Burcon Provides Update on JV, Merit Functional Foods
Vancouver, British Columbia--(Newsfile Corp. - September 19, 2022) - Burcon NutraScience Corporation (TSX: BU) ("Burcon" or the "Company"), a global technology leader in the development of plant-based proteins for foods and beverages, is pleased to provide an update on the production progress and funding of its joint venture, Merit Functional Foods Corporation ("Merit").
Burcon announces that it has advanced $947,867 to Merit, which represents Burcon's proportionate share of an aggregate $3 million financing (the "Merit Loan") provided by all shareholders of Merit in proportion to their equity interest in Merit. The financing addresses anticipated liquidity requirements of Merit as it continues to ramp up production and sales at its state-of-the-art pea and canola protein production facility. The Merit Loan has a term of 15 years, will initially be non-interest-bearing and have terms that are similar to previously advanced shareholder loans. The Merit Loan is subordinated to any indebtedness owed by Merit to each of its financial lenders, whether secured or unsecured.
Merit has made marked improvements in production throughput and yield of its unique pea and canola protein ingredients. Production issues arising from Merit undergoing fine-tuning and optimization last quarter have largely been resolved. In addition, Merit has successfully implemented its new Peazazz C™ process. Merit is on the path to reaching higher production and sales levels in the current and future quarters, with the goal of reaching continuous and consistent production.
"The commitment of all Merit shareholders is reflected in the financing announced today," said Peter H. Kappel, Burcon's interim CEO and Chairman of the board. Mr. Kappel went on to say, "We are pleased to see so many things going in the right direction at Merit including production improvements, new sales orders for the original product SKUs and in particular, we are excited about Merit's latest Peazazz C product and believe it can displace many other pea proteins on the market today."
About Burcon NutraScience Corporation
Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. With over two decades of experience formulating high-purity proteins that have superior functionality, taste and nutrition, Burcon has amassed an extensive patent portfolio covering its novel plant-based proteins derived from pea, canola, soy, hemp, sunflower seed, among other plant sources. In 2019, Merit Functional Foods Corporation ("Merit Foods") was established between Burcon and three veteran food industry executives. Merit Foods has since built and commissioned a state-of-the-art protein production facility in Manitoba, Canada that is producing, under license from Burcon, best-in-class pea and canola proteins for the food and beverage industries. For more information, visit www.burcon.ca.
Forward-Looking Information Cautionary Statement
The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified by words such as "anticipate," "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "may," "should," "could," "will" and similar references to future periods. All statements included in this release, other than statements of historical fact, are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the implementation of our business model and growth strategies; trends and competition in our industry our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; and other risks and factors detailed herein and from time to time in the filings made by Burcon with securities regulators and stock exchanges, including in the section entitled "Risk Factors" in Burcon's annual information form for the year ended March 31, 2022 and its other public filings with Canadian securities regulators on SEDAR at www.sedar.com. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Any forward-looking statement or information speaks only as of the date on which it was made, and, except as may be required by applicable securities laws, Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although Burcon believes the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, investors should not rely on such statements.
Tel (646) 755-7412
Steve Campbell, APR
Campbell & Company Public Relations
Tel (604) 888-5267
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137701