20:01:28 EST Tue 29 Nov 2022
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Burcon NutraScience Corp
Symbol BU
Shares Issued 108,728,742
Close 2022-09-19 C$ 0.50
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Burcon pays Merit $947,867 for $3-million financing

2022-09-19 16:18 ET - News Release

Mr. Peter Kappel reports


Burcon NutraScience Corp. has provided an update on the production progress and financing of its joint venture, Merit Functional Foods Corp.

Burcon announces that it has advanced $947,867 to Merit, which represents Burcon's proportionate share of an aggregate $3-million financing 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 chief financial officer 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 Corp.

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 and sunflower seed, among other plant sources. In 2019, Merit Functional 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 licence from Burcon, best-in-class pea and canola proteins for the food and beverage industries.

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