Burcon Reports Fiscal 2014 First Quarter Results
VANCOUVER, British Columbia, Aug. 13, 2013 (GLOBE NEWSWIRE) -- Burcon
NutraScience Corporation (TSX:BU) (Nasdaq:BUR), a leader in functional,
renewable plant proteins, reported results for the fiscal first quarter ended
June 30, 2013.
Fiscal 2014 Q1 Operational Highlights
*Burcon advanced the commercial roll-out of Peazazz®, its revolutionary
protein derived from field peas, by signing material transfer agreements
(MTAs) with a variety of interested parties, including major food and
beverage makers, suppliers, and potential industry production and sales
*Completed the construction of the Peazazz semi-works production plant to
provide the large quantities of Peazazz required by customers and
potential partners for evaluation and product development, as well as to
demonstrate production from scalable, commercial-level manufacturing
equipment. Subsequent to the end of the quarter, the Company's engineers
completed the plant's startup and commissioning phase, allowing it to
begin producing sample quantities for shipment to interested parties
signed under MTAs.
*Burcon's manufacturing and marketing partner for CLARISOY™ soy protein,
Archer Daniels Midland Company (ADM), continued to facilitate development
activities in the global food and beverage market, as they operate the
first commercial-scale plant for CLARISOY production.
*The Canadian Institute of Food Science and Technology (CIFST) recognized
the development and introduction of CLARISOY as a "significant innovation"
with its 2013 Food Innovation Award, and highlighted CLARISOY as the
world's first vegetable-based protein that offers clarity and high quality
protein nutrition in low pH food systems. In issuing the award to the
dedicated CLARISOY team at ADM, the CIFST noted that CLARISOY has "a
combination of functional properties, neutral flavor and high nutritional
value that is unlike anything else on the plant protein market today." It
further stated that "CLARISOY offers processing and sensory advantages
over traditional isolated soy proteins in the fast growing beverage
categories of sports drinks, fruit juice blends, powdered mixes, fortified
waters and meal replacers." This is the second major industry award for
CLARISOY after winning the InterBev 'Best Beverage Ingredient Concept'
award in 2012.
*During the quarter, Burcon was granted three U.S. patents covering
processes for extracting plant protein, one for soy and two for canola.
Subsequent to the end of the quarter, the Company received another two
process patents, one for soy and another for canola. These new patents
increase the Company's IP portfolio to 245 issued patents in various
countries, including 43 in the U.S., as well as more than 425 active
patent applications, including 86 additional U.S. patent applications.
"The first quarter of fiscal 2014 represented strong progress in
commercializing Burcon's unique plant protein extraction technologies, as well
as further developing and protecting this valuable IP," said Johann Tergesen,
president and chief operating officer. "This included the completion of our
Peazazz semi-works facility which coincided with our launch of Peazazz at the
2013 Institute of Food Technologists Annual Meeting and Food Expo, where it
was well-received by major food and beverage makers as well as potential
alliance partners. With the completion of the semi-works plant, we are now in
a position to provide market development quantities of Peazazz to these
"We were also very pleased to see ADM again feature CLARISOY 100 at the IFT
Expo in a fruit juice blend featuring seven grams of protein. ADM has further
expanded their CLARISOY product line, introducing CLARISOY 120 in a powdered
mix prototype called 'Pineapple Shakeup.'
"Our continued efforts to expand and protect our intellectual property
portfolio have proven effective.So far in calendar 2013, we've been awarded
eight new U.S. patents that strengthen the intellectual property portfolio
around our proprietary plant protein science. Our efforts to protect this
valuable IP will continue to be a major area of focus, as will our pursuit of
further perfecting the science that makes our proteins already so exceptional.
"In all, it's clear our market timing couldn't be more ideal, with industry
publications featuring virtually daily mentions of newly reformulated product
launches that include protein, or new processed food products that are
"We believe these powerful market trends along with our accomplishments in Q1
will set Burcon on a strong course for the remainder of the fiscal year. The
market opportunities we see ahead are supported by the award-winning value
proposition of our patented and proprietary protein technology, as well as the
extraordinary quality of the potential customers and potential partners with
whom we are currently engaged. Fiscal 2014 is coming into focus as the year
Burcon emerges from its development stage and begins the commercial phase of
Fiscal 2014 First Quarter Financial Results (Dollars in Canadian)
Revenues totaled $23,900 in the first fiscal quarter of 2014, as compared to
$23,500 in the prior quarter, and none in the same year-ago quarter. The
marginal revenues were derived primarily from deferred royalty payments from
ADM for CLARISOY that were recognized in the quarter, and reflect the
beginning of the company's transitionto the commercial introduction of its
proprietary plant proteins.
While ADM reported its first commercial sale of CLARISOY from its semi-works
facility in December 2012, suggesting CLARISOY commercialization would expand
in calendar 2013, the subsequent royalty revenues from CLARISOY sales have
been marginal due to lengthy product development cycles typical of major
brands in the food and beverage industry.
First quarter net loss totaled $1.6 million or $(0.05) per basic and diluted
share, as compared to a net loss of $1.4 million or $(0.04) per basic and
diluted share in prior quarter, and a net loss of $1.0 million or $(0.04) per
basic and diluted share the same year-ago quarter.
Research and development (R&D) expenses were $617,000 in the first quarter, as
compared to $621,000 in the previous quarter and $321,000 in the same year-ago
quarter. The increase in R&D expenses over the year-ago quarter included
$133,000 of amortization of deferred development costs this quarter and also
the deferral of $123,000 of CLARISOY-related development costs to deferred
development costs in the year-ago quarter.
General and administrative (G&A) expenses in the first fiscal quarter
increased to $1.0 million from $831,000 in the prior quarter and $745,000 in
the year-ago quarter.The increase in G&A expenses over the year-ago quarter
can be attributed to the deferral of $132,000 of patent costs to deferred
development costs in the year-ago quarter, as well as higher patent costs this
quarter due to higher activity levels.
At June 30, 2013, cash and short-term investments totaled $5.4 million, as
compared to $6.7 million at March 31, 2013. Management believes it has
sufficient resources to fund its expected level of operations and working
capital requirements until at least May 2014. This estimate does not take into
account potential proceeds from outstanding convertible securities, royalty
revenues from the sale of CLARISOY soy protein or the commercialization of
The Company's complete financial statements, along with management's more
detailed discussion and analysis, are available from the Company's investors
section at www.burcon.ca or from www.sedar.com.
Burcon will host a conference call later today, Tuesday, August 13, 2013.
Company management will host the presentation, followed by a question and
Date: Tuesday, August 13, 2013
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Dial-in Direct (Toll/International): 1-480-629-9713
Toll-free (North America): 1-877-941-2069
Conference ID: 4634826
The conference call will be webcast simultaneously and available for replay
here and via the Investors section of the Company's website.
A telephone replay of the call will be available after 8:00 p.m. Eastern time
on the same day through September 13, 2013.
Replay Dial-in: 1-858-384-5517
Replay Direct (Toll/International) 1-858-384-5517
Toll-free (North America):1-877-870-5176
Replay Passcode: 4634826
About Burcon NutraScience Corporation
Burcon NutraScience is a leader in nutrition, health and wellness in the field
of functional plant proteins. The Company has developed a portfolio of
composition, application, and process patents originating from a core protein
extraction and purification technology. Burcon's CLARISOY™ soy protein offers
clarity and high-quality protein nutrition for low pH beverage systems;
Peazazz® is a uniquely soluble and clean-tasting pea protein; and Puratein®,
Supertein™ and Nutratein® are canola protein isolates with unique functional
and nutritional attributes. For more information about the Company, visit
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, 2013.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.
CLARISOY is a trademark of Archer Daniels Midland Company.
Burcon NutraScience Corporation
Condensed Consolidated Interim Balance Sheets
(Prepared in Canadian dollars)
June 30, March 31,
Cash and cash equivalents 3,316,946 4,602,520
Short-term investments 2,093,255 2,085,746
Amounts receivable 34,787 34,524
Prepaid expenses 125,631 153,543
Property and equipment 719,722 559,920
Deferred development costs 1,689,811 1,823,217
Goodwill 1,254,930 1,254,930
Accounts payable and accrued liabilities 685,668 447,884
Deferred revenue 297,138 320,596
Capital stock 54,005,703 54,005,703
Contributed surplus 5,065,951 5,065,951
Options 9,151,418 9,064,232
Warrants 49,453 49,453
Deficit (60,020,249) (58,439,419)
Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Operations and Comprehensive
For the three months ended June 30, 2013 and 2012
(Prepared in Canadian dollars)
Royalty income 23,899 --
General and administrative 1,009,836 745,000
Research and development 617,275 321,299
Loss from operations (1,603,212) (1,066,299)
Interest and other income 22,382 29,321
Loss and comprehensive loss for the period (1,580,830) (1,036,978)
Basic and diluted loss per share (0.050) (0.035)
CONTACT: Media & Industry Contact:
Director, Corporate Development
Burcon NutraScience Corporation
Tel (604) 733-0896, Toll-free (888) 408-7960
Investor Relations Contact:
Liolios Group Inc.
Tel (416) 644-8688
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