Receiver still looking for buyer for Merit Functional Foods

by

There has yet to be a successful bid for Merit Functional Foods nine months after the plant protein company, with its processing plant in Winnipeg, Manitoba, entered receivership.

Merit’s receiver — PwC — filed a court update on Nov. 14 acknowledging the sales process launched in March had not resulted in any purchase agreement.

The company was able to sell its remaining inventory for $3.3 million and collect accounts receivable worth $571,000.

After receiving approval from the Manitoba Court of King’s Bench on November 23, Merit is using the inventory proceeds to pay off the remaining debt of around $4.16 million to its operating lender, CIBC.

The company also owed $95 million to its two main creditors — Export Development Canada (EDC) and Farm Credit Canada (FCC) — when it entered receivership on March 1.

Along with approving the payment to CIBC, the judge also agreed to keep a confidential supplementary update on Merit’s sales process sealed until the transaction is completed, as it contained prior bid information and other commercially-sensitive details.

Merit was founded in 2019 as a joint venture between Burcon NutraScience Corporation, a publicly-traded company that owns a patented protein extraction technology, and several food ingredient industry veterans. Bunge Limited also invested $30 million for a minority stake in the company in 2020.

A 94,000 square foot plant for extracting food-grade protein from peas and canola, which was projected to cost $150 million, was built on the northwest side of Winnipeg and commissioned in 2021.

Merit received at least $100 million in financing and funding from federal government-affiliated sources, including FCC, EDC, Protein Industries Canada, and Agriculture and Agri-Food Canada. The federal support for the company was highlighted in a June 2020 announcement by Prime Minister Justin Trudeau.

Wake up with RealAgriculture

Subscribe to our daily newsletters to keep you up-to-date with our latest coverage every morning.

Wake up with RealAgriculture

Please register to read and comment.

Privacy Preference Center

Necessary

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag
__cfduid

Marketing

Measuring interactions with the ads on the domain.

__gads,fsk_ut_2317
IDE

Statistics

These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.

_ga,_gid,_gat,_cb,_chartbeat2,_chartbeat4
_ga,_gid
metrics_token

Preferences

Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp

 

Register for a RealAgriculture account to manage your Shortcut menu instead of the default.

Register