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.
*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.
"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
"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
"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
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.
Burcon will host a conference call later today, Thursday, February 13, 2014.
Management will host the presentation, followed by a question and answer
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,
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)
December 31, March 31,
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
Property and equipment 683,975 559,920
Deferred development costs 1,422,999 1,823,217
Goodwill 1,254,930 1,254,930
Accounts payable and accrued liabilities 465,760 447,884
Deferred revenue 250,221 320,596
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)
Burcon NutraScience Corporation
Condensed Consolidated Interim Statements of Operations and Comprehensive
(Prepared in Canadian
Three months ended Nine months ended
December 31 December 31
2013 2012 2013 2012
$ $ $ $
Royalty income 23,750 6,831 71,108 6,831
General and 1,100,423 1,207,909 3,166,300 2,728,027
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
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)
CONTACT: Media & Industry Contact:
Director, Corporate Development
Burcon NutraScience Corporation
Tel (604) 733-0896, Toll-free (888) 408-7960
Investor Relations Contact:
Matt Glover or Michael Koehler
Liolios Group Inc.
Press spacebar to pause and continue. Press esc to stop.