STKL - Burcon: Partner Bunge's $500 Million To $1 Billion Of Growth Capex Within Alternative Proteins Bodes Well
- Positive development with Bunge disclosing $500 million-$1 billion out of its $2 billion growth capex pipeline is within the alternative protein. Bunge’s increasing interest/spend in plant-based protein is positive for Burcon.
- Bunge increased its stake in Merit JV with Burcon in 2H’2021 and its path to an even larger Merit stake leads to several positive catalysts for Burcon shares.
- Non-dilutive $10 million credit line from Burcon’s largest shareholder, Firewood (wholly-owned by Burcon director) is a strong sign of support & positive indicator for the outlook ahead; new JV/CEO next catalysts.
- Merit shipping to large/small CPG companies globally and expects supply from Phase 1 of the commercial plant to be spoken for by end of 2022; would equate to C$60million in 2023 revenues.
- Despite overall market volatility, especially in the plant-based sector, the plant-based protein trend remains firmly in place; Nestle's CEO reiterated “once-in-a-generation” opportunity in Feb '22.
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Burcon: Partner Bunge's $500 Million To $1 Billion Of Growth Capex Within Alternative Proteins Bodes Well