CognitiveSeven developed the project’s financial model and assisted throughout the capital raising process for this transaction involving over $85 million in debt financing from a lender syndicate including EDC, FCC and the CIBC.
Benefit to Client
Client Challenge
CognitiveSeven Role
Benefit to Client
Benefit to Client
Client Challenge
CognitiveSeven Role
- The client, Merit Functional Foods, required long-term financing to build and fund the first facility in the world with the capability to produce food-grade canola protein ready and safe for human consumption.
- The new facility will be set up in Winnipeg, Manitoba, Canada with a projected forecast to utilize 10,000 metric tonnes of yellow peas and 17,000 tonnes of canola seed in its first year using 100 percent of its inputs from Canadian producers.
- Clients required the development of a bankable financial model tailored to the project economics and evolving financial terms.
- Collected and reviewed all relevant revenue and cost projections from the client in relation to the new facility.
- Starting with management’s initial project forecast, CognitiveSeven created a stable, adaptable, long-term financial model.
- Advised the clients throughout the negotiation process with lenders on the agreement terms.
- Reviewed and provided comments on the loan agreement documents.
- Modified the financial model as negotiations progressed in response to evolving commercial and financial terms.
- Performed sensitivity analysis to assess/quantify the risk profile of the project.
- CognitiveSeven’s financial model was relied on to support negotiations and achieve financial close on a debt financing package of up to $85 million to fund the construction of a new pea and canola protein production facility for the client, Merit Functional Foods.
- The debt financing was negotiated with a syndicate of lenders including Export Development Canada (EDC), Farm Credit Canada (FCC) and the Canadian Imperial Bank of Commerce (CIBC).
- CognitiveSeven helped to accelerate project planning and discussions amongst key stakeholders in support of Merit’s growth plans.
- CognitiveSeven helped with ongoing financial and strategic advisory to Merit Functional Foods.