VANCOUVER, March 28 - Burcon NutraScience Corporation (TSX-VEN: BU) announced today that Burcon has signed a letter of intent with Archer Daniels Midland Company (NYSE: ADM) to enter into a licensing and development agreement to manufacture and market Puratein(R) and Supertein(TM) canola protein isolates utilizing Burcon's patented extraction technology.
The letter of intent as executed sets forth certain basic terms concerning a licensing and development agreement between ADM and Burcon, which generally contemplates:
(i) Completing the development of a commercial process to produce
Puratein(R) and Supertein(TM) canola protein isolates ("the
Products"), special grades of the Products and derivative
(ii) Developing commercial applications for the Products;
(iii) Funding the construction of one or more full-scale commercial
plants to produce the Products; and
(iv) Promoting, marketing and selling the Products worldwide for all
Final terms of the transaction are subject to negotiation and execution of definitive agreements, and no legally binding or enforceable agreement or commitment on the part of ADM or Burcon is intended to arise until execution of such definitive agreements.
Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans. Burcon's goal is to develop Puratein(R) and Supertein(TM) to participate with soy, dairy and egg proteins in the expanding multi-billion-dollar protein ingredient market, with potential uses in prepared foods, nutritional supplements and personal care products.
According to Johann F. Tergesen, President & COO of Burcon, "Burcon has been searching for a partner with strength in production, sales and marketing of specialty ingredients to profit from Burcon's novel protein extraction technology and this timely opportunity. We have sought a partner with experience in new product development and global reach, which could provide speed to market and make our proteins available worldwide. We anticipate that this intended alliance can meet those goals."
Archer Daniels Midland Company (NYSE: ADM) is a world leader in agricultural processing. The Company is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in soy meal and oil, ethanol, high fructose corn syrup (HFCS) and flour. In addition, ADM is building a position in such value-added products as specialty food ingredients, bioproducts and nutraceuticals. Headquartered in Decatur, Illinois, ADM has over 24,000 employees, more than 260 processing plants and net sales for the fiscal year ended June 30, 2002, of $22.6 billion. Additional information can be found on ADM's web site at http://www.admworld.com/.
Based in Vancouver, British Columbia, Burcon NutraScience Corporation (TSX-VEN: BU) is a research and development company developing a portfolio of composition, application and process patents around its plant protein extraction and purification technology. The goal of Burcon's research is to develop its patented process to leverage inexpensive oilseed meals for the production of purified plant proteins that exhibit valuable nutritional, functional or nutraceutical profiles. Additional information can be found on the Burcon web site at http://www.burcon.ca/.
The TSX Venture Exchange 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 that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding the prospect for future success depend upon our ability to develop and sell products, which we do not produce today and cannot be sold without further research and development. When used in this press release, the words "goal," "intend," "believes" and "potential" and similar expressions, generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties. In light of the many risks and uncertainties surrounding the development of a source of protein from canola meal, you should understand that we cannot assure you that the forward looking statements contained in this press release will be realized.