Burcon JV Company Merit Functional Foods Secures Additional $10 Million Funding
A new production facility to produce high quality pea and canola proteins
Burcon NutraScience Corporation (“Burcon”) (TSX:BU, OTCQB:BUROF), a global technology leader in the development of plant-based proteins, is pleased to announce that its joint venture company, Merit functional foods Corporation (“Merit Functional Foods” or “Merit”) has secured additional debt financing of $10 million in the form of a 10-year interest free loan from Agriculture and Agri-Food Canada (the “AIP Loan”).
Photo by Sharon McCutcheon on Unsplash
“With today’s announcement, Merit has further strengthened its financial position as it drives forward to complete its state-of-the-art plant protein production facility in Winnipeg,” said Johann F. Tergesen, Burcon’s president and chief executive officer, adding, “Merit fully anticipates future increases in demand and is well positioned to increase planned capacity when the time is right.”
The interest free loan, repayable over 10 years, was approved under Agriculture and Agri-Food Canada’s AgriInnovate Program. Merit has now secured a combined $95 million debt financing package from a consortium of lenders including Export Development Canada, Farm Credit Canada, Agriculture and Agri-Food Canada, and the Canadian Imperial Bank of Commerce. Burcon expects that the $4 million guarantee Burcon previously provided to help facilitate Merit’s debt financing, will be released in stages over time as Merit draws down on the $10 million AIP Loan announced today.
Merit Functional Foods is building a 94,000 square foot production facility in Winnipeg, Manitoba to produce high quality pea and canola proteins. The state-of-the-art facility, which is scheduled to be completed in Q4 2020 will be the only commercial facility in the world with the capability to produce food grade canola proteins. This financing will further support Merit Functional Foods’ growth plans and allow for expansion of their pea and canola protein capacity.
Merit’s product portfolio currently consists of three product family offerings: pea protein, non-GMO canola protein, and MeritPro™, a unique lineup of nutritionally complete protein blends. Its entire portfolio aligns with a number of consumer label preferences, including allergen-free, gluten-free, non-dairy, non-GMO, non-soy and vegan.
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