Burcon Announces Fiscal 2024 Results and Reviews Operations
Burcon NutraScience reported its fiscal 2024 results, highlighting significant milestones including scaled commercial production of the world's first 95% hempseed protein isolate and a $40 billion addressable market for its high-purity protein ingredients. The company recorded a net loss of $7.5 million, a significant reduction from the previous year's $25.4 million loss, attributed to the write-off related to Merit Functional Foods Operational expenses decreased by $686,000, with notable reductions in R&D and G&A expenses. Additionally, Burcon raised $7.8 million through private placements and secured a $5 million loan tranche. The company is set to increase production and sales to meet growing customer demand.
- Scaled commercial production of world's first 95% hempseed protein isolate.
- Validated strong customer demand exceeding expectations.
- Achieved first commercial sales of high-purity hempseed protein isolate.
- Reduced net loss to $7.5 million from $25.4 million.
- Decreased operating expenses by $686,000.
- Raised $7.8 million via private placements and secured $5 million loan tranche.
- Received $6.9 million project co-investment from Protein Industries Canada.
- Expanded US investor outreach with OTCQB Venture Market trading.
- Recorded a net loss of $7.5 million.
- Received reduced royalty income of $184,000 compared to $364,000 the previous year.
Vancouver, British Columbia--(Newsfile Corp. - June 26, 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 year ended March 31, 2024.
"Fiscal 2024 was an incredible turnaround year for Burcon. We cleared a number of key milestones in our revised business plan. The Company is in an excellent position to produce and sell its best-in-class protein ingredients, generate revenues, and capture value for our shareholders," said Kip Underwood, Burcon's chief executive officer. "We believe our market-disrupting, high purity plant proteins can enable the creation of great-tasting, healthy and sustainable products that consumers demand. We are thrilled to ramp up production and sales to meet the growing customer demand as we tap into a
Fiscal 2024 Operational Highlights
Burcon's focus for fiscal 2024 was to reposition the Company for success, which included revising its strategy, developing and funding a solid business plan, and executing against those business plan goals.
During fiscal 2024, Burcon:
- scaled commercial production of the world's first
95% hempseed protein isolate; - validated customer demand for its protein products, which exceeded all initial expectations;
- established commercial production capabilities via integration of proprietary processing equipment at its partner manufacturer's facility;
- entered into production agreement with its partner manufacturer;
- partnered with HPS Food and Ingredients and launched the world's first high purity, hempseed protein isolate;
- showcased its high purity,
95% hempseed protein isolate at major food ingredient tradeshows; - successfully raised total proceeds of
$7.8 million via two separate non-brokered private placements; - entered into an agreement to access second
$5 million tranche of the$10 million loan from its largest shareholder; and - received co-investment from Protein Industries Canada for
$6.9 million project to scale up hempseed and sunflower seed proteins.
Subsequent to the year-end, Burcon:
- achieved first commercial sales of world's first high purity hempseed protein isolate;
- launched high purity, nutritionally complete canola protein to tap into additional markets;
- expanded US investor outreach with trading of shares on OTCQB Venture Market; and
- tapped into a new revenue stream through contract research services.
Management Commentary
In Fiscal 2024, Burcon achieved several foundational milestones that are paving the way for our next growth phase—commercial production and sales. Our key accomplishments include establishing capital-light manufacturing capabilities, commencing commercial production and sales of the world's first high-purity hempseed protein isolate, and identifying and validating customer demand for our protein products, surpassing business plan expectations. Through a combination of equity financings, non-dilutive debt, government assistance, and anticipated recurring protein sales, we believe we have a fully funded business plan to achieve positive cash flow. Burcon is well-positioned to seize upcoming opportunities and become a market-leading plant protein innovation company.
We executed our first proof point and successfully launched the world's first hempseed protein isolate, from concept to commercial sales, within nine months. Additionally, we brought online commercial production capabilities within three months of integrating Burcon's proprietary process equipment at our partner manufacturer's facility. With our production supply chain established, we are ready to market Burcon's portfolio of differentiated, high-purity plant-based protein ingredients. We look forward to ramping up hemp protein production to meet the strong customer demand.
We are encouraged by the market's reception to our protein products, which have received exceptional feedback. Our
We strengthened our cash position through two equity financings, non-dilutive debt, and government assistance. By diligently managing our cash resources, we reduced operational expenses by
Looking ahead, we are excited about generating revenue, ramping up hemp protein production, achieving commercial success with our canola protein, and executing additional proof points on our path to profitability. We firmly believe 2024 was a transformative year for Burcon, and we look forward to continuing to report our achievements in the coming year.
Financial Results (in Canadian dollars)
During fiscal 2024, Burcon recorded
Burcon reported a net loss of
Total operating expenses for fiscal 2024 decreased by
General and administrative expenses were
During fiscal 2024, Burcon recorded funding from Protein Industries Canada ("PIC") of approximately
Cash and liquidity
During this fiscal year, Burcon completed two non-brokered private placements for gross and net proceeds of
As at March 31, 2024, the Company had approximately
Conference Call Details
Burcon will hold an investor conference call and webcast on Wednesday, June 26, 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 June 26, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in (North America): 1-877-704-4453
Dial-in (toll/international): 1-201-389-0920
Conference ID: 13746587
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 | ||||||
| Consolidated Statements of Financial Position | ||||||
| As at March 31, 2024 and March 31, 2023 | ||||||
| (In Canadian dollars) | ||||||
| March 31, 2024 | March 31, 2023 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash | 4,197,141 | 1,456,845 | ||||
| Amounts receivable and other receivables | 591,726 | 332,118 | ||||
| Inventory | 68,319 | - | ||||
| Prepaid expenses | 330,033 | 75,902 | ||||
| 5,187,219 | 1,864,865 | |||||
| Property and equipment | 1,096,273 | 983,924 | ||||
| Deferred development costs | 5,374,149 | 5,795,650 | ||||
| Investment in and loans to Merit Functional Foods Corporation | - | - | ||||
| Goodwill | 1,254,930 | 1,254,930 | ||||
| 12,912,571 | 9,899,369 | |||||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 843,449 | 590,936 | ||||
| Current portion of lease liabilities | 260,845 | 34,431 | ||||
| Deferred government assistance | 250,000 | - | ||||
| 1,354,294 | 625,367 | |||||
| Secured loan | 6,404,778 | 5,112,381 | ||||
| Lease liabilities | - | 24,310 | ||||
| 7,759,072 | 5,762,058 | |||||
| SHAREHOLDERS' EQUITY | ||||||
| Capital stock | 122,069,825 | 114,566,577 | ||||
| Contributed surplus | 17,283,934 | 16,763,830 | ||||
| Options | 7,436,262 | 7,279,559 | ||||
| Warrants | 237,201 | - | ||||
| Restricted share units | 172,776 | 127,651 | ||||
| Deficit | (142,046,499 | ) | (134,600,306 | ) | ||
| 5,153,499 | 4,137,311 | |||||
| 12,912,571 | 9,899,369 |
| BURCON NUTRASCIENCE CORPORATION | ||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||
| Years ended March 31, 2024 and 2023 | ||||||
| (In Canadian dollars) | ||||||
| 2024 | 2023 | |||||
| REVENUE | ||||||
| Royalty income | 184,359 | 363,913 | ||||
| EXPENSES | ||||||
| Research and development | 3,578,757 | 4,125,149 | ||||
| General and administrative | 3,624,577 | 3,764,034 | ||||
| 7,203,334 | 7,889,183 | |||||
| LOSS FROM OPERATIONS | (7,018,975 | ) | (7,525,270 | ) | ||
| INTEREST AND OTHER INCOME | 88,366 | 470,021 | ||||
| SHARE OF LOSS IN MERIT FUNCTIONAL FOODS CORPORATION | - | (5,499,906 | ) | |||
| WRITE-OFF OF INVESTMENT IN MERIT FUNCTIONAL FOODS CORPORATION | - | (7,987,304 | ) | |||
| WRITE-OFF OF LOAN TO MERIT FUNCTIONAL FOODS CORPORATION | - | (4,358,630 | ) | |||
| INTEREST AND OTHER EXPENSE | (511,585 | ) | (466,290 | ) | ||
| FOREIGN EXCHANGE (LOSS) GAIN | (3,999 | ) | 3,129 | |||
| LOSS AND COMPREHENSIVE LOSS FOR THE YEAR | (7,446,193 | ) | (25,364,250 | ) | ||
| BASIC AND DILUTED LOSS PER SHARE | (0.06 | ) | (0.23 | ) |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214486
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