Burcon NutraScience Corporation, a global technology leader in the development of plant-based proteins for foods and beverages, has announced that it intends to submit a formal proposal to acquire the business of Merit Functional Foods (“Merit”).

Merit has been placed in receivership as of March 1, 2023. This was an anticipated step in the process of addressing Merit’s financial situation and does not alter Burcon’s plan to acquire Merit’s business. Burcon remains actively engaged in discussions with the appointed receiver, PricewaterhouseCoopers Inc, LIT.

“Discussions with all parties continue to be constructive, and we remain confident that Burcon’s proposal is both attractive and competitive,” said Kip Underwood, Burcon’s chief executive officer, adding, “Merit’s facility was designed and built to produce protein ingredients using Burcon’s technologies. Merit’s business is a strong strategic fit for Burcon by providing additional revenue sources, better connection to customers and markets, and direct influence over the manufacture of Burcon’s protein ingredients.”

As an innovator in the plant protein industry and a co-founder of Merit, Burcon believes that it is in a unique position to bring Merit’s business to profitability. Burcon has the process engineering expertise to improve bottom line performance through production efficiency gains. Moreover, by leveraging Burcon’s innovation portfolio to launch new plant proteins beyond pea and canola, Burcon can access new markets achieving faster growth. These compelling business synergies are why Burcon continues to work towards capitalizing on this significant opportunity.