Burcon Achieves First Commercial Production of Pea Protein
- Successful launch of commercial pea protein production at Galesburg facility
- Revenue projection of $1-3M for 2025 and $10M+ for 2026
- Positive cash flow expected by 2026
- Strategic 20:1 share consolidation to improve marketability and attract investors
- Share consolidation may indicate previous stock price challenges
- Revenue generation still in early stages with modest 2025 projections
- Several months needed before reaching significant production scale
Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in plant-based protein innovation, is pleased to announce the successful first commercial production run of its next-generation Peazazz®C pea protein at its Galesburg facility in Illinois, USA.
"The successful startup of our Galesburg facility marks a key operational milestone in Burcon's commercial scale-up," said Kip Underwood, Burcon's chief executive officer. "In less than 90 days since commissioning, our team has brought next-generation protein production online, enabling us to meet accelerating customer demand and unlock scalable revenue opportunities."
Burcon remains on track to achieve key operational and financial milestones through 2025/2026. The Company anticipates the following revenue targets:
$1 -3 million in revenue for calendar year 2025$10 + million in revenue for calendar year 2026Positive cash flow projected to be achieved in calendar year 2026
With commercial production now underway and ramping through the second half of 2025, Burcon is actively progressing customer supply agreements that will support long-term recurring revenue. The Galesburg facility provides meaningful capacity to scale production and positions the Company to execute its growth plan, expand market penetration, and drive long-term enterprise value.
Share Consolidation
Burcon announces it has consolidated its issued and outstanding common shares (the "Shares") at a ratio of twenty (20) pre-consolidation Shares to one (1) post-consolidation share (the "Consolidation").
The Shares are expected to commence trading on the TSX on a post-Consolidation basis at the start of trading on June 11, 2025. The Company's name and trading symbol will remain the same after the Consolidation.
Peter H. Kappel, Burcon's Chairman of the board commented: "We are confidently advancing our strategic plan, and the Consolidation marks a key step in optimizing our capital structure and unlocking long-term value for shareholders. This initiative is designed to attract new investors, improve the marketability of our common shares, and position Burcon for future growth."
The Consolidation has been approved by the board of directors of Burcon (the "Board") and by shareholders of the Company (the "Shareholders") pursuant to the share consolidation authorizing resolution approved at the Company's most recent annual general and special meeting of Shareholders held on September 18, 2024. As discussed in greater detail in the management information circular of the Company dated August 1, 2024, the Board believes that implementing the Consolidation is in the best interests of the Company as it could lead to increased interest by a wider audience of potential investors and result in less volatility resulting in a more efficient market for the Common Shares. The Board also regularly evaluates other opportunities to increase the Company's access to capital markets and the Consolidation could allow the Company to access other exchanges that have minimum listing requirements.
No fractional Shares will be issued under the Consolidation. The holdings of any Shareholder who would otherwise be entitled to receive a fractional Share as a result of the Consolidation shall be rounded up to the next higher whole number if the fraction is 0.5 or greater and rounded down to the next lower whole number if the fraction is less than 0.5. The Consolidation will not affect any Shareholder's percentage ownership in the Company other than by the minimal effect of the aforementioned elimination of fractional Shares, even though such ownership will be represented by a smaller number of Shares. Instead, the Consolidation will reduce proportionately the number of Shares held by all Shareholders. There were 253,761,444 common shares of Burcon outstanding prior to the Consolidation.
Shareholders who hold uncertificated Shares (including Shares held through a brokerage account and/or not represented by a physical share certificate), will have their holdings electronically adjusted by the Company's transfer agent or by their brokerage firms, banks, trust or other nominees. Such Shareholders do not need to take any additional actions to exchange their pre-Consolidation Shares for post-Consolidation Shares. Letters of transmittal are being mailed to all registered Shareholders holding share certificates with instructions on how to exchange existing share certificate(s) for new share certificate(s). A copy of the letter of transmittal will also be available on the Company's profile on SEDAR+.
The Company's new CUSIP number for the post-Consolidation Shares will be 120831300 and its new ISIN number is CA1208313009.
The exercise price and number of Common Shares issuable upon the exercise of Burcon's outstanding warrants will be proportionately adjusted to reflect the Consolidation in accordance with the terms of such securities.
About Burcon NutraScience Corporation
Burcon is a global technology leader in high-performance plant-based proteins for the food and beverage industry. Our commercial ingredients offer superior taste, texture, and functionality-ideal for formulators seeking next-generation protein solutions. Backed by over two decades of innovation, Burcon holds an extensive patent portfolio covering novel proteins derived from pea, canola, soy, hemp, sunflower, and other plant sources. As a key player in the rapidly growing plant-based market, Burcon is committed to sustainability and to creating best-in-class protein solutions that are better for people and the planet. Learn more at 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
490 - 999 West Broadway, Vancouver, BC, V5Z 1K5
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/254863
FAQ
What are Burcon's (BRCNF) revenue projections for 2025 and 2026?
What is the ratio of Burcon's share consolidation and when is it effective?
What product has Burcon started producing at its Galesburg facility?
When does Burcon (BRCNF) expect to achieve positive cash flow?
How will Burcon's share consolidation affect shareholders?
