Mr. Paul Lam reports
BURCON UPDATES ON DEVELOPMENTS
Burcon NutraScience Corp. has provided an update on its developments in light of the recent announcement of the letter from the Nasdaq Stock Market regarding minimum bid price deficiency, Burcon's recent share price weakness and the overall market volatility for the plant-based sector.
Merit Production and Sales
Merit Functional Foods Corporation ("Merit"), in which Burcon is a joint venture partner and licensor of its pea and canola technologies, continues to increase its production and sales at its state-of-the-art protein production facility. Merit has fulfilled new and repeat purchase orders from CPG companies looking to incorporate Merit's best-in-class pea and canola protein ingredients into food and beverage products. Consumer products using Merit's protein ingredients are currently available on store shelves in the US and Europe. As Merit goes through the sell-in process with many of the leading food and beverage customers, we expect to see more innovative and taste-forward consumer products being launched.
"Food ingredient sales tend to be recurring and long-lasting once incorporated into a product's formulation," said Peter H. Kappel, Burcon's interim CEO and Chairman of the board, adding that, "The sell-in process takes time to materialize but we expect that securing sales contracts with leading food and beverage customers will reap long term benefits for Merit."
Strategic Partnerships and Collaborations
Burcon continues to advance its discussions and negotiations with potential partners on additional plant-based protein opportunities. Due diligence and negotiations on potential strategic partnerships are progressing well with various parties moving forward with pace. We are very encouraged by the progress of our potential partnership discussions and continue to work towards reaching an agreement to bring our innovative protein technologies to market.
In addition to strategic partnerships, Burcon is collaborating with food processors to explore opportunities to leverage Burcon's core protein extraction and purification platform for use in upcycled protein production arising from under-utilized crops or byproducts that are otherwise disposed as waste or sold as animal feed. Burcon's technologies are capable of extracting high-quality ingredients that add value to the food supply chain which can contribute to reducing food waste and supporting sustainable farm-to-fork solutions. Food processors in the industry recognize the importance of reducing their carbon footprint and are looking to Burcon for solutions with upcycling initiatives.
The executive search process for a new chief executive officer of Burcon is at an advanced stage. Working closely with Kincannon & Reed, an executive search firm specialising in the food and agribusiness sectors, Burcon's board of directors has shortlisted a few select individuals, all of whom are seasoned professionals within the specialty food ingredient space. Burcon's board is very encouraged by the calibre of candidates that have come forward and the process is now in its final stages.
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.
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