Burcon Reports Fiscal 2014 Third Quarter Results

Burcon Reports Fiscal 2014 Third Quarter Results

VANCOUVER, British Columbia, Feb. 13, 2014 (GLOBE NEWSWIRE) -- Burcon
NutraScience Corporation (TSX:BU) (Nasdaq:BUR), a leader in functional,
renewable plant proteins, reported results for the fiscal third quarter ended
December 31, 2013.

Operational Highlights

  *Continued discussions with potential multi-national production and
    distribution partners for Peazazz®, Burcon's proprietary clean-tasting and
    uniquely soluble pea protein.
  *Burcon's manufacturing and marketing licensee for its 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.
  *Received seven U.S. patent grants covering processes for extracting plant
    protein, two for soy and five for canola. Subsequent to quarter-end,
    Burcon received a notice of allowance from the U.S. Patent and Trademark
    Office for a composition of matter patent that provides protection
    covering the commercially valuable attributes of CLARISOY™.
  *The company's IP portfolio now includes 257 issued patents in various
    countries, with 51 in the U.S., as well as more than 470 active patent
    applications, including 85 in the U.S.

Management Commentary

"During the quarter, ADM continued to facilitate development activities in the
global food and beverage market with our CLARISOY^TM soy protein," said Johann
Tergesen, the company's president and COO. "Subsequent to the quarter end, the
United States Patent and Trademark Office issued a notice of allowance for an
important and commercially strategic CLARISOY™ patent application containing
numerous specific composition of matter claim. Composition of matter patents
are considered to be the most valuable type of patent because they cover any
use of the claimed matter, regardless of the process by which it was produced
or how it is being used."

"Our efforts to expand and protect our intellectual property portfolio around
our proprietary plant protein science 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 fact, these efforts have resulted in 16
new U.S. patents since the beginning of the 2013 calendar year."

"During the quarter, we made continued strong progress toward commercializing
Burcon's unique plant protein extraction technologies. We have identified the
performance metrics and tasks with the Peazazz® commercialization process and
we are comfortable moving the project forward."

"Clearly, our market timing couldn't be more ideal with producers and end
users looking to replace higher priced dairy proteins. Our Peazazz® pea
protein has a uniquely clean flavor. Between having no taste that can clash
with other ingredients and its high usability and nutritional value, Peazazz®
is ideal for incorporation into numerous beverage applications, as well as in
a number of dairy-alternative products. Peazazz® can enhance snacks, cereals
and diet products, as well as fortify gluten-free, vegetarian, and vegan food
products."

"Further, Peazazz® has exceptional solubility, making it extremely versatile.
In contrast to the major animal-based and plant-based proteins, pea protein is
hypoallergenic. Beyond these amazing properties, Peazazz® is more
environmentally sustainable compared to other protein sources. This is due to
the pea plant's unique ability to draw in nitrogen from the atmosphere and
store it in their roots. These properties allow producers to use less
fertilizer when replenishing the soil, making peas a desired and more
sustainable crop."

"Altogether, we continue to enjoy tremendous opportunities with our patented
and proprietary protein technology. As we begin this commercial phase of our
growth, our positive outlook is strengthened by the recent key patent
allowance for CLARISOY, as well as the extraordinary capabilities of our
current and potential partners with whom we are currently engaged."

Fiscal 2014 Third Quarter Financial Results (In Canadian Dollars)

Revenues totaled $23,750 in the third fiscal quarter of 2014, as compared to
$23,500 in the prior quarter, and $6,800 in the same year-ago quarter.
Revenues were derived mainly from deferred royalty payments from ADM for
CLARISOY™ that were recognized in the quarter.

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.

Research and development expenses in the third fiscal quarter of 2014 were
$588,000, compared to $589,000 in the prior quarter and $572,000 in the same
year-ago quarter.

General and administrative (G&A) expenses in the third fiscal quarter of 2014
were $1.1 million, as compared to $1.1 million in the prior quarter and $1.2
million in the year-ago quarter. The decrease in G&A expenses over the
year-ago quarter was primarily due to an increase of $126,000 in patent
related activity as well as an increase of $93,000 in investor relations
activities during the quarter, offset by a decrease of $44,000 in staff
members at the corporate office and a decrease in stock-based compensation
expense of $270,000.

Net loss in the third fiscal quarter of 2014 totaled $1.5 million or $(0.05)
per basic and diluted share, as compared to $1.6 million or $(0.06) per basic
and diluted share in the prior quarter and $1.8 million or $(0.06) per basic
and diluted share the same year-ago quarter.

At December 31, 2013, cash balances totaled $2.5 million, as compared to $6.7
million at March 31, 2013. Management believes the company has sufficient
resources to fund its expected level of operations and working capital
requirements until at least April 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®. As announced in our news release on February 7, 2014, Burcon intends
to complete a rights offering for maximum gross proceeds of $5.25 million that
is expected to complete on April 2, 2014.

The company's complete financial statements, along with management's more
detailed discussion and analysis, are available in the investors section of
Burcon's website at www.burcon.ca or on www.sedar.com.

Conference Call

Burcon will host a conference call later today, Thursday, February 13, 2014.
Management will host the presentation, followed by a question and answer
period.

Date: Thursday, February 13, 2014
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Dial-in (toll/international): 1-480-629-9712
Toll-free dial-in (North America): 1-877-941-1431
Conference ID: 4663446

A telephone replay of the call will be available after 8:00 p.m. Eastern time
on the same day through March 13, 2014.

Replay dial-in (toll/international): 1-858-384-5517
Toll-free dial-in (North America): 1-877-870-5176
Replay conference ID: 4663446

About Burcon NutraScience Corporation

Burcon NutraScience is a leader a leader in developing functionally and
nutritionally valuable plant-based 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 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.


Burcon NutraScience Corporation
Condensed Consolidated Interim Balance Sheets
(Unaudited)
(Prepared in Canadian dollars)                        
                                          December 31,  March 31,
                                          2013          2013
                                          $             $
Assets                                                
                                                       
Current assets                                        
Cash and cash equivalents                2,545,751    4,602,520
Short-term investments                   --          2,085,746
Amounts receivable                       127,904      34,524
Prepaid expenses                         147,406      153,543
                                                       
                                          2,821,061    6,876,333
                                                       
Property and equipment                   683,975      559,920
                                                       
Deferred development costs               1,422,999    1,823,217
                                                       
Goodwill                                 1,254,930    1,254,930
                                                       
                                          6,182,965    10,514,400
                                                       
Liabilities                                           
                                                       
Current liabilities                                   
Accounts payable and accrued liabilities 465,760      447,884
                                                       
Deferred revenue                         250,221      320,596
                                                       
                                          715,981      768,480
                                                       
Shareholders' Equity                                  
Capital stock                            54,005,703   54,005,703
Contributed surplus                      6,136,123    5,065,951
Options                                  8,437,953    9,064,232
Warrants                                 49,453       49,453
Deficit                                  (63,162,248) (58,439,419)
                                                       
                                          5,466,984    9,745,920
                                                       
                                          6,182,965    10,514,400


Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Operations and Comprehensive
Loss
(Unaudited)
                                                              
(Prepared in Canadian                                          
dollars)
                          Three months ended        Nine months ended
                          December 31               December 31
                          2013         2012         2013         2012
                          $            $            $            $
Revenues                                                     
Royalty income           23,750      6,831       71,108      6,831
                                                              
Expenses                                                     
General and               1,100,423   1,207,909   3,166,300   2,728,027
administrative
Research and development 587,711     572,180     1,794,296   1,481,485
                          1,688,134   1,780,089   4,960,596   4,209,512
                                                              
Loss from operations     (1,664,384) (1,773,258) (4,889,488) (4,202,681)
                                                              
Interest and other        126,025     18,988      166,659     59,646
income
                                                              
Loss and comprehensive    (1,538,359) (1,754,270) (4,722,829) (4,143,035)
loss for the period
                                                              
Basic and diluted loss    (0.049)     (0.057)     (0.149)     (0.137)
per share

CONTACT: Media & Industry Contact:
         Michael Kirwan
         Director, Corporate Development
         Burcon NutraScience Corporation
         Tel (604) 733-0896, Toll-free (888) 408-7960
         mkirwan@burcon.ca
         www.burcon.ca
        
         Investor Relations Contact:
         Matt Glover or Michael Koehler
         Liolios Group Inc.
         (949) 574-3860
         bur@liolios.com
 
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