DGAP-News: Burcon Reports Fiscal 2014 First Quarter Results
DGAP-News: Burcon NutraScience Corp. / Key word(s): Quarter Results
Burcon Reports Fiscal 2014 First Quarter Results
14.08.2013 / 18:05
Burcon Reports Fiscal 2014 First Quarter Results
Vancouver, British Columbia, August 13, 2013 - Burcon NutraScience
Corporation (TSX: BU, NASDAQ: BUR), a leader in functional, renewable plant
proteins, reported results for the fiscal first quarter ended June 30,
Fiscal 2014 Q1 Operational Highlights
- Burcon advanced the commercial roll-out of Peazazz(R), 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 partners.
- 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(TM) 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 companies.'
'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 essentially 'protein-based.'
'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 its growth.'
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 transition to 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 Peazazz.
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(TM) soy
protein offers clarity and high-quality protein nutrition for low pH
beverage systems; Peazazz(R) is a uniquely soluble and clean-tasting pea
protein; and Puratein(R), Supertein(TM) and Nutratein(R) are canola protein
isolates with unique functional and nutritional attributes. For more
information about the Company, visit www.burcon.ca.
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.
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
End of Corporate News
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