Burcon Reports Fiscal 2013 Third Quarter Results

Burcon Reports Fiscal 2013 Third Quarter Results

VANCOUVER, British Columbia, Feb. 14, 2013 (GLOBE NEWSWIRE) -- Burcon
NutraScience Corporation (TSX:BU) (Nasdaq:BUR) ("Burcon") today reported
financial results for the three and nine months ended December 31, 2012. All
amounts are stated in Canadian dollars unless otherwise noted.

Selected highlights of the third quarter and period subsequent to quarter-end:

  *Completed equity offering of $5.75 million, with net proceeds of $5.0
    million;
  *Announced first commercial sale of CLARISOY^™ soy protein by ADM;
  *Commenced the building of Peazazz^™ pea protein semi-works production
    facility; and
  *Filed several patent applications over novel or alternative processes for
    the production and functional applications of its plant-based proteins.

Financial Review

In December 2012, ADM notified Burcon of the first bona fide arm's length sale
of CLARISOY^™ soy protein. Under the License and Production agreement with
ADM, the initial license fee payments cease at the end of the quarter that
immediately precedes the quarter in which the first bona fide arm's length
sale of CLARISOY^™ occurs; therefore, Burcon was not entitled to the fixed
quarterly payment from ADM for the quarter ended December 31, 2012. Burcon
recorded royalty revenue of about $7,000, comprising royalty revenue from
CLARISOY^™ sales and about $4,000 of initial license fee payments that were
previously deferred.

General and administrative expenses decreased by about $274,000 over the same
quarter last year.Included in salaries and benefits is stock-based
compensation expense of approximately $513,000 (2011 –$722,000).Burcon
recorded about $481,000 of stock-based compensation expense for options
granted to directors this quarter that vested.Similarly, Burcon recorded
about $540,000 in stock-based compensation expenses for options granted to
directors in the comparative quarter that also vested immediately.

Patent legal fees and expenses account for a significant portion of Burcon's
professional fees.Burcon's patent strategy is to aggressively seek protection
for new technologies as well as further protecting current
technologies.During the quarter, Burcon expensed about $266,000 (2011 -
$181,000, net of $179,000 capitalized to deferred development costs) of patent
costs.Total patent legal fees and expenditures (before capitalization)
decreased by about $94,000 over the prior period.More than one-half of the
decrease is attributable to more patents that entered national phase in this
quarter last year, which generated significant filing fees in various
countries.The balance of the decrease is due to lower patent maintenance
costs this quarter as Burcon is deferring annuity payments for certain
non-core patents and applications.From inception, Burcon has expended
approximately $8.4 million on patent legal fees and disbursements to
strengthen its patent portfolio in various countries of the world and for
filing patent applications for new inventions.

Investor relations expenses decreased by approximately $64,000, due mainly to
a decrease in U.S. public relations and investor relations costs of about
$40,000, as well as travel costs related to the NASDAQ listing in October 2011
of about $15,000.

Research and development expenses increased by about $124,000 over the
comparative quarter.Of the increase, about $133,000 related to the
amortization of deferred development costs that began in the second quarter of
this year.During this quarter last year, Burcon deferred a total of $145,000
of CLARISOY^™ development costs to deferred development costs.

At December 31, 2012, the Company's cash and short-term investment totaled
approximately $7.8 million, as compared to approximately $6.2 million at March
31, 2012.Management believes it has sufficient resources to fund its expected
level of operations and working capital requirements to at least May
2014.This estimate excludes any proceeds from outstanding convertible
securities and royalty revenues from ADM that may be derived from sales of
CLARISOY^™ soy protein.

Burcon had 31,624,693 common shares issued and outstanding as at December 31,
2012.

Conference Call

Burcon will host a conference call on Thursday, February 14, 2013 at 1:30 pm
Pacific time to discuss the results for the third quarter of fiscal 2013.The
Company's full financial statements and management's discussion and analysis
are available on its website at www.burcon.ca and on www.sedar.com.

To access the conference call by telephone dial 416-340-2217 or 1-866-696-5910
and enter the passcode 2008789.The conference call will be archived for
replay until Thursday, February 28, 2013, at midnight.To access the archived
conference call, dial 905-694-9451 or 1-800-408-3053 and enter the instant
replay passcode 6326950.

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 have developed
CLARISOY™ soy protein, which offers clarity and complete protein nutrition for
low pH beverage systems; Peazazz™ a uniquely soluble and clean-tasting pea
protein and Puratein®, Supertein™ and Nutratein™ canola protein isolates with
unique functional and nutritional attributes. Our team of highly specialized
scientists and engineers work from our private research facility to develop
and optimize environmentally sound technologies. To-date, our patent portfolio
consists of 218 issued patents in various countries, including 36 issued U.S.
patents, and in excess of 400 additional pending patent applications, 81 of
which are U.S. patent applications.

CLARISOY™ is under license from Archer Daniels Midland Company.

CLARISOY™ is a trademark of Archer Daniels Midland Company.

ON BEHALF OF THE BOARD OF DIRECTORS

"Johann F. Tergesen"

Johann F. Tergesen

President and Chief Operating Officer

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.
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. All statements other than
statements of historical fact included in this release are forward-looking
statements, including, without limitation, statements regarding 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. 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
actual results of marketing activities, adverse general economic, market or
business conditions, regulatory changes 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 dated June 25, 2012. Any
forward-looking statement or information only speaks 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 that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on such.

Burcon NutraScience Corporation                               
Condensed Consolidated Interim Balance Sheets                 
(Unaudited)
(Prepared in Canadian dollars)                                
                                                  December 31,  March 31,
                                                  2012          2012
                                                  $             $
Assets                                                        
                                                               
Current assets                                                
Cash and cash equivalents                        5,760,738    3,856,929
Restricted cash                                  --          361,600
Short-term investments                           2,078,317    2,301,961
Amounts receivable                               71,771       37,027
Prepaid expenses                                 127,952      117,991
                                                               
                                                  8,038,778    6,675,508
                                                               
Property and equipment                           536,465      626,488
                                                               
Deferred development costs -                                  
net of accumulated amortization of $266,812       1,956,623    1,969,172
(March 31, 2012 - $nil)
                                                               
Goodwill                                         1,254,930    1,254,930
                                                               
                                                  11,786,796   10,526,098
                                                               
Liabilities                                                   
                                                               
Current liabilities                                           
Accounts payable and accrued liabilities         385,760      916,652
                                                               
Deferred revenue                                 344,054      222,656
                                                               
                                                  729,814      1,139,308
                                                               
Shareholders' Equity                                          
                                                               
Capital stock                                    54,005,703   48,061,704
                                                               
Contributed surplus                              5,065,951    4,009,595
                                                               
Options                                          8,972,807    10,209,388
                                                               
Warrants                                         49,453       --
                                                               
Deficit                                          (57,036,932) (52,893,897)
                                                               
                                                  11,056,982   9,386,790
                                                               
                                                  11,786,796   10,526,098

                                                               
Burcon NutraScience Corporation                               
Condensed Consolidated Interim Statements of Operations and Comprehensive
Loss
(Unaudited)
(Prepared in Canadian                                          
dollars)
                       Three months ended December Nine months ended December
                        31,                         31,
                       2012          2011          2012          2011
                       $             $             $             $
Revenues                                                     
Royalty income        6,831        --          6,831        --
                                                              
Expenses                                                     
General and            1,207,909    1,482,259    2,728,027    4,253,265
administrative
Research and           572,180      447,575      1,481,485    731,772
development
                       1,780,089    1,929,834    4,209,512    4,985,037
                                                              
Loss from operations  (1,773,258)  (1,929,834)  (4,202,681)  (4,985,037)
                                                              
Interest and other     18,988       32,380       59,646       111,330
income
                                                              
Loss and
comprehensiveloss for  (1,754,270)  (1,897,454)  (4,143,035)  (4,873,707)
the period
                                                              
Basic and diluted loss (0.057)      (0.063)      (0.137)      (0.163)
per share



Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited)
For the nine months ended December 31, 2012 and 2011
(Prepared in                                                                          
Canadian dollars)
                    Number of
                    Fully Paid
                    Common
                    Shares                                                                  Total
                   (Unlimited  Capital     Contributed Options      Warrants Deficit       shareholders'
                    number      stock       surplus                                         equity
                    of common
                    shares
                    without par
                    value)
                              $           $           $            $        $             $
                                                                                     
Balance, March 31,  29,805,557 47,158,758 3,762,983  8,915,059   --     (46,931,555) 12,905,245
2011
                                                                                     
Loss and
comprehensive       --        --        --        --         --     (4,873,707)  (4,873,707)
lossfor the
period
                                                                                     
Issued during the                                                                     
period for cash
Optionsexercised 185,517    537,724    --        --         --     --          537,724
                                                                                     
Transferred from
options on          --        354,781    --        (354,781)   --     --          --
exerciseof
options
                                                                                     
Unexercised vested  --        --        246,612    (246,612)                        
options
                                                                                     
Options granted    --        --        --        1,886,564   --     --          1,886,564
                                                                                     
Balance, December   29,991,074 48,051,263 4,009,595  10,200,230  --     (51,805,262) 10,455,826
31, 2011
                                                                                     
Balance, March 31,  29,993,074 48,061,704 4,009,595  10,209,388  --     (52,893,897) 9,386,790
2012
                                                                                     
Loss and
comprehensive       --        --        --        --         --     (4,143,035)  (4,143,035)
lossfor the
period
                                                                                     
Issued during the                                                                     
period for cash
Equity offering    1,437,500  5,750,000  --        --         --     --          5,750,000
Share issue costs  --        (756,998)  --        --         --     --          (756,998)
Options exercised  194,119    273,901    --        --         --     --          273,901
                                                                                     
Agents' warrants   --        (49,453)   --        --         49,453  --          --
                                                                                     
Transferred from
options on exercise --        726,549    --        (726,549)   --     --          --
of options
                                                                                     
Unexercised vested  --        --        1,056,356  (1,056,356) --     --          --
options
                                                                                     
Options granted    --        --        --        546,324     --     --          546,324
                                                                                     
Balance, December   31,624,693 54,005,703 5,065,951  8,972,807   49,453  (57,036,932) 11,056,982
31, 2012

                                                             
                                                             
Burcon NutraScience Corporation                              
Condensed Consolidated Interim Statements of Cash Flows       
(Unaudited)                                                  
For the nine months ended December 31, 2012 and 2011
(Prepared in Canadian dollars)                               
                                                 2012         2011
                                                 $            $
Cash flows from operating activities                         
Loss for the year                                (4,143,035) (4,873,707)
Items not affecting cash                                     
Amortization of deferred development costs       266,812     --
Amortizaion of property and equipment            105,371     68,266
Gain on disposal of property and equipment       --         (3,358)
Stock-based compensation expense                 546,324     1,703,062
                                                 (3,224,528) (3,105,737)
Changes in non-cash working capital items                    
Amounts receivable                               (34,744)    (102,291)
Prepaid expenses                                 (9,961)     (4,686)
Accounts payable and accrued liabilities         (530,892)   (551,580)
Deferred revenue                                 121,398     163,446
                                                 (3,678,727) (3,600,848)
Cash flows from investing activities                         
Decrease in short-term investments               223,644     2,499
Decrease (increase) in restricted cash           361,600     (368,620)
Acquisition of property and equipment            (21,914)    (69,584)
Development costs deferred                       (247,697)   (1,154,870)
Proceeds from disposal of property and equipment --         3,745
                                                 315,633     (1,586,830)
Cash flows from financing activities                         
Issue of capital stock                           6,023,901   537,724
Share issue costs                                (756,998)   --
                                                 5,266,903   537,724
                                                             
Increase (decrease) in cash and cash equivalents 1,903,809   (4,649,954)
                                                             
Cash and cash equivalents - Beginning of year    3,856,929   9,628,020
                                                             
Cash and cash equivalents - End of year          5,760,738   4,978,066
                                                             
Cash and cash equivalents consist of                         
Cash                                             5,760,738   4,915,544
Cash equivalents                                 --         62,522
                                                 5,760,738   4,978,066
                                                             
Supplemental disclosure of non-cash investing and financing activities
Charged to deferred development costs:                       
Stock-based compensation                         --         183,502
Amortization of property and equipment           6,566       66,665
Warrants issued during the period                49,453      --

CONTACT: Michael Kirwan, Director, Corporate Development
         Burcon NutraScience Corporation
         (604) 733-0896 / (888) 408-7960 toll-free
         mkirwan@burcon.ca www.burcon.ca
 
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