Burcon NutraScience Corporation, a company developing novel protein ingredients from plant-based sources, has entered into a multi-year production agreement valued at approximately $6.8 million in aggregate.
The agreement will see Burcon produce for a leading provider of clean-label, plant-based ingredients at its facility in Galesburg, Illinois. Production volumes in the first year are expected to generate at least $1,400,000 in revenue for Burcon, and this will continue annually in subsequent years.
The deal marks a new stage of Burcon’s business strategy, allowing the company to generate significant revenue from its commercial contract manufacturing services.
“A major step in Burcon’s road to profitability”
Burcon announced in February that it had entered into a binding agreement with ProMan for the acquisition and operation of a protein production facility in Galesburg, Illinois. ProMan purchased the facility in March, and granted Burcon exclusive access to its full manufacturing capacity.
Burcon commenced the commercial production of pea protein at the site earlier this month, marking the first time the company has had direct operational control over a commercial-scale production site. Output will ramp up through the second half of 2025, and positive cash flow is anticipated by the end of 2026.
“We’re pleased to secure a significant revenue stream using the production capabilities of the Galesburg facility,” said Burcon chief executive officer Kip Underwood. “This agreement represents a major step in Burcon’s road to profitability and supports our revenue target for calendar 2025. We look forward to building a long and successful relationship with this customer.”
