Burcon Announces Completion of $9.43 Million Rights Offering

Rhea-AI Summary

Burcon NutraScience has successfully completed its rights offering, raising approximately $9.43 million through the issuance of 110,986,126 Common shares at $0.085 per share. The Rights Offering, which expired on February 12, 2025, exceeded the company's target of $7 million needed to execute its production plan and achieve positive cash flow by calendar 2026.

The company, a global technology leader in plant-based protein development, is currently working with its transfer agent to calculate the amounts exercised under the basic subscription privilege and additional subscription privilege. Further details, including information required by National Instrument 45-106, will be provided once available.

Burcon has registered the offer and sale of shares on a Form F-7 registration statement under the U.S. Securities Act of 1933. The company has also scheduled a virtual investor presentation for February 18, 2025, at 5:00 p.m. Eastern time.

Positive

• Raised $9.43 million, exceeding $7 million target
• On track for positive cash flow by 2026

Negative

• Significant shareholder dilution through issuance of 110,986,126 new shares

Vancouver, British Columbia--(Newsfile Corp. - February 13, 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, is pleased to announce the completion of its rights offering (the "Rights Offering"), which expired at 5:00pm (EST) on February 12, 2025. The Rights Offering will result in the issuance of 110,986,126 Common shares of Burcon ("Common Shares") at a price of $0.085 per share for gross proceeds of approximately $9.43 million.

“We are pleased to successfully close our rights offering, securing well above the $7MM we needed to execute our production plan and target positive cash flow in calendar 2026,” said Kip Underwood, Burcon’s chief executive officer. “We sincerely appreciate our shareholders’ trust and confidence, as we build a market-leading protein innovation company.”

Burcon is working with its transfer agent to calculate the amounts exercised under the basic subscription privilege and the additional subscription privilege in connection with the Rights Offering and will provide further details, including information required by National Instrument 45-106 - Prospectus Exemptions, once available.

The Company registered the offer and sale of the shares issuable on exercise of the Rights on a Form F-7 registration statement under the U.S. Securities Act of 1933, as amended, which has been filed with the United States Securities and Exchange Commission and can be found at www.sec.gov and may also be obtained by contacting the Corporate Secretary by email at dlaw@burcon.ca. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein. There shall be no offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the laws of any such jurisdiction.

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. 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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240643

FAQ

How much did Burcon (BRCNF) raise in its February 2025 rights offering?

Burcon raised approximately $9.43 million through its rights offering, exceeding its $7 million target.

What is the price per share for Burcon's (BRCNF) 2025 rights offering?

The rights offering price was set at $0.085 per common share.

How many new shares did Burcon (BRCNF) issue in its 2025 rights offering?

Burcon issued 110,986,126 new common shares through the rights offering.

When does Burcon (BRCNF) expect to achieve positive cash flow?

Burcon expects to achieve positive cash flow in calendar year 2026.

When did Burcon's (BRCNF) 2025 rights offering expire?

The rights offering expired on February 12, 2025, at 5:00pm (EST).