VANCOUVER, Sept. 17 - Burcon NutraScience Corporation (TSX-VEN: BU), is pleased to announce that it has entered into a licensing and development agreement with Archer Daniels Midland Company (NYSE: ADM) to commercialize Burcon's canola protein ingredients, including Puratein(R) and Supertein(TM).
The license and development agreement between ADM and Burcon outlines the process by which the two parties will carry out final development of the technology to produce Puratein and Supertein canola protein isolates, as well as special grades of the products and derivative products. The agreement contemplates that ADM will develop applications for the products, obtain regulatory approvals, construct one or more full-scale production facilities and have the exclusive right to produce, promote, market and sell the products worldwide.
"This agreement marries ADM's strengths in the development, production, sales and marketing of specialty food ingredients with Burcon's novel protein extraction technology," said Johann F. Tergesen, Burcon's President & COO. "Together, our objective is to chart a path through the final development process that will ensure speed to market for our products."
Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans. ADM is one of the world's largest processors of canola and Burcon has developed a process to extract and purify valuable proteins from canola meal. Canola meal and canola oil are the co- products of the canola crushing process.
Protein ingredients are used in a wide variety of foods, personal care products and other commercial and industrial applications. The protein ingredient industry is currently experiencing rapid growth, with plant proteins in particular in high demand as a result of scientific advances and the public's changing perception of the safety of animal-based food products. Estimates of the global market for protein ingredients now exceed US$ 10 billion.
Archer Daniels Midland Company is a world leader in agricultural processing and 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, corn sweeteners and flour. In addition, ADM is building a position in value-added products such as specialty food ingredients, bioproducts and nutraceuticals (such as Vitamin E and sterols). Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 270 processing plants and net sales for the fiscal year ended June 30, 2003 of US$30.7 billion. Additional information can be found on ADM's web site at 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 Burcon's web site at www.burcon.ca .
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.