Burcon NutraScience Corporation, a B.C. plant protein company and one of the names behind Merit Functional Foods in Winnipeg — which entered receivership in 2023 — has partnered with investors to purchase a so-far unnamed plant protein production facility in North America.
In a press release on Feb. 3, Burcon announced its partnership with ProMan, LLC and their plans to purchase the facility early in 2025. There have been no details released on the location of the facility.
“We are excited to join forces with Burcon to deliver their groundbreaking plant-based protein solutions to market,” said John Vassallo, a director and shareholder of Burcon, and the driving force behind ProMan.
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“This partnership reflects our strong belief in the future of sustainable, plant-based nutrition and Burcon’s ability to lead in this rapidly expanding industry.”
Kip Underwood, Burcon’s chief executive officer, said the partnership “marks a pivotal step in Burcon’s evolution.”
“By pairing a strategic real estate investment with a proven go-to-market approach, we are seizing the best opportunity in our history to establish a direct route to market for our innovative protein technologies.”
Under the deal, ProMan will complete acquisition of the production facility by April 30, 2025. Burcon will be the exclusive operator of the facility under a seven-year manufacturing agreement, in which time it will produce plant-based proteins derived from pea, canola, soy, hemp, sunflower seeds and other plant sources and will “use ProMan as its exclusive manufacturer of Burcon’s protein products,” according to the release. Burcon must also secure at least $7 million in funding.
After the seven years, the deal transitions to a 10-year lease, in which Burcon will lease from ProMan. If ProMan wishes to sell the facility, they must give Burcon first right of refusal on the purchase of the building.
Burcon expects first-year sales between $1-3 million, “with double digit revenue expected in year two,” the release said. They expect profitability in 2026.
Echoes of Merit
Burcon is probably best known in Manitoba a major shareholder in Merit Functional Foods, the Winnipeg-based pea and canola protein processor, which opened in early 2021 only to go into receivership on March 1, 2023.
Burcon later announced it was working on a bid for the Merit assets, in co-operation with an industry plant protein company, but the identity of the other party was not made public.
Court-appointed receiver PricewaterhouseCoopers Inc. (PwC) said in its report filed on Jan. 23, 2025, with the Court of King’s Bench in Winnipeg, that ongoing efforts to sell the Merit plant had not yet led to an executed asset purchase agreement.
PwC said it “has entertained a number of expressions of interest and conducted a number of site visits throughout 2024,” and that it continues to negotiate with parties expressing interest in acquiring the assets.
Burcon did not respond to requests for further comment as of press time.
