Mr. Kip Underwood reports

BURCON REPORTS FISCAL 2025 THIRD QUARTER RESULTS

Burcon NutraScience Corp. has released its results for the fiscal third quarter ended Dec. 31, 2024.

"For the first time, Burcon will soon have full operational control of a facility to produce its entire portfolio of plant proteins," said Kip Underwood, Burcon's chief executive officer. "This marks a significant milestone for Burcon, reflecting our alliance partner's confidence in the market, our technology and ability to execute."

Operational highlights for the third quarter ended Dec. 31, 2024:

During the quarter, Burcon:

• Formed alliance with Re ProMan LLC to acquire and operate protein production facility;
• Collaborated with Puratos to pioneer new canola protein applications;
• Announced rights offering to finance the production, marketing and sales of Burcon proteins;
• Launched next-generation Peazazz pea protein;
• Launched Puratein canola protein for egg replacement applications;
• Completed two separate contract research projects.

Subsequent to the quarter-end, Burcon:

• Announced its alliance partner, ProMan, signed purchase and sale agreement to acquire protein production facility;
• Agreed to terms with ProMan for the purchase and operation of protein facility;
• Successfully closed rights offering with gross proceeds of $9.43-million;
• Launched new-to-the-world Solatein sunflower protein isolate.

Management commentary

Burcon's fiscal 2025 third quarter marks a transformative period for the company as we make significant strides in executing our capital-light growth plan. The strategic alliance to acquire and operate a protein production facility represents a pivotal step in our efforts to commercialize our proprietary protein technologies at scale. This innovative partnership redefines traditional go-to-market strategies for food-tech companies and could be the foundation of Burcon's future success.

The facility acquisition is in its final due diligence phase, and we expect the transaction to close and the commencement of the term of the manufacturing agreement (as announced on Feb. 3, 2025) in the coming weeks. Following that, Burcon will install proprietary unit operations and begin commercial scale production of its protein products during the first half of calendar 2025.

Our collaboration with Puratos highlights our continued commitment to innovation, demonstrating the versatility of canola protein in bakery and patisserie applications. In addition, by launching our Peazazz pea protein and Solatein sunflower protein, we are accelerating the customer evaluation process with the goal of achieving speed to revenue.

We have over 100 former and prospective customers currently evaluating our proteins, many of whom are eager for a reliable commercial supply. Having full operational control of production enables us to consistently produce high-quality protein products to meet global demand. We anticipate our pea, hemp and canola proteins to be the first products delivered to customers, followed by our sunflower protein as demand increases.

Subsequent to quarter-end, we successfully raised gross proceeds of $9.43-million through a rights offering announced on Nov. 20, 2024. With support from our shareholders, including Burcon directors and management who participated in the rights offering, we have secured well above the $7-million we needed for production, marketing and sales initiatives. The successful closing of this offering further validates investor confidence in our technologies and our ability to execute.

Looking ahead, we are keenly focused on production, sales and driving long-term value for our shareholders. With a solid foundation in place, which includes a strong balance sheet and a direct route to market, we are confident in our ability to capitalize on sales opportunities and establish market leadership in protein innovation.

Financial results (in Canadian dollars)

The company generated $62,000 of revenues in the current quarter from the sale of its protein isolate and the provision of contract research services, compared with nil revenues in the same year-ago quarter.

Burcon reported a net loss of $1.8-million or one cent per basic and diluted share for the current quarter, as compared with $2.0-million or two cents per basic and diluted share in same period last year.

Gross research and development expenses were $700,000, as compared with $1.0-million in the same year-ago quarter. The decrease is due to lower intellectual property, salaries and benefits, and laboratory operations expenditures as the company reduced spending and had lower stock-based compensation expense. The decreases were partially offset by an increase in analyses and testing costs as the company launched commercialization of its canola protein isolate in the current fiscal year.

General and administrative expenses increased by $12,000 during the third quarter over the same year-ago quarter. The increase is primarily due to $113,000 of stock-based compensation issued to consultants in respect of services provided in the quarter as well. This increase is partially offset by a reduction in salaries and benefits expense due to lower stock-based compensation expense and staff changes.

The company has an ongoing funding agreement with Protein Industries Canada (PIC) for the scale-up and commercialization of hempseed and sunflower seed proteins and the company received $78,000 of funding in the current quarter, compared with no funding the comparable year-ago quarter.

At Dec. 31, 2024, cash balances totalled $600,000 compared with $4.2-million at March 31, 2024. On Feb. 13, 2025, the company announced that it closed a rights offering raising gross proceeds of $9.43-million.

Virtual investor presentation details

A link to the webcast of the conference call is available on Burcon's website under "presentations" or directly. The webcast will also be archived for future playback.

Investors interested in participating in the live call can dial-in using the details below:

Date:   Tuesday, Feb. 18, 2025

Time:  5 p.m. Eastern Time (2 p.m. Pacific Time)

Toll-free dial-in (North America):  1-800-717-1738

Dial-in (toll/international):  1-646-307-1865

Conference ID:  37581

About Burcon NutraScience Corp.

Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. Its proteins exhibit superior functionality, taste and nutrition, making them ideal ingredients for food formulators. With over two decades of experience, Burcon has amassed an extensive patent portfolio covering its novel plant-based proteins derived from pea, canola, soy, hemp and sunflower seeds, among other plant sources. Burcon is committed to delivering next-generation, best-in-class protein solutions, positioning itself as a key player in the rapidly expanding plant-based market. Supporting the growing trend toward a plant-based diet, Burcon offers sustainable protein ingredients that it believes are better for you and better for the planet.

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