Burcon Forms Alliance with Strategic Investor Group to Acquire Protein Production Facility
Burcon NutraScience has formed an alliance with a strategic investor group to acquire and operate a commercial protein production facility. The investor group, led by a Burcon board member, will fund the acquisition while Burcon will operate the facility. The acquisition is expected to close in Q1 2025, with production starting in H1 2025.
This strategic move will enable Burcon to launch its entire portfolio of plant-based protein ingredients. The company has built a pipeline of over 80 prospective customers evaluating its protein ingredients, with several in late-stage product trials for hemp and canola proteins. The facility acquisition aims to accelerate new protein launches and increase market share in the protein ingredient market.
Burcon NutraScience ha formato un'alleanza con un gruppo di investitori strategici per acquisire e gestire un impianto di produzione di proteine commerciali. Il gruppo di investitori, guidato da un membro del consiglio di Burcon, finanzierà l'acquisizione mentre Burcon gestirà l'impianto. Si prevede che l'acquisizione si concluda nel primo trimestre del 2025, con inizio della produzione nella prima metà del 2025.
Questa mossa strategica permetterà a Burcon di lanciare il suo intero portafoglio di ingredienti proteici a base vegetale. L'azienda ha sviluppato una rete di oltre 80 potenziali clienti che stanno valutando i suoi ingredienti proteici, con diversi in fase avanzata di sperimentazione per proteine derivate da canapa e colza. L'acquisto dell'impianto mira ad accelerare il lancio di nuove proteine e ad aumentare la quota di mercato nel settore degli ingredienti proteici.
Burcon NutraScience ha formado una alianza con un grupo de inversores estratégicos para adquirir y operar una instalación comercial de producción de proteínas. El grupo de inversores, liderado por un miembro de la junta de Burcon, financiará la adquisición, mientras que Burcon operará la instalación. Se espera que la adquisición se cierre en el primer trimestre de 2025, con el inicio de la producción en la primera mitad de 2025.
Este movimiento estratégico permitirá a Burcon lanzar todo su portafolio de ingredientes proteicos de origen vegetal. La empresa ha construido una base de más de 80 clientes potenciales que están evaluando sus ingredientes proteicos, con varios en etapas avanzadas de pruebas de productos para proteínas de cáñamo y canola. La adquisición de la instalación tiene como objetivo acelerar el lanzamiento de nuevas proteínas y aumentar la cuota de mercado en el mercado de ingredientes proteicos.
Burcon NutraScience는 상업용 단백질 생산 시설을 인수하고 운영하기 위해 전략적 투자자 그룹과 제휴를 형성했습니다. Burcon 이사회의 일원이 이끄는 투자자 그룹이 인수를 위한 자금을 지원하며, Burcon은 해당 시설을 운영합니다. 인수는 2025년 1분기 내에 완료될 것으로 예상되며, 생산은 2025년 상반기부터 시작될 예정입니다.
이 전략적 움직임은 Burcon이 식물 기반 단백질 성분의 전체 포트폴리오를 출시할 수 있게 합니다. 이 회사는 80개 이상의 잠재 고객을 평가 중이며, 감자 및 카놀라 단백질에 대한 제품 시험이 진행 중인 고객도 포함되어 있습니다. 시설 인수는 새로운 단백질 출시를 가속화하고 단백질 성분 시장에서 시장 점유율을 높이는 것을 목표로 하고 있습니다.
Burcon NutraScience a formé une alliance avec un groupe d'investisseurs stratégiques pour acquérir et exploiter une installation de production de protéines commerciales. Le groupe d'investisseurs, dirigé par un membre du conseil d'administration de Burcon, financera l'acquisition tandis que Burcon exploitera l'installation. L'acquisition devrait se finaliser au premier trimestre 2025, avec un début de production prévu pour le premier semestre 2025.
Ce mouvement stratégique permettra à Burcon de lancer tout son portefeuille d'ingrédients protéiques d'origine végétale. La société a développé un pipeline de plus de 80 clients potentiels évaluant ses ingrédients protéiques, avec plusieurs en phase avancée d'essais produits pour des protéines de chanvre et de colza. L'acquisition de l'installation vise à accélérer le lancement de nouvelles protéines et à augmenter la part de marché dans le secteur des ingrédients protéiques.
Burcon NutraScience hat eine Allianz mit einer Gruppe strategischer Investoren gegründet, um eine kommerzielle Produktionsstätte für Proteine zu erwerben und zu betreiben. Die Investorengruppe, die von einem Vorstandsmitglied von Burcon geleitet wird, finanziert den Erwerb, während Burcon die Anlage betreibt. Der Erwerb soll im ersten Quartal 2025 abgeschlossen werden, mit Produktionsbeginn in der ersten Hälfte von 2025.
Dieser strategische Schritt ermöglicht es Burcon, sein gesamtes Portfolio an pflanzenbasierten Protein-Zutaten auf den Markt zu bringen. Das Unternehmen hat eine Pipeline von über 80 potenziellen Kunden aufgebaut, die seine Protein-Zutaten bewerten, wobei einige in fortgeschrittenen Produktversuchen für Hanf- und Rapsprotein sind. Der Erwerb der Anlage zielt darauf ab, die Einführung neuer Proteine zu beschleunigen und den Marktanteil im Bereich der Protein-Zutaten zu erhöhen.
- Strategic investor group to fully fund facility acquisition
- Burcon to operate and control the production facility
- Over 80 prospective customers in sales pipeline
- Multiple customers in late-stage product trials
- Expanded production capability for entire protein portfolio
- Acquisition terms still under negotiation
- Production facility not operational until H1 2025
- Specific facility target not yet finalized
Investor Group Sees Burcon Technologies as Powerful Disruptor to Protein Market
Vancouver, British Columbia--(Newsfile Corp. - November 20, 2024) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in the development of plant-based proteins for foods and beverages, is pleased to announce that it has formed an alliance with a strategic investor group, led by a Burcon board member, with the intention to acquire and operate a commercial protein production facility. The parties are in the process of negotiating the terms of the alliance. If successful, Burcon will become the operator of the facility, expanding its production capabilities to include the entirety of Burcon's best-in-class portfolio of plant-based protein ingredients.
"This is truly a transformative opportunity for Burcon that will accelerate our capital-light strategy," said Kip Underwood, Burcon's chief executive officer. "With expanded capacity and full control of a protein production facility, we can launch our entire suite of unique protein ingredients to market. We are thrilled about this alliance and deeply appreciate the trust placed in us. This strategic alliance marks a significant step forward in bringing our technologies to market."
Highlights of the Alliance Intent
- Strategic investor group to fund and acquire a protein production facility;
- Burcon to become the operator of acquired facility;
- Burcon to launch and scale up its entire portfolio of protein technologies;
- Acquisition expected to close during first quarter of 2025; and
- Production facility expected to come online during first half of 2025
Strategic Alliance and Protein Production Facility
The investor group has strong confidence in the future of plant-based proteins and believes Burcon's technologies can lead the plant-based food revolution.
The investor group plans to fund and acquire an existing protein production facility, with Burcon expected to take on the role of operator. The group is in late-stage negotiations on multiple potential acquisition targets, each a commercial facility that has the size and scale to fully enable execution of Burcon's growth strategy. The acquisition of the chosen target facility is expected to close during the first quarter of 2025.
Robust Sales Funnel and New Product Launches
Burcon is building a robust sales pipeline, with over 80 prospective customers currently evaluating its protein ingredients. The Company has successfully launched and commercially produced its hemp and canola protein isolates, while additional protein technologies are ready for commercial scale-up. Since receiving commercial samples of Burcon's hemp and canola proteins, a number of prospective customers have advanced to late-stage product trials. With a production facility, Burcon anticipates accelerating new protein launches and streamlining its sales process to capture a larger share of the multi-billion-dollar protein ingredient market.
About Burcon NutraScience Corporation
Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. Our proteins exhibit superior functionality, taste and nutrition, making them ideal ingredients for food formulators. With over two decades of experience, Burcon has amassed an extensive patent portfolio covering its novel plant-based proteins derived from pea, canola, soy, hemp and sunflower seeds, among other plant sources. Burcon is committed to delivering next-generation, best-in-class protein solutions, positioning itself as a key player in the rapidly expanding plant-based market. Supporting the growing trend towards a plant-based diet, Burcon offers sustainable protein ingredients that we believe are better for you and better for the planet. For more information, visit www.burcon.ca.
Forward-Looking Information Cautionary Statement
The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified by words such as "anticipate," "aim", "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "may," "should," "could," "will" and similar references to future periods. All statements included in this release, other than statements of historical fact, are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the implementation of our business model and growth strategies; trends and competition in our industry our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; and other risks and factors detailed herein and from time to time in the filings made by Burcon with securities regulators and stock exchanges, including in the section entitled "Risk Factors" in Burcon's annual information form for the year ended March 31, 2024 and its other public filings with Canadian securities regulators on SEDAR+ at www.sedarplus.ca. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Any forward-looking statement or information speaks only as of the date on which it was made, and, except as may be required by applicable securities laws, Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although Burcon believes the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, investors should not rely on such statements.
Industry and Investor Contact
Paul Lam
Director, Investor Relations and Communications
Burcon NutraScience Corporation
Tel (604) 733-0896, Toll-free (888) 408-7960
plam@burcon.ca www.burcon.ca
Media Contact:
Steve Campbell, APR
President
Campbell & Company Public Relations
Tel (604) 888-5267
TECH@CCOM-PR.COM
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230779
FAQ
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