Since November 2019, investment in the company has been through SAFE Notes that are on the same terms as this campaign. To date, this totals £4,072,079, excluding any amount shown in the progress bar of this campaign. These SAFE notes will convert at the same time as investment in this round.
Mootral is co-raising with Seedrs US Partner, Republic, for a joint equity crowdfund. Investment on Republic is being raised via a Private Placement Memorandum (PPM) on the same terms offered to Seedrs investors. The exchange rate for these investments has been set at £1/$1.36.
The investment round on Republic will be open until mid-October, and so the company will continue to raise funds as part of this round after the Seedrs campaign closes.
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