Establishes New Operating Entity
Burcon NutraScience Corporation (TSX: BU), a global leader in developing functionally and nutritionally valuable plant-proteins, is pleased to announce that it has entered into a joint venture partnership with an investor group to build a new C$65 million pea-protein and canola-protein commercial production facility in Western Canada.
The protein production facility, which is planned to initially process approximately 20,000 tonnes of peas per year starting in mid-2020, will produce Burcon’s Peazazz® and Peazac™ pea proteins, as well as Burcon’s Supertein®, Puratein® and Nutratein® canola proteins.
Highlights of the Production Plant and Joint Venture Agreement
- Establishes a joint venture to build and operate a $65 million plant protein production facility.
- JV partner investor group has extensive operations expertise in production facility design and startup, as well as considerable expertise in the manufacturing and sale of plant proteins.
- JV partner investor group to invest up to $16 million in capital contributions in joint venture partnership.
- Enters into 20-year exclusive license agreement for Burcon’s pea and canola protein technologies.
- Plant protein production facility designed to produce Burcon’s Peazazz® and Peazac™ pea proteins, as well as Burcon’s Supertein®, Puratein® and Nutratein® canola proteins.
- World’s only commercial-scale food-grade canola protein production facility.
- Phase 1 production processing capacity of 20,000 tonnes per year.
- Funding structure provides significant equity position for Burcon.
- Ability to produce plant protein blends with exceptional nutritional value.
- Advanced state of readiness: completion projected in mid-2020.
- Production plant design incorporates ability to efficiently expand processing capacity in the future.
- Advanced state of product development discussions with fast-moving consumer goods companies.