Burcon Reports Fiscal 2025 Third Quarter Results

Rhea-AI Summary

Burcon NutraScience (TSX: BU) (OTCQB: BRCNF) reported its fiscal 2025 Q3 results, marking a transformative period with several key developments. The company formed an alliance with ProMan to acquire and operate a protein production facility, which is in final due diligence phase. Burcon generated $62,000 in revenues and reported a net loss of $1.8 million ($0.01 per share), compared to $2.0 million loss in the same period last year.

The company successfully closed a rights offering raising $9.43 million, exceeding their $7 million target for production, marketing, and sales initiatives. Burcon launched new products including next-generation Peazazz® pea protein, Puratein® canola protein, and Solatein™ sunflower protein isolate. The company has over 100 customers evaluating their proteins and expects to begin commercial scale production in the first half of 2025.

Positive

• Revenue generation of $62,000 compared to $0 in same quarter last year
• Successful rights offering raising $9.43 million, exceeding $7 million target
• Reduced net loss to $1.8M from $2.0M year-over-year
• Received $78,000 in funding from Protein Industries Canada

Negative

• Cash balance decreased to $0.6M from $4.2M at March 31, 2024
• Continued net losses of $1.8M in Q3

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

FAQ

What was Burcon's (BRCNF) revenue in Q3 fiscal 2025?

Burcon generated revenues of $62,000 in Q3 fiscal 2025, compared to zero revenues in the same quarter last year.

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

Burcon successfully raised gross proceeds of $9.43 million through its rights offering, exceeding their $7 million target.

What was Burcon's (BRCNF) net loss in Q3 fiscal 2025?

Burcon reported a net loss of $1.8 million or $0.01 per share in Q3 fiscal 2025.

When will Burcon (BRCNF) begin commercial scale production at its new facility?

Burcon expects to begin commercial scale production during the first half of calendar 2025.

What new products did Burcon (BRCNF) launch in Q3 fiscal 2025?

Burcon launched next-generation Peazazz® pea protein, Puratein® canola protein, and subsequently launched Solatein™ sunflower protein isolate.