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 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™ 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.
Management Commentary
"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.
Conference Call
Burcon will host a conference call later today, Tuesday, August
13, 2013. Company management will host the presentation, followed
by a question and answer period.
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 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) |
|
|
|
June 30, |
March 31, |
|
2013 |
2013 |
|
$ |
$ |
Assets |
|
|
|
|
|
Current
assets |
|
|
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 |
|
|
|
|
5,570,619 |
6,876,333 |
|
|
|
Property and
equipment |
719,722 |
559,920 |
|
|
|
Deferred development
costs |
1,689,811 |
1,823,217 |
|
|
|
Goodwill |
1,254,930 |
1,254,930 |
|
|
|
|
9,235,082 |
10,514,400 |
|
|
|
Liabilities |
|
|
|
|
|
Current
liabilities |
|
|
Accounts payable and accrued
liabilities |
685,668 |
447,884 |
|
|
|
Deferred
revenue |
297,138 |
320,596 |
|
|
|
|
982,806 |
768,480 |
|
|
|
Shareholders'
Equity |
|
|
|
|
|
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) |
|
|
|
|
8,252,276 |
9,745,920 |
|
|
|
|
9,235,082 |
10,514,400 |
|
|
Burcon NutraScience
Corporation |
Condensed Consolidated
Interim Statements of Operations and Comprehensive Loss |
(Unaudited) |
For the three
months ended June 30, 2013 and 2012 |
|
|
|
(Prepared in Canadian
dollars) |
|
|
|
|
|
2013 |
2012 |
|
$ |
$ |
Revenues |
|
|
Royalty income |
23,899 |
-- |
|
|
|
Expenses |
|
|
General and administrative |
1,009,836 |
745,000 |
Research and development |
617,275 |
321,299 |
|
1,627,111 |
1,066,299 |
|
|
|
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:
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:
John MacLennan
Managing Director
Liolios Group Inc.
Tel (416) 644-8688
bur@liolios.com
Burcon NutraScience (TSX:BU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Burcon NutraScience (TSX:BU)
Historical Stock Chart
From Jul 2023 to Jul 2024