Burcon NutraScience Corp (TSX:BU) announced that it intends to submit a formal proposal to acquire the business of Merit Functional Foods.
The provider of technology for the development of plant-based proteins for foods and beverages said as co-founder of Merit, Burcon believes it is in a unique position to bring the company's business to profitability, even as Merit has been placed in receivership as of March 1, 2023.
“Discussions with all parties continue to be constructive, and we remain confident that Burcon's proposal is both attractive and competitive,” Burcon NutraScience CEO Kip Underwood said in a statement.
READ: Burcon Nutrascience reports quarterly record of royalty revenues from licensee Merit Functional Foods
“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,” he added.
Underwood also noted that Merit's facility was designed and built to produce protein ingredients using Burcon's technologies.
The company added that it has the process engineering expertise to improve bottom-line performance through production efficiency gains.
As well, Burcon stated that by leveraging its innovation portfolio to launch new plant proteins beyond pea and canola, the company can access new markets while achieving faster growth.
Burcon remains actively engaged in discussions with Merit's appointed receiver, PricewaterhouseCoopers Inc, LIT, according to the company.
Burcon NutraScience is a global technology leader in the development of plant-based proteins for foods and beverages.
Contact Sean at sean@proactiveinvestors.com