Vancouver, British Columbia, June 18, 2009 — Burcon NutraScience Corporation (TSX –BU) (“Burcon” or the “Corporation”) is pleased to announce that it has completed its previously announced financing led by Paradigm Capital Inc., and including BMO Capital Markets and Haywood Securities Inc. (collectively, the “Agents”). The Corporation issued an aggregate of 2,942,950 common shares (including 333,950 common shares pursuant to the partial exercise of the Agents’ over-allotment option) at a price of $5.75 per share for gross proceeds of approximately $16.9 million (the “Offering”). In addition, Burcon’s common shares will now be
listed on the Toronto Stock Exchange (the “TSX”).
The net proceeds of the Offering will be used for continued research and development of Burcon’s soy protein isolate extraction and purification technology (CLARISOY™), further refining of Burcon’s canola protein isolate extraction and purification technology (Puratein® and Supertein™), filing new patent applications and expanding Burcon’s intellectual property portfolio, and for general working capital purposes, all as more particularly set out in Burcon’s final prospectus dated June 10, 2009.
“We are pleased with the strong response from our new institutional shareholders, particularly at a time when access to capital remains difficult. The completion of this financing serves as a validation of the potential of our products and technologies,” said Johann F. Tergesen, President and Chief Operating Officer, adding, “This financing greatly strengthens Burcon's balance sheet, providing important flexibility to entertain a broad range of potential strategic alliances arising from our recently announced soy protein isolate technology and CLARISOY™.”
The Agents received a commission equal to 6% of the gross proceeds of the Offering and compensation options entitling the Agents to purchase up to 117,718 common shares (equal to 4% of the common shares sold pursuant to the Offering). Each compensation option is exercisable to acquire one common share of the Corporation at an exercise price of $5.75 per share at any time before and including December 18, 2010.
On June 1, 2009, the TSX conditionally approved the Corporation's application for listing its common shares on the TSX. Listing of the Corporation’s common shares was subject to fulfilling all of the listing requirements of the TSX by August 28, 2009, including raising gross proceeds of $10 million. With the closing of today’s financing those requirements have now been met. The common shares of the Corporation have now been listed and posted for trading on the TSX under the symbol “BU”.
About Burcon NutraScience
Burcon is a leader in nutrition, health and wellness in the field of functional, renewable plant proteins. Since 1999, Burcon has developed a portfolio of composition, application, and process patents originating from our core protein extraction and purification technology. We are developing the world's first commercial canola proteins, Puratein® and Supertein™ with unique functional and nutritional attributes, and Clarisoy™, a revolutionary soy protein isolate which is 100% soluble and completely transparent in acidic solutions. Our team of highly specialized scientists and engineers work from our own research facility to develop and optimize environmentally sound technologies. To-date, our patent portfolio consists of 84 issued patents in various countries,
patent applications, 55 of which are U.S. patent applications.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.
ON BEHALF OF THE BOARD OF DIRECTORS
“Johann F. Tergesen”
Johann F. Tergesen
President and Chief Operating Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the Corporation’s proposed offering and use of proceeds, the proposed listing of the Corporation’s common shares on the TSX, plans and timing for the introduction or enhancement of our products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations
development. When used in this press release, the words “goal”, “intend”, “believes”, “potential”, “expected”, “anticipates”, “will be”, “TSX listing” and “completion of the offering” and similar expressions, generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties. In light of the many risks and uncertainties surrounding the development of a source of protein from canola meal, you should understand that we cannot assure you that the forward looking statements contained in this press release will be realized.
For more information, please contact:
Jade Cheng, Chief Financial Officer
Burcon NutraScience Corporation
(604) 733-0896 / (888) 408-7960 toll-free
jcheng@burcon.ca www.burcon.ca
AXINO AG
Wolfgang Seybold, Investor Relations Europe
AXINO AG, Königstraße 26, 70173 Stuttgart, Germany
Tel. +49-711-25 35 92-40 / Fax +49-711-25 35 92-55
wolfgang.seybold@axino.de www.burcon.net