The Winnipeg-based plant protein company was placed into receivership on Wednesday, March 1st.
The company's lenders Farm Credit Canada and Export Development Canada filed an application for the appointment of a receiver.
In 2019, Merit Functional Foods Corporation was developed as a joint venture between Burcon ( a global technology leader in the development of plant-based proteins) and three other investors.
Construction began that fall on the projected $150 million, 94-thousand-square-foot production facility to produce novel pea and canola protein ingredients for use in food and beverages.
Burcon NutraScience Corporation says this ( the receivership ) was an anticipated step and does not alter its plan to acquire Merit's business.
In a press release on the company website, they note they are in active discussions with PricewaterhouseCoopers Inc the appointed receiver.
Merit Functional Foods co-CEO Ryan Bracken says that while their proteins have been formulated into countless products globally, they couldn’t quite get to the level of cashflow needed to operate the business profitably, quick enough.
He also referenced some pandemic-related challenges that led to the company’s closure.