Burcon Reports Fiscal 2022 Third Quarter Results

Vancouver, British Columbia,–(Newsfile Corp. – February 14, 2022) – Burcon NutraScience Company (TSX: BU) (NASDAQ: BRCN) (“Burcon or the “Firm”), a world know-how chief within the growth of plant-based proteins for meals and drinks, reported outcomes for the fiscal third quarter ended December 31, 2021.

Operational highlights for the third quarter ended December 31, 2021:

Throughout the quarter, Burcon:

• recorded a 41% quarter-over-quarter enhance in royalty revenues from its licensee, Advantage Practical Meals Company (“Advantage”);

• supported Advantage in finishing the commissioning of its first of its sort pea protein and canola protein manufacturing facility;

• superior Burcon’s pipeline of plant-based protein applied sciences by analysis and growth work at its Winnipeg Technical Centre;

• superior the due diligence course of and negotiations with a lot of present and new potential strategic companions on alternatives to commercialize Burcon’s revolutionary plant-based protein applied sciences; and

• obtained eight patents masking the corporate’s novel applied sciences for the extraction and purification of pulse, soy and canola oilseed protein components and the high-purity proteins produced therefrom. The corporate’s IP portfolio now consists of 307 issued patents in varied international locations, with 73 within the U.S., in addition to 215 lively patent purposes, together with 35 within the U.S.

Throughout the quarter, Advantage Meals:

• introduced that its first-of-its-kind pea and canola protein manufacturing facility in Winnipeg, Manitoba is totally scaled and commissioned;

• achieved the manufacturing output threshold – as outlined underneath the Amended and Restated License and Manufacturing Settlement with Burcon – for the Flex Manufacturing Facility to have attained commissioned standing;

• elevated manufacturing output to achieve over 80% of deliberate manufacturing capability;

• elevated manufacturing and gross sales of its best-in-class pea and canola protein components;

• obtained an extra $4.95 million fairness funding from its three way partnership companion, Bunge Restricted;

• obtained a co-investment from Protein Industries Canada to develop high-quality plant-based meat different merchandise utilizing its pea and canola protein components;

• achieved an AA rating with the British Retail Consortium (BRCGS) World Meals Security Certification, a number one international high quality and meals security program; and

• continued to develop its gross sales pipeline by an aggressive gross sales outreach program as a plant-based protein ingredient options supplier.

Story continues

Subsequent to quarter-end:

• Burcon introduced it would transition to a brand new president and CEO; and

• Burcon filed 5 further US patent purposes masking applied sciences for the manufacturing of sunflower seed protein and pulse protein components.

Administration Commentary

“Throughout our fiscal 2022 third quarter, Burcon’s group supported Advantage Practical Meals in resolving the ultimate challenges to the method of commissioning Advantage’s first-of-its-kind plant protein manufacturing facility,” stated Johann F. Tergesen, Burcon’s president and chief govt officer, including, “With commissioning of Part 1 full, Advantage’s flex manufacturing facility is now able to supplying main meals and beverage prospects with true commercial-scale portions of its highest purity pea and canola proteins. Advantage is on observe to realize manufacturing targets, which can in-turn help Advantage’s forecast for the sell-in part with its shopper packaged items (“CPG”) firm prospects. Advantage forecasts to achieve full allocation of its Part 1 capability by the tip of calendar 2022.”

Advantage’s protein gross sales elevated 41% quarter over quarter but stay disproportionately small in comparison with the potential manufacturing functionality of Advantage’s manufacturing facility. Throughout calendar 2021, Advantage’s focus was on finishing the commissioning course of, and making certain protein product high quality. As such, Advantage was ceaselessly occupied with incorporating processing modifications and reconfiguring its facility and was subsequently unable to supply product for supply to prospects. Nonetheless, within the final quarter, Advantage has labored with and supported the standard assurance and security audit groups of a lot of main CPG firms as a part of these entities’ procurement course of. As well as, Advantage continues to work intently with a whole bunch of CPG firms seeking to develop new ingredient options or reformulate present purposes utilizing Advantage’s revolutionary pea and canola protein components. Advantage’s gross sales prospects are encouraging, and we count on to see many extra shopper merchandise utilizing Advantage’s proteins to be out there on retailer cabinets this coming 12 months.

Throughout the previous quarter, our three way partnership companion, Bunge Restricted exercised its possibility underneath the Amended and Restated Unanimous Shareholders Settlement dated August 27, 2020, to speculate an extra $4.95 million into Advantage. Advantage additionally obtained an extra co-investment from Protein Industries Canada, amounting to one-half of the $7.6 million venture price of a brand new venture geared toward growing revolutionary plant-based meat different merchandise. Advantage’s companions within the venture embody Winecrush Know-how, Wamame Meals and Wismettac Asian Meals. The objective of the partnership is to develop and distribute all through Europe, Asia and North America, a line of meat options to pork and Wagyu beef. This is a wonderful alternative for Advantage to showcase the flexibility and useful capabilities of its high-purity pea and canola proteins in meat different purposes.

Throughout the quarter, Burcon continued discussions with potential three way partnership companions inquisitive about commercializing Burcon’s different revolutionary plant-based protein applied sciences. Burcon and its potential companions performed additional due diligence and carried out different actions in help of negotiating these potential partnerships in the course of the quarter. We’re assured our distinctive applied sciences for different protein sources, together with sunflower seed, hemp and oats, arising from Burcon’s core protein extraction know-how platform, produce useful differentiated protein ingredient options.

Burcon’s patent group continued to strengthen our already substantial mental property portfolio with the addition of eight patents this quarter. The patents cowl novel processes for the extraction and purification of protein components arising from pulse, soy and canola crops. Subsequent to quarter-end, Burcon filed 5 further US patent purposes to additional shield its high-value extraction applied sciences to supply protein from sunflower seed and pulse crops.

Subsequent to quarter-end, Burcon introduced that after co-founding Burcon greater than 23 years in the past, Johann Tergesen will likely be stepping down as its president and CEO efficient February 28, 2022. To make sure an orderly transition, he’ll proceed as an advisor to the corporate and Burcon’s board of administrators. Burcon has engaged an govt search agency specializing within the meals and agribusiness sectors, to help in recruiting a brand new chief govt officer.

Monetary Outcomes (in Canadian {dollars})

Royalty revenues from Advantage totaled $45,000 within the third quarter, as in comparison with $32,000 within the earlier quarter. The nominal royalty quantities mirror Advantage’s ongoing commissioning course of in the course of the interval.

Third quarter loss totaled $1.5 million or $0.01 per fundamental and diluted share. This compares to a lack of $1.1 million or $0.01 per fundamental and diluted share in the identical year-ago quarter. Following the funding by Bunge Restricted into Advantage in the course of the present quarter, Burcon recorded a dilution acquire of $961,000 on account of Burcon’s possession curiosity in Advantage reducing from 33.3% to 31.6%.

Advantage recorded gross sales revenues of $1.2 million in the course of the quarter, representing gross sales of pea and canola protein merchandise, in addition to gross sales of commodity objects and by-products.

Burcon recorded $1.2 million as its share of loss in Advantage Meals for the third quarter of fiscal 2022, as in comparison with $460,000 in the identical year-ago quarter. Advantage Meals’ loss displays its stage of growth because it continued to fee the flex manufacturing facility throughout this quarter.

Gross analysis and growth bills totaled $895,000 for the three months ended December 31, 2021, as in comparison with $604,000 in the identical year-ago quarter. The rise in R&D bills is due primarily to greater stock-based compensation expense, wage will increase and employees additions. The Firm started deferring canola and pea growth bills from the second quarter of fiscal 2020. Throughout the present quarter, Burcon allotted $623,000 of R&D prices to deferred growth prices. As Burcon’s pea and canola know-how that’s underneath license to Advantage is now able to working within the method meant by administration, Burcon will stop to the capitalization of prices to deferred prices associated to its pea and canola know-how and start amortization of the intangible asset as of January 1, 2022.

Gross mental property bills didn’t change considerably from the identical year-ago quarter. Throughout fiscal 2022 third quarter, Burcon allotted $192,000 of IP bills to deferred prices. As famous above, Burcon will stop to capitalize mental property bills associated to its pea and canola know-how and start amortization of the intangible asset from January 1, 2022.

Normal and administrative bills elevated by $431,000 for the present fiscal quarter as in comparison with the identical year-ago quarter. The rise is due primarily to greater stock-based compensation expense, employees additions, skilled charges, investor relations and insurance coverage bills.

At December 31, 2021, money balances totaled $9.4 million in comparison with $14.0 million at March 31, 2021. Administration believes it has enough sources to fund its anticipated stage of operations and dealing capital necessities to April 2023. This estimate doesn’t take note of potential proceeds from excellent convertible securities or royalty revenues from its license settlement.

Convention Name Particulars

Burcon will maintain an investor convention name and webcast on Monday, February 14, 2022 at 5:00pm ET.

A hyperlink to the webcast of the convention name will likely be out there on Burcon’s web site underneath “Displays” or instantly here. The webcast may even be archived for future playback.

Traders inquisitive about collaborating within the stay name can dial in utilizing the main points under:

Date: Monday February 14, 2022
Time: 5:00 p.m. Japanese time (2:00 p.m. Pacific time)
Toll-free dial-in (North America): 1-855-327-6837
Dial-in (toll/worldwide): 1-631-891-4304
Convention ID: 10017719

About Burcon NutraScience Company

Burcon is a world know-how chief within the growth of plant-based proteins for meals and drinks. With over 20 years of expertise formulating high-purity proteins which have superior performance, style and vitamin, Burcon has amassed an in depth patent portfolio masking its novel plant-based proteins derived from pea, canola, soy, hemp, sunflower seed, amongst different plant sources. In 2019, Advantage Practical Meals Company (“Advantage Meals”) was established between Burcon and three veteran meals business executives. Advantage Meals has since constructed a state-of-the-art protein manufacturing facility in Manitoba, Canada that’s producing, underneath license from Burcon, best-in-class pea and canola proteins for the meals and beverage industries. For extra info, go to www.burcon.ca.

Ahead-Trying Data Cautionary Assertion

The TSX has not reviewed and doesn’t settle for accountability for the adequacy of the content material of the data contained herein. This press launch comprises forward-looking statements or forward-looking info inside the that means of the U.S. Personal Securities Litigation Reform Act of 1995 and relevant Canadian securities laws. Ahead-looking statements or forward-looking info contain dangers, uncertainties and different elements that would trigger precise outcomes, performances, prospects and alternatives to vary materially from these expressed or implied by such forward-looking statements. Ahead-looking statements or forward-looking info might be recognized by phrases comparable to “anticipate,” “intend,” “plan,” “objective,” “venture,” “estimate,” “count on,” “imagine,” “future,” “doubtless,” “might,” “ought to,” “might,” “will” and related references to future durations. All statements included on this launch, apart from statements of historic reality, are forward-looking statements. There might be no assurance that such statements will show to be correct, and precise outcomes and future occasions might differ materially from these anticipated in such statements or info. Essential elements that would trigger precise outcomes to vary materially from Burcon’s plans and expectations hostile normal financial, market or enterprise situations; regulatory modifications; and different dangers and elements detailed herein and once in a while within the filings made by Burcon with securities regulators and inventory exchanges, together with within the part entitled “Threat Components” in Burcon’s annual info type for the 12 months ended March 31, 2021 and its different public filings with Canadian securities regulators on SEDAR at www.sedar.com and with the U.S. Securities and Change Fee on EDGAR at www.sec.gov. This checklist shouldn’t be exhaustive of the elements that will have an effect on any of the Firm’s forward-looking statements or info. Any forward-looking assertion or info speaks solely as of the date on which it was made, and, besides as could also be required by relevant securities legal guidelines, Burcon disclaims any intent or obligation to replace any forward-looking assertion, whether or not on account of new info, future occasions or in any other case. Though Burcon believes the assumptions inherent within the forward-looking statements are affordable, forward-looking statements should not ensures of future efficiency, and, accordingly, buyers mustn’t depend on such statements.

Trade Contact
Paul Lam
Supervisor, Enterprise Improvement and IRO
Burcon NutraScience Company
Tel (604) 733-0896, Toll-free (888) 408-7960
plam@burcon.ca www.burcon.ca

Investor Contact
James Carbonara
Hayden IR
Tel (646) 755-7412
james@haydenir.com

Media Contact:
Steve Campbell, APR
President
Campbell & Firm Public Relations
Tel (604) 888-5267
TECH@CCOM-PR.COM

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/release/113771