Vancouver, British Columbia--(Newsfile Corp. - November 14, 2024) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in the development of plant-based proteins for foods and beverages, reported results for the fiscal second quarter ended September 30, 2024.
"We continue to build a robust sales funnel for our protein products with over 80 prospective customers evaluating our protein products and many in the late stages of evaluation," said Kip Underwood, Burcon's chief executive officer. "We are committed to executing our capital-light business plan by ramping production, launching new product lines and capturing recurring sales. We look forward to updating everyone at Burcon's virtual Investor Presentation scheduled for November 20th".
Operational highlights for the second quarter ended Sept 30, 2024:
During the quarter, Burcon:
- built a robust sales pipeline with over 80 prospective customers evaluating its proteins;
- achieved the first commercial production of its canola protein isolate;
- completed two separate protein production campaigns focused on product quality; and
- welcomed Mr. James Pekar, a veteran executive in the dairy and food industry, as a director.
Subsequent to the quarter-end, Burcon:
- launched Puratein® canola protein into multi-billion-dollar egg replacement market; and
- completed process scale up project for contract research customer
Management Commentary
Our fiscal second quarter marked significant progress in our go-to-market strategy as we ramped up commercial production, expanded our customer pipeline, and engaged with leading consumer brands. We achieved our first commercial production of canola protein isolate-a milestone demonstrating Burcon's scale-up expertise. Prospective customers are currently evaluating commercial samples and providing excellent feedback on the taste, texture, and functionality of our proteins. We are well-positioned to capitalize on strong customer demand and capture a share of the growing multi-billion-dollar ingredient market.
With over 80 prospective customers actively evaluating Burcon's protein products, we have established a robust pipeline for potential recurring sales. Since receiving commercial samples, a number of customers have expanded their product trials and moved into the late stages of evaluation. Additionally, our canola protein's entry into the egg replacement market has sparked new interest from customers seeking sustainable, price-stable ingredients. We continue to work closely with prospective customers to support their product development needs.
At Burcon's 2024 annual general and special meeting of shareholders, Mr. James Pekar was elected to our board of directors. Mr. Pekar has extensive experience in the dairy and food ingredient industries. We are pleased to welcome Mr. Pekar and look forward to his valuable insights.
In addition to technology scale-up and sales, we continue to explore opportunities to expand our go-to-market strategy, which includes increasing production capacity, launching new product lines, and converting prospectives into recurring sales. We are committed to executing our capital-light business plan and seizing opportunities that can accelerate our path to profitability.
Financial Results (in Canadian dollars)
The Company generated $40,000 of revenues in the current quarter from the sale of its protein isolate and the provision of contract research services, compared to $184,000 of royalty revenues in the same year-ago quarter.
Burcon reported a net loss of $2.4 million or $0.02 per basic and diluted share for the current quarter, as compared to $1.4 million or $0.01 per basic and diluted share in same period last year.
Gross research and development expenses were $1.3 million, as compared to $0.9 million in the same year-ago quarter. The increase is due to an increase is analyses and testing costs as the Company launched commercialization of its Canola protein isolate as well as an increase in intellectual property expenses as the Company had three inventions enter the national phase of the patent application process.
General and administrative expenses increased by $131,000 during the second quarter over the same year-ago quarter. The increase is primarily due to $113,000 of stock-based compensation issued to consultants in respect of services provided in the quarter as well as increased investor relations expenses as the Company restarted its investor relations efforts following its March 2024 private placement. This increase is partially offset by a reduction in salaries and benefits expense due to lower employee stock-based compensation expense and staff changes.
At September 30, 2024, cash balances totaled $1.0 million compared to $4.2 million at March 31, 2024. In the prior fiscal year, Burcon met the conditions for closing tranche two of the Large Scale loan facility and drew down $1.0 million of the $5.0 million facility. In the six months ended September 30, 2024, the Company made no further draws on the facility. The Company has an ongoing funding agreement with PIC for the scale-up and commercialization of hempseed and sunflower seed proteins and the Company received $218,000 of funding in the current quarter, compared to no funding the comparable year-ago quarter.
Virtual Investor Presentation Details
Burcon will hold a virtual investor presentation on Wednesday, November 20, 2024 at 5:00pm ET.
A link to the webcast of the conference call is available on Burcon's website under "Presentations" or directly here. The webcast will also be archived for future playback.
Investors interested in participating in the live call can dial in using the details below:
Date: Wednesday November 20, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in (North America): 1-800-717-1738
Dial-in (toll/international): 1-646-307-1865
Conference ID: 64804
About Burcon NutraScience Corporation
Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. Our proteins exhibit superior functionality, taste and nutrition, making them ideal ingredients for food formulators. With over two decades of experience, Burcon has amassed an extensive patent portfolio covering its novel plant-based proteins derived from pea, canola, soy, hemp and sunflower seeds, among other plant sources. Burcon is committed to delivering next-generation, best-in-class protein solutions, positioning itself as a key player in the rapidly expanding plant-based market. Supporting the growing trend towards a plant-based diet, Burcon offers sustainable protein ingredients that we believe are better for you and better for the planet. For more information, visit www.burcon.ca.
Forward-Looking Information Cautionary Statement
The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified by words such as "anticipate," "aim", "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "may," "should," "could," "will" and similar references to future periods. All statements included in this release, other than statements of historical fact, are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the implementation of our business model and growth strategies; trends and competition in our industry our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; and other risks and factors detailed herein and from time to time in the filings made by Burcon with securities regulators and stock exchanges, including in the section entitled "Risk Factors" in Burcon's annual information form for the year ended March 31, 2024 and its other public filings with Canadian securities regulators on SEDAR+ at www.sedarplus.ca. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Any forward-looking statement or information speaks only as of the date on which it was made, and, except as may be required by applicable securities laws, Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although Burcon believes the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, investors should not rely on such statements.
Industry and Investor Contact
Paul Lam
Director, Investor Relations and Communications
Burcon NutraScience Corporation
Tel (604) 733-0896, Toll-free (888) 408-7960
plam@burcon.ca www.burcon.ca
Media Contact:
Steve Campbell, APR
President
Campbell & Company Public Relations
Tel (604) 888-5267
TECH@CCOM-PR.COM
Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
| As at September 30, 2024 and March 31, 2024 | ||||||||
| (In Canadian dollars) | ||||||||
| September 30, | March 31, | |||||||
| 2024 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | 1,036,992 | 4,197,141 | ||||||
| Amounts receivable and other receivables | 322,878 | 591,726 | ||||||
| Inventory | 197,295 | 68,319 | ||||||
| Prepaid expenses and deposits | 484,905 | 330,033 | ||||||
| 2,042,070 | 5,187,219 | |||||||
| Property and equipment | 1,105,314 | 1,096,273 | ||||||
| Deferred development costs | 5,163,398 | 5,374,149 | ||||||
| Goodwill | 1,254,930 | 1,254,930 | ||||||
| 9,565,712 | 12,912,571 | |||||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | 897,646 | 843,449 | ||||||
| Current portion of lease liabilities | 23,397 | 260,845 | ||||||
| Deferred revenue and government assistance | 214,015 | 250,000 | ||||||
| Current portion of secured loan | 5,674,677 | - | ||||||
| 6,809,735 | 1,354,294 | |||||||
| Secured loan | 1,022,093 | 6,404,778 | ||||||
| Lease liabilities | 78,223 | - | ||||||
| 7,910,051 | 7,759,072 | |||||||
| Shareholders' Equity | ||||||||
| Capital stock | 122,221,548 | 122,069,825 | ||||||
| Contributed surplus | 17,430,480 | 17,283,934 | ||||||
| Options | 7,420,965 | 7,436,262 | ||||||
| Warrants | 670,371 | 237,201 | ||||||
| Restricted share units | 183,054 | 172,776 | ||||||
| Deficit | (146,270,757) | (142,046,499) | ||||||
| 1,655,661 | 5,153,499 | |||||||
| 9,565,712 | 12,912,571 | |||||||
Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(Unaudited)
| For the three and six months ended September 30, 2024 and 2023 | ||||||||||||||||
| (In Canadian dollars) | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | 40,458 | 184,359 | 277,075 | 184,359 | ||||||||||||
| Cost of Sales | 159,952 | - | 372,246 | - | ||||||||||||
| Gross Margin | (119,494 | ) | 184,359 | (95,171 | ) | 184,359 | ||||||||||
| Research and development | 1,150,201 | 909,422 | 1,833,868 | 1,849,863 | ||||||||||||
| General and administrative | 934,480 | 803,157 | 2,038,188 | 1,635,646 | ||||||||||||
| Loss from operations | (2,204,175 | ) | (1,528,220 | ) | (3,967,227 | ) | (3,301,150 | ) | ||||||||
| Interest and other income | 14,486 | 220,294 | 43,903 | 247,673 | ||||||||||||
| Interest and other expense | (150,928 | ) | (149,859 | ) | (305,995 | ) | (280,833 | ) | ||||||||
| Foreign exchange (loss) gain | (14,370 | ) | 24,166 | 5,061 | (11,392 | ) | ||||||||||
| Loss and comprehensive loss for the period | (2,354,987 | ) | (1,433,619 | ) | (4,224,258 | ) | (3,345,702 | ) | ||||||||
| Basic and diluted loss per share | (0.02 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | ||||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229997
SOURCE: Burcon NutraScience Corporation
