VANCOUVER, BRITISH COLUMBIA, CANADA — A non-binding letter of intent signed Nov. 15 by Burcon NutraScience Corp. and Archer Daniels Midland Co. (ADM) details how the two companies plan to enter an agreement under which Burcon NutraScience will license its Clarisoy technology to ADM on an exclusive basis to produce, market and sell Clarisoy’s soy protein isolates worldwide. The two companies have agreed to negotiate and execute a definitive agreement no later than March 1, 2011.

According to the letter of intent, Vancouver-based Burcon NutraScience would grant an exclusive, worldwide and royalty-bearing license to ADM, Decatur, Illinois, U.S., for the Clarisoy soy protein isolate technology. Upon signing of a definitive agreement, a royalty stream would be payable to Burcon NutraSciences on a quarterly basis. The deal also involves engineering and design of a commercial Clarisoy production plant and financial incentives for ADM to expand Clarisoy sales globally.

Clarisoy is soluble, transparent and low in viscosity in acidic beverages. It allows for the production of transparent, protein-fortified beverages such as juices, soft drinks and sports drinks in a pH range down to 2.5. Clarisoy is heat-stable in acidic beverages, which allows for thermal processing.

“We have worked closely with ADM on Burcon’s canola technology and have valued our relationship with ADM for over seven years,” said Johann F. Tergesen, president and chief operating officer of Burcon NutraScience. “As a leader in the global food ingredient industry, and one of the world’s pre-eminent producers of soy proteins, ADM is the perfect partner to commercialize Burcon’s Clarisoy soy protein isolate. We believe Clarisoy’s potential in the global protein ingredient industry will be well-served through the license structure as contemplated in the letter of intent we have executed with ADM today.”