A day after winning $45,000 in the Spark West competition, Midgard Insect Farm Inc. has sold a large stake in its business to a merchant bank from Ontario to help fund its expansion.

Headed by veterinary researcher Joy Hillier, Windsor, NS-based Midgard Insect Farm produces protein from crickets and converts it into its Dockside brand of pet treats.

On Thursday, Dane Creek Capital Corp. of Mississauga, Ont., said it has bought 48 percent of the company’s equity for an undisclosed price.  The statement said Dane Creek, which focuses on investments in the pet care industry, will help the young company with research and development. The goal is to help Midgard become a leading supplier to pet industry companies looking to incorporate insect protein into their products.

“Their support for my vision coupled with their pet industry and business management expertise will allow me to focus my time and energy on the developing science of cricket production and creating a high-quality product for the pet food industry,” said Hillier in the statement announcing the deal. “They will also be a valuable asset as we look to increase production and start hiring and training new personnel over the next year.”

Earlier this week, Midgard was listed as one of the six winners of Innovacorp’s Spark West competition, receiving $45,000 in development costs.

Midgard is one of a growing number of companies raising insects as an alternative and sustainable source of protein for both human and animal consumption. The company plans to produce whole ground cricket meal to meet growing demand for alternative proteins for pet food. Over the next 18 months, the company expects to expand its operations and increase staff by as many as 15 people.

Hillier, a registered veterinary technician and graduate of Dalhousie University’s Agricultural College, is dedicated to food security and sustainability, which led to her to work on edible insects.

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Crickets are considered an environmentally friendly source of protein because they are twice as efficient as chicken and six times more efficient than cattle at converting feed to protein. They also consume far less water than traditional protein sources.

Midgard will establish a 1,500-square-foot research facility in association with Perennia, a non-profit corporation in Bible Hill, NS, dedicated to food innovation. Hillier will work closely with Perennia’s food research scientists and nutritionists, focussing initially on consistency, an issue that has challenged the industry.

Midgard already has a relationship with Perennia, which worked with the Atlantic Canada Opportunities Agency and Nova Scotia Business Inc. to help with negotiations with Dane Creek.

“We recognised early on it would be important for us to vertically integrate our sources of sustainable ingredients for the Dockside brand of pet products,” said Dane Creek Chairman and CEO Mark Warren in the statement. “Additionally, as sustainability becomes a leading concern among pet owners, we believe there will be opportunities to expand the business to provide cricket protein to the pet industry as a whole. We were very impressed with Joy and her unique blend of scientific curiosity and entrepreneurial savvy and are excited to be given this opportunity to help her grow her business.”