Burcon Enters into $6.8 Million Multi-Year Production Agreement

Rhea-AI Summary

Burcon NutraScience Corporation (BRCNF) has secured a significant multi-year production agreement worth $6.8 million with a leading provider of clean label, plant-based ingredients. The agreement will generate minimum annual revenue of $1.4 million in the first year, with production already initiated in the current quarter and expected to scale up in the latter half of 2025. CEO Kip Underwood highlighted this as a major step toward profitability, supporting the company's 2025 revenue targets. The contract manufacturing services at Burcon's Galesburg facility represent a strategic move to diversify revenue streams while delivering plant-based solutions to customers.

Positive

• Secured $6.8 million multi-year production agreement
• Guaranteed minimum annual revenue of $1.4 million starting first year
• Production already initiated with scaling expected in latter half of 2025
• Strategic expansion into contract manufacturing services for additional revenue stream

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - June 17, 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 that it has entered into a multi-year agreement valued at approximately $6.8 million in aggregate to produce for a leading provider of clean label, plant-based ingredients.

"We're pleased to secure a significant revenue stream using the production capabilities of the Galesburg facility," said Kip Underwood, Burcon's chief executive officer. "This agreement represents a major step in Burcon's road to profitability and supports our revenue target for calendar 2025. We look forward to building a long and successful relationship with this customer."

Pursuant to the terms of the agreement, production volumes in the first year are expected to generate a minimum of $1,400,000 in revenue for Burcon and continue annually in subsequent years. Initial production began in the current quarter and expected to increase as production scales in the latter half of the year.

This agreement marks a significant advancement in Burcon's business strategy by allowing it to generate meaningful revenue from its manufacturing capabilities. Burcon's commercial contract manufacturing services provide an additional source of revenue and align with its strategic imperatives to connect with customers and end markets, while delivering high-quality plant-based solutions to its customers.

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/255793

FAQ

What is the value of Burcon's (BRCNF) new production agreement in 2025?

Burcon secured a multi-year production agreement valued at approximately $6.8 million in aggregate

How much minimum revenue will Burcon generate in the first year of the production agreement?

The agreement will generate a minimum of $1.4 million in revenue for Burcon in the first year

When will Burcon (BRCNF) begin production under the new agreement?

Production has already begun in the current quarter and is expected to scale up in the latter half of 2025

Who is Burcon's new production agreement partner?

The agreement is with a leading provider of clean label, plant-based ingredients, though the specific company name was not disclosed

What facility will Burcon use for the new production agreement?

The production will take place at Burcon's Galesburg facility