Burcon NutraScience Corporation provided an update on the production progress and funding of its joint venture, Merit Functional Foods Corporation. Burcon announces that it has advanced $947,867 to Merit, which represents Burcon's proportionate share of an aggregate $3 million financing provided by all shareholders of Merit in proportion to their equity interest in Merit. The financing addresses anticipated liquidity requirements of Merit as it continues to ramp up production and sales at its pea and canola protein production facility.

The Merit Loan has a term of 15 years, will initially be non-interest-bearing and have terms that are similar to previously advanced shareholder loans. The Merit Loan is subordinated to any indebtedness owed by Merit to each of its financial lenders, whether secured or unsecured. Merit has made marked improvements in production throughput and yield of its unique pea and canola protein ingredients.

Production issues arising from Merit undergoing fine-tuning and optimization last quarter have largely been resolved. In addition, Merit has successfully implemented its new Peazazz C™ process. Merit is on the path to reaching higher production and sales levels in the current and future quarters, with the goal of reaching continuous and consistent production.