Burcon Reports Fiscal 2027 First Quarter Results, Advances Commercial Revenue Ramp
Rhea-AI Summary
Burcon NutraScience (OTCQB: BRCNF) reported fiscal 2027 first quarter revenue of $1.3 million for the three months ended June 30, 2026, up 273% year-over-year and 54% sequentially, driven by growing production and sales from its Galesburg plant-based protein facility.
The company recorded a net loss of $3.8 million or $0.30 per share versus a $3.5 million loss a year earlier, and used $2.4 million in operating cash. As of June 30, 2026, Burcon held $0.9 million in cash and had negative working capital of $11.2 million, largely due to a senior secured loan maturing December 17, 2026; $3.0 million remains undrawn on its second tranche.
To bolster liquidity, Burcon obtained a $1.4 million short-term related-party loan and announced a non-brokered private placement of convertible debentures for up to $8.1 million, bearing 15% annual interest and convertible at $1.60 per share or pre-funded warrant, subject to TSX and disinterested shareholder approval at the September 16, 2026 AGSM.
Positive
- Revenue $1.3 million, up 273% year-over-year and 54% sequentially in Q1 FY2027
- Operating cash outflow reduced to $2.4 million from $2.7 million year-over-year
- Undrawn loan capacity of $3.0 million on senior secured facility
- $1.4 million additional short-term funding from a related-party lender
- Announced up to $8.1 million in 15% convertible debentures, with insiders intending up to $5.91 million
Negative
- Net loss $3.8 million in Q1 FY2027, higher than $3.5 million prior year
- Cash balance $0.9 million and negative working capital of $11.2 million at June 30, 2026
- Senior secured loan classified current, maturing December 17, 2026
- Planned 15% convertible debentures imply high-cost debt and potential equity dilution at $1.60 conversion
- Increased loss attributed to scaling costs as operations expand
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Revenue of
Vancouver, British Columbia--(Newsfile Corp. - August 12, 2026) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in plant-based protein innovation, reported results for the three months ended June 30, 2026.
"Burcon generated a
Global demand for protein is accelerating as consumers require more protein intake on fewer calories, while supply constraints in competing protein categories are inflating ingredient costs. Plant-based proteins are an attractive alternative and Burcon's technology platform is adding value to food companies and consumers by supplying clean proteins that deliver superior functionality, flavor, and texture across numerous food and beverage applications.
Underwood continued, "We are pleased to announce our financing transactions, which expand Burcon's access to funding and simplify our capital structure. Most importantly, our enhanced liquidity is expected to support capacity investments we are making in response to the accelerating demand we are seeing from customers. We've proven our technology advantages at scale across multiple proteins and we are seeing that translate into repeat orders from customers who have validated Burcon products against their own demanding standards. We are in the early stage of a large market opportunity - one we believe we are positioned to capture as we leverage our proprietary processes across our expansion efforts at the Galesburg facility."
Financial Results (in Canadian dollars)
In the three months ended June 30, 2026, Burcon generated revenue of
The increase in revenue reflects continued growth in production and sales at the Galesburg production facility, while the increase in net loss primarily reflects costs associated with scaling operations.
As of June 30, 2026, Burcon had
For full details on the Company's financial results, refer to the condensed consolidated interim financial statements for the three months ended June 30, 2026 and management's discussion and analysis for such period filed on SEDAR+ at www.sedarplus.ca.
Short Term Loan
The Company has entered into a loan (the "Loan") of
The Loan is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Burcon is relying on the exemption available under Section 5.7(1)(a) of MI 61-101 from the minority shareholder approval requirement. Additionally, the Loan is exempt from the formal valuation requirement of MI 61-101 since it is a related party transaction under section (j) of the "related party transaction" definition of MI 61-101. The Loan was approved by the independent directors of the board of directors of Burcon, with the interested director abstaining from the vote.
Convertible Debentures
The Company is pleased to announce a non-brokered private placement of convertible debentures (the "Convertible Debentures") for an aggregate principal amount of up to
Each Convertible Debenture will have a principal amount of
At any time after the first anniversary of the issuance date of the Convertible Debentures, if the volume weighted average price of the Shares on the TSX (or such other stock exchange where the Shares principally trade) is above
The Convertible Debentures and the Shares issuable upon conversion of the Convertible Debentures will be subject to a four month and one day statutory resale restriction pursuant to applicable Canadian securities laws.
The Company intends to use the net proceeds from the Private Placement to (a) continue to accelerate growth through investments in: (i) inventory, labor and production capability and (ii) plan future infrastructure investments for capacity expansion in anticipation of accelerating customer demand; (b) improve production efficiency, including implementing maintenance programs and developing training programs for production labor; (c) partial repayment of the senior secured loan from Large Scale Investments Limited, an entity related to Alan Chan, a director of Burcon; (d) reduction of short term debt that may be advanced from insiders from time to time; and (e) for working capital requirements and other general corporate purposes. The proceeds from the Private Placement are expected to support Burcon's continued commercial scale-up and progress toward positive cash flow.
The Private Placement is expected to close as soon as possible after shareholder approval is obtained and is subject to execution of subscription agreements by the placees and to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX and disinterested shareholder approval.
The issuance of Convertible Debentures to insiders under the Private Placement will be considered a related party transaction under Multilateral Instrument 61-101. The Company will be relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 on the basis that the participation in the Private Placement by insiders does not exceed
The securities being offered under the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Conference Call Details
Burcon will hold an investor conference call and webcast on Wednesday August 12, 2026 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 August 12, 2026
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: 54552
About Burcon NutraScience Corporation
Burcon is a global technology leader in plant-based proteins for food and beverage applications. The Company has developed a portfolio of high-performance protein ingredients, including Peazzaz® pea proteins, FavaProTM fava proteins and Puratein® canola proteins, and is focused on commercializing its technologies through manufacturing partnerships and growing customer adoption worldwide.
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, 2026 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: Investor Relations and Communications Burcon NutraScience Corporation 490 - 999 West Broadway, Vancouver, BC, V5Z 1K5 Tel (604) 733-0896 info@burcon.ca www.burcon.ca | Media Contact: Steve Campbell, APR President Campbell & Company Public Relations Tel (604) 888-5267 TECH@CCOM-PR.COM |
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