Burcon announces year-end results, updates on activities



    VANCOUVER, June 27 /CNW/ - Burcon NutraScience Corporation (TSXV - BU)
("Burcon") today reported financial results for the fiscal year ended
March 31, 2008 and provided a review of the year's operations.

    A summary of the highlights of the past year include:

    
    -   Announced in June 2007 the amendment of the license and development
        agreement with Archer Daniels Midland ("ADM") to proceed with
        regulatory recognition for Puratein(R) and Supertein(TM) canola
        protein isolates;

    -   Was granted two U.S. patents for the novel uses of Burcon's
        Supertein(TM) canola protein isolate as a functional component in
        food compositions. With the addition of these patents, Burcon now has
        sixty three issued patents worldwide covering inventions that include
        eight issued U.S. patents. Burcon also has over two hundred patent
        applications including thirty six additional U.S. patent
        applications;

    -   Was granted a U.S. patent over a process for the production of flax
        protein isolates. The innovations protected by this patent result in
        a higher protein yield and an improved product;

    -   Signed a number of additional material transfer agreements ("MTAs").
        These are three-way agreements among Burcon, ADM and potential end-
        users of Burcon's proteins including some of the world's largest food
        and beverage manufacturers as well as companies involved in the
        fields of consumer nutritional products and medical nutrition
        products; and

    -   Raised $831,000 through the exercise of outstanding options.
    

    Burcon announced during the first quarter of fiscal 2008 that it was
proceeding with regulatory recognition for its canola proteins, Puratein(R)
and Supertein(TM). The major scientific studies relating to the U.S. GRAS
self-affirmation process have been completed and now form a part of the larger
dossier of data that also includes scientific information about canola, how
canola is grown, handled and processed, Burcon's protein extraction process
and finally the intended uses of the proteins in foods, beverages etc. (the
process, the products and the intended applications of the products). A panel
of qualified experts must review this dossier and affirm unanimously that the
proteins are both safe and generally recognized as safe for their intended use
in order for the proteins to be GRAS. Although the process is underway, Burcon
cannot provide a specific date as to when it will be complete. To-date,
nothing has come to Burcon's attention that would imply that the proteins are
unsafe for their intended use.
    In the coming year, Burcon will remain focused on commercializing our
Puratein(R) and Supertein(TM) canola protein isolates. With that
commercialization goal in mind, we will continue to work with the major food
and beverage companies who have entered into MTAs for the purpose of
conducting product trials. We will also continue to work with ADM as we
finalize the regulatory recognition process for U.S. GRAS status for
Puratein(R) and Supertein(TM). During the coming year, we have the additional
goal of pursuing European novel foods status, which process is already
underway. Finally, we will continue to diligently pursue additional
opportunities to strengthen our intellectual property base wherever possible.

    Financial Results and Highlights
    --------------------------------
    Burcon reported a loss of $4,042,376 ($0.16 per share) as compared to
$3,546,630 ($0.15 per share) in the prior year. Of the loss amount reported,
$1,186,336 (2007 - $646,380) is attributable to stock-based compensation
(non-cash) expense. Other non-cash items included in the loss amount include
amortization of about $194,000 and services received and settled in capital
stock of $30,000.
    Research and development ("R&D") expenses increased by approximately
$502,000 from the prior year. After taking into account the increase in
stock-based compensation expense of about $231,000, the increase is
attributable to a $25,000 bonus payment relating to fiscal 2005 - 2007, the
hiring of a new employee at the Winnipeg Technical Centre and annual salary
increases. Burcon incurred approximately $397,000 during the year relating to
the regulatory recognition process. This was offset by a decrease in expenses
incurred during the previous year for the large-scale production of meal at an
external facility. This meal was later used to produce canola proteins that
were sent to ADM customers for product trials and for the feeding studies that
support the regulatory recognition process.
    General and Administrative ("G&A") expenses include salaries and
benefits, financing costs, investor relations, office supplies and services
and travel and meals. Of the total G&A expenses, approximately $720,000
(2007 - $418,000) relate to stock-based compensation. The cash portion of
salaries and benefits includes a $75,000 bonus payment paid to officers of the
Company that related to fiscal 2005 - 2007. Excluding the effect of
stock-based compensation of about $231,000 in 2008 (2007 - $33,000), investor
relations expenses decreased by approximately $17,000. This was due primarily
to the resignation of investor relations consultants, First Standard and Mr.
Roderick Adams, during the year. This was offset by additional expenses
incurred, including additional European advertising, conferences and roadshow
expenses totaling about $21,000. Included in G&A expenses in 2007 are
financing expenses of $173,000, a non-cash expense, representing the estimated
fair value of the warrants issued to the guarantors of the August 2006 rights
offering.
    Total professional fees incurred in 2008 decreased by about $170,000 over
2007. This was due primarily to Burcon incurring significant foreign patent
agent filing fees and disbursements last year for several patents that had
entered National Phase.
    At March 31, 2008, the Company's cash position was $4,220,679, as
compared to $6,172,067 at March 31, 2007. During the year, the exercise of
options provided proceeds of about $831,000, as compared to last year during
which Burcon raised net proceeds of $4.9 million from a rights offering and
$1.3 million from the exercise of outstanding options and warrants. To-date,
Burcon has incurred US$473,000 related to the regulatory recognition process
and expects to incur a further US$144,000. The total cost of the regulatory
process is currently estimated at US$977,000, with Burcon's share estimated at
US$617,000. Under the terms of the amended agreement with ADM, Burcon's share
will be reimbursable should ADM proceed with the license agreement with
Burcon.
    Burcon's management believes that it has sufficient resources to fund its
expected level of operations and working capital requirements to at least
November 2009.

    About Burcon NutraScience

    Burcon is a research and development company developing a portfolio of
composition, application, and process patents around its plant protein
extraction and purification technology. The goal of Burcon's research is to
develop its patented process to utilize inexpensive oilseed meals for the
production of purified plant proteins that exhibit valuable nutritional,
functional or nutraceutical profiles. Burcon, in conjunction with Archer
Daniels Midland, is currently focusing its efforts on developing the world's
first commercial canola proteins, Puratein(R) and Supertein(TM). Canola,
recognized for its nutritional qualities, is the second-largest oilseed crop
in the world after soybeans. Burcon's goal is to develop Puratein(R) and
Supertein(TM) to participate with soy, dairy, and egg proteins in the
expanding multi-billion-dollar protein ingredient market, with potential uses
in prepared foods, nutritional supplements, and personal care products.

    ON BEHALF OF THE BOARD OF DIRECTORS
    "Johann F. Tergesen"
    Johann F. Tergesen
    President & Chief Operating Officer

    The TSX Venture Exchange 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 that involve
risks and uncertainties. These forward-looking statements relate to, among
other things, 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 that are not historical fact. Our expectations regarding the
prospect for future success depend upon our ability to develop and sell
products, which we do not produce today and cannot be sold without further
research and development. When used in this press release, the words "goal",
"intend", "believes" and "potential" and similar expressions, generally
identify forward-looking statements. These statements reflect our current
expectations. They are subject to a number of risks and uncertainties. In
light of the many risks and uncertainties surrounding the development of a
source of protein from canola meal, you should understand that we cannot
assure you that the forward looking statements contained in this press release
will be realized.

    
    Burcon NutraScience Corporation
    Consolidated Balance Sheets
    As at March 31, 2008 and 2007

                                                          2008          2007
                                                             $             $
    Assets

    Current assets
    Cash and cash equivalents                        4,220,679     6,172,067
    Amounts receivable                                  15,893        19,503
    Prepaid expenses and deposits                      183,402        77,866
                                                  ---------------------------
                                                     4,419,974     6,269,436

    Property and equipment                             764,045       893,523

    Goodwill                                         1,254,930     1,254,930
                                                  ---------------------------

                                                     6,438,949     8,417,889
                                                  ---------------------------
                                                  ---------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           216,328       295,547
                                                  ---------------------------

    Shareholders' Equity

    Capital stock                                   26,281,156    25,018,046

    Contributed surplus                              3,692,747     3,692,747

    Options                                          2,464,737     1,585,192

    Deficit                                        (26,216,019)  (22,173,643)
                                                  ---------------------------

                                                     6,222,621     8,122,342
                                                  ---------------------------

                                                     6,438,949     8,417,889
                                                  ---------------------------
                                                  ---------------------------



    Burcon NutraScience Corporation
    Consolidated Statements of Operations, Comprehensive Loss, and Deficit
    For the years ended March 31, 2008 and 2007

                                                          2008          2007
                                                             $             $
    Expenses
    Research and development                         2,157,617     1,655,199
    General and administrative                       1,363,897     1,153,608
    Professional fees                                  600,033       769,758
    Management fees and services                       147,946       144,164
    Amortization                                         2,347         2,422
                                                  ---------------------------

    Loss from operations                            (4,271,840)   (3,725,151)

    Other income
    Interest                                           229,464       178,521
                                                  ---------------------------

    Loss and comprehensive loss for the year        (4,042,376)   (3,546,630)

    Deficit, beginning of year                     (22,173,643)  (18,627,013)
                                                  ---------------------------

    Deficit, end of year                           (26,216,019)  (22,173,643)
                                                  ---------------------------
                                                  ---------------------------

    Basic and diluted loss per share                     (0.16)        (0.15)
                                                  ---------------------------
                                                  ---------------------------



    Burcon NutraScience Corporation
    Consolidated Statements of Cash Flows
    For the years ended March 31, 2008 and 2007

                                                          2008          2007
                                                             $             $

    Cash flows from operating activities
    Loss for the year                               (4,042,376)   (3,546,630)
      Items not affecting cash
        Amortizaion                                    194,145       234,775
        Non-cash financing costs                             -       172,782
        Stock-based compensation expense             1,186,336       646,380
        Services received and settled in
         capital stock                                  30,004        30,000
                                                  ---------------------------

                                                    (2,631,891)   (2,462,693)
    Changes in non-cash working capital items
      Amounts receivable                                 3,610        (8,138)
      Prepaid expenses and deposits                     (9,891)        5,295
      Accounts payable and accrued liabilities         (79,219)       93,964
                                                  ---------------------------

                                                    (2,717,391)   (2,371,572)
                                                  ---------------------------
    Cash flows from investing activities
    Acquisition of property and equipment              (64,667)     (152,569)
                                                  ---------------------------

    Cash flows from financing activities
    Issue of capital stock                             830,670     6,294,389
    Share and warrant issue costs                            -      (109,234)
                                                  ---------------------------

                                                       830,670     6,185,155
                                                  ---------------------------

    (Decrease) increase in cash and
     cash equivalents                               (1,951,388)    3,661,014

    Cash and cash equivalents - Beginning of year    6,172,067     2,511,053
                                                  ---------------------------

    Cash and cash equivalents - End of year          4,220,679     6,172,067
                                                  ---------------------------
                                                  ---------------------------

    Cash and cash equivalents consist of
    Cash                                                43,905        28,432
    Cash and cash equivalents                        4,176,774     6,143,635
                                                  ---------------------------
                                                     4,220,679     6,172,067
                                                  ---------------------------
                                                  ---------------------------

    Supplemental disclosure of non-cash activities
    Change in prepaid expenses and deposits            (95,645)        7,859
                                                  ---------------------------
                                                  ---------------------------
    





For further information:

For further information: Jade Cheng, Chief Financial Officer, Burcon
NutraScience Corporation, (604) 733-0896, (888) 408-7960 toll-free,
jcheng@burcon.ca, www.burcon.ca; AXINO AG, Sven Olsson, Investor Relations
Europe, AXINO AG, Konigstrasse 26, 70173 Stuttgart, Germany, Tel. +49-711-25
35 92-30, Fax +49-711-25 35 92-33, olsson@axino.de, www.burcon.net

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