Vancouver, British Columbia--(Newsfile Corp. - February 14, 2025) - 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 third quarter ended December 31, 2024.
"For the first time, Burcon will soon have full operational control of a facility to produce its entire portfolio of plant proteins," said Kip Underwood, Burcon's chief executive officer. "This marks a significant milestone for Burcon, reflecting our alliance partner's confidence in the market, our technology, and ability to execute."
Operational highlights for the third quarter ended December 31, 2024:
During the quarter, Burcon:
- Formed alliance with Re ProMan LLC ("ProMan") to acquire and operate protein production facility;
- Collaborated with Puratos to pioneer new canola protein applications;
- Announced rights offering to fund the production, marketing and sales of Burcon proteins;
- Launched next-generation Peazazz® pea protein;
- Launched Puratein® canola protein for egg replacement applications; and
- completed two separate contract research projects
Subsequent to the quarter-end, Burcon:
- Announced its alliance partner, ProMan, signed purchase and sale agreement to acquire protein production facility;
- Agreed to terms (the "Manufacturing Agreement") with ProMan for the purchase and operation of protein facility;
- Successfully closed rights offering with gross proceeds of $9.43 million; and
- Launched new-to-the-world Solatein sunflower protein isolate
Management Commentary
Burcon's fiscal 2025 third quarter marks a transformative period for the company as we make significant strides in executing our capital-light growth plan. The strategic alliance to acquire and operate a protein production facility represents a pivotal step in our efforts to commercialize our proprietary protein technologies at scale. This innovative partnership redefines traditional go-to-market strategies for foodtech companies and could be the foundation of Burcon's future success.
The facility acquisition is in its final due diligence phase, and we expect the transaction to close and the commencement of the term of the Manufacturing Agreement (as announced on February 3, 2025) in the coming weeks. Following that, Burcon will install proprietary unit operations and begin commercial scale production of its protein products during the first half of calendar 2025.
Our collaboration with Puratos highlights our continued commitment to innovation, demonstrating the versatility of canola protein in bakery and patisserie applications. In addition, by launching our Peazazz® pea protein and Solatein sunflower protein, we are accelerating the customer evaluation process with the goal of achieving speed to revenue.
We have over 100 former and prospective customers currently evaluating our proteins, many of whom are eager for a reliable commercial supply. Having full operational control of production enables us to consistently produce high-quality protein products to meet global demand. We anticipate our pea, hemp and canola proteins to be the first products delivered to customers, followed by our sunflower protein as demand increases.
Subsequent to quarter-end, we successfully raised gross proceeds of $9.43 million through a rights offering announced on November 20, 2024. With support from our shareholders, including Burcon directors and management who participated in the rights offering, we have secured well above the $7 million we needed for production, marketing, and sales initiatives. The successful closing of this offering further validates investor confidence in our technologies and our ability to execute.
Looking ahead, we are keenly focused on production, sales and driving long-term value for our shareholders. With a solid foundation in place, which includes a strong balance sheet and a direct route-to-market, we are confident in our ability to capitalize on sales opportunities and establish market leadership in protein innovation.
Financial Results (in Canadian dollars)
The Company generated $62,000 of revenues in the current quarter from the sale of its protein isolate and the provision of contract research services, compared to $nil revenues in the same year-ago quarter.
Burcon reported a net loss of $1.8 million or $0.01 per basic and diluted share for the current quarter, as compared to $2.0 million or $0.02 per basic and diluted share in same period last year.
Gross research and development expenses were $0.7 million, as compared to $1.0 million in the same year-ago quarter. The decrease is due to lower intellectual property, salaries and benefits, and laboratory operations expenditures as the company reduced spending and had lower stock-based compensation expense. The decreases were partially offset by an increase in analyses and testing costs as the Company launched commercialization of its canola protein isolate in the current fiscal year.
General and administrative expenses increased by $12,000 during the third 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. This increase is partially offset by a reduction in salaries and benefits expense due to lower stock-based compensation expense and staff changes.
The Company has an ongoing funding agreement with Protein Industries Canada ("PIC") for the scale-up and commercialization of hempseed and sunflower seed proteins and the Company received $78,000 of funding in the current quarter, compared to no funding the comparable year-ago quarter.
At December 31, 2024, cash balances totaled $0.6 million compared to $4.2 million at March 31, 2024. On February 13, 2025, the company announced that it closed a rights offering raising gross proceeds of $9.43 million.
Virtual Investor Presentation Details
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: Tuesday February 18, 2025
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: 37581
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. Forward-looking statements in this press release, include, among others, completion of the acquisition of the commercial production facility by ProMan and Burcon beginning commercial production of its protein products. 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; inability of ProMan to complete the purchase of the commercial production facility; inability of Burcon to begin commercial production of our protein products in 2025; 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 December 31, 2024 and March 31, 2024 | ||||||
| (In Canadian dollars) | ||||||
| December 31, | March 31, | |||||
| 2024 | 2024 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash | 591,025 | 4,197,141 | ||||
| Amounts receivable and other receivables | 41,318 | 591,726 | ||||
| Inventory | 236,329 | 68,319 | ||||
| Prepaid expenses and deposits | 309,370 | 330,033 | ||||
| 1,178,042 | 5,187,219 | |||||
| Property and equipment | 1,042,977 | 1,096,273 | ||||
| Deferred development costs | 5,058,023 | 5,374,149 | ||||
| Goodwill | 1,254,930 | 1,254,930 | ||||
| 8,533,972 | 12,912,571 | |||||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 708,004 | 843,449 | ||||
| Current portion of lease liabilities | 24,310 | 260,845 | ||||
| Deferred government assistance | 108,441 | 250,000 | ||||
| Current portion of secured loan | 2,034,207 | - | ||||
| 2,874,962 | 1,354,294 | |||||
| Secured loan | 5,669,493 | 6,404,778 | ||||
| Lease liabilities | 71,756 | - | ||||
| 8,616,211 | 7,759,072 | |||||
| Shareholders' Equity | ||||||
| Capital stock | 122,263,889 | 122,069,825 | ||||
| Contributed surplus | 18,771,713 | 17,283,934 | ||||
| Options | 6,117,519 | 7,436,262 | ||||
| Warrants | 670,371 | 237,201 | ||||
| Restricted share units | 148,970 | 172,776 | ||||
| Deficit | (148,054,701 | ) | (142,046,499 | ) | ||
| (82,239 | ) | 5,153,499 | ||||
| 8,533,972 | 12,912,571 | |||||
| Burcon NutraScience Corporation | |||||||||||||
| Condensed Consolidated Interim Statements of Operations and Comprehensive Loss | |||||||||||||
| (Unaudited) | |||||||||||||
| For the three and nine months ended December 31, 2024 and 2023 | |||||||||||||
| (In Canadian dollars) | |||||||||||||
| Three months ended | Nine months ended | ||||||||||||
| December 31 | December 31 | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues | 61,492 | - | 338,567 | 184,359 | |||||||||
| Cost of Sales | 287,375 | - | 659,621 | - | |||||||||
| Gross Margin | (225,883 | ) | - | (321,054 | ) | 184,359 | |||||||
| Research and development | 676,107 | 1,020,424 | 2,509,975 | 2,870,287 | |||||||||
| General and administrative | 889,502 | 877,140 | 2,927,690 | 2,512,785 | |||||||||
| Loss from operations | (1,791,492 | ) | (1,897,564 | ) | (5,758,719 | ) | (5,198,713 | ) | |||||
| Interest and other income | 5,384 | 13,815 | 49,287 | 261,487 | |||||||||
| Interest and other expense | (9,470 | ) | (134,011 | ) | (315,465 | ) | (414,843 | ) | |||||
| Foreign exchange (loss) gain | 11,634 | (13,432 | ) | 16,695 | (24,824 | ) | |||||||
| Loss and comprehensive loss for the period | (1,783,944 | ) | (2,031,192 | ) | (6,008,202 | ) | (5,376,893 | ) | |||||
| Basic and diluted loss per share | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.04 | ) | |||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241025
SOURCE: Burcon NutraScience Corporation
