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Highlights
- Burcon’s alliance partner, ProMan, signs agreement to acquire a North American protein production facility.
- Acquisition strengthens Burcon’s control over commercial production and accelerates product launch.
- Commercial-scale production of Burcon’s plant-based proteins set to begin in 2025.
Burcon NutraScience Corporation (TSX:BU), a global leader in the development of plant-based proteins for food and beverage industries, has announced a significant step forward in its business strategy. Its alliance partner, RE ProMan, LLC ("ProMan"), has signed a Purchase and Sale Agreement (PSA) to acquire a protein production facility in North America. This acquisition is poised to enhance Burcon’s commercial operations, bringing it one step closer to delivering its plant-based protein products to the market.
The agreement, entered into by ProMan—a company led by Burcon’s director and shareholder, Mr. John Vassallo—stipulates the acquisition of a commercial-scale production facility. The transaction is subject to certain conditions, including the completion of due diligence and approval from both parties.
John Vassallo, Burcon’s director, expressed his excitement about the development: "This acquisition is the result of months of dedication and collaboration between ProMan and Burcon. It underscores our strong confidence in Burcon’s proprietary protein technologies, leadership, and ability to successfully execute a capital-light strategy." This move marks a significant milestone for Burcon, as it seeks to scale up the commercial production of its innovative plant-based proteins.
Kip Underwood, Burcon’s CEO, shared further enthusiasm: "A dedicated commercial facility gives us a direct path to market for all our protein products, putting us in control of our own commercial production. We are excited to begin production and to deliver our products to prospective customers." This acquisition offers Burcon a crucial level of control over the production process, ensuring the company can meet growing demand for plant-based protein alternatives in the food and beverage sector.
The newly acquired facility, which was selected after reviewing several potential sites, will be equipped to produce Burcon’s entire protein portfolio. With a detailed plan in place for facility start-up, raw material procurement, production ramp-up, and product launch, Burcon is on track to begin commercial-scale production in the first half of 2025. The facility will play a pivotal role in scaling Burcon’s operations, ensuring the company can meet the needs of its growing customer base.
