Burcon announces year-end results

    VANCOUVER, June 25 /CNW/ - Burcon NutraScience Corporation (TSXV - BU)
("Burcon") today reported financial results for the fiscal year ended
March 31, 2007 and provided a review of the year's operations.

    A summary of the highlights of the past year include:

    -   Signed a number of material transfer agreements ("MTAs") with certain
        globally recognized food and beverage companies as well as companies
        involved in the fields of consumer nutritional products and medical
        nutrition products;

    -   Raised gross proceeds of $5.0 million (net proceeds of $4.9 million)
        through a rights offering;

    -   Raised $1.25 million through the exercise of outstanding warrants and
        options; and

    -   Was granted a European Patent for novel protein isolate derived from
        any flax oilseed, including the low linolenic acid variety Linola(TM)

    -   Was granted a U.S. patent over a novel and commercially important
        component of its protein extraction and purification technology which
        enable an improved yield of oilseed protein isolate in an oilseed
        meal aqueous extraction procedure;

    -   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; and

    -   Announced in June 2007 that it has amended the license and
        development agreement with Archer Daniels Midland ("ADM") to proceed
        with regulatory recognition for canola Puratein(R) and Supertein(TM)
        canola protein isolates.

    In early fiscal 2007, Burcon, in conjunction with ADM, focused its work
on the large-scale production of its canola protein isolate products,
Puratein(R) and Supertein(TM). Burcon also processed a large quantity of meal
through an external facility, and together with process control and
improvements, produced the best final product quality to-date.
    During the year, Burcon entered into a number of MTAs with globally
recognized food and beverage and other companies that will test Burcon's
canola protein isolates in food matrices, beverage and nutritional products
etc. while protecting certain intellectual property interests of all of the
parties involved. Burcon and ADM have provided samples of the canola protein
isolate products, Puratein(R) and Supertein(TM) to ADM's third-party customers
who have entered into MTAs.
    During the year, Burcon raised over $6 million through a rights offering
as well as warrant and option exercises to continue to fund its research and
development activities.
    In the coming year, Burcon will continue to direct its efforts at
commercializing Puratein(R) and Supertein(TM) canola protein isolates. The two
main areas of focus will be to continue the process of sampling Burcon's
proteins with major food and beverage companies under MTAs as well as
activities associated with pursuing regulatory recognition for Burcon's canola
proteins in both the U.S. and Europe.

    Financial Results and Highlights
    Burcon reported a net loss of $3,546,630 or $0.15 per share for the year
ended March 31, 2007, as compared to $2,857,149 or $0.13 per share for the
prior year.
    Research and development ("R&D") expenses increased by approximately
$353,000 from the prior year. Salaries and benefits account for approximately
one-half of R&D expenditures and remained relatively stable after taking into
account the stock-based (non-cash) compensation expense of about $151,000
(2006 - $93,000). Analyses and testing increased by about $200,000 from fiscal
2006 due primarily to the costs incurred for the large-scale production of
meal at an external facility. This meal was later used to produce canola
proteins that were sent as samples to ADM's third-party customers for
applications testing and will also be used for regulatory feeding trial
studies. Laboratory operation costs increased by approximately $31,000 due
mainly to higher repairs and maintenance costs on older equipment.
    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 $417,000 (2006
- $384,000) relate to stock-based compensation. Excluding the effect of
stock-based compensation of about $33,000 in 2007 (2006 - $12,000), investor
relations expenses increased by approximately $52,000. The increase in
investor relations expenses is due primarily to travel expenses incurred for
meetings with potential investors, brokers and analysts in North and South
America and Europe, as well as the appointment of Roderick Adams during 2007
to perform investor relations services in the United Kingdom. Included in G&A
expenses are financing expenses of $173,000 (2006 - $152,000) as the estimated
fair value of the warrants issued to the guarantors of the rights offering.
    Total professional fees incurred in 2007 increased by about $301,000 over
2006. This was due primarily to Burcon incurring significant foreign patent
agent filing fees and disbursements from several patents that had entered
National Phase during the year.
    At March 31, 2007, the Company's cash position was $6,172,067, as
compared to $2,511,053 at March 31, 2006. During the year, Burcon raised net
proceeds of $4.9 million from a rights offering and $1.3 million from the
exercise of outstanding options and warrants. Burcon expects to incur
approximately US$740,000 in the regulatory recognition process. Burcon's
management believes that it has sufficient resources to fund its expected
level of operations and working capital requirements to at least October 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.

    "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, 2007 and 2006

                                                        2007            2006
                                                           $               $


    Current assets
    Cash and cash equivalents                      6,172,067       2,511,053
    Amounts receivable                                19,503          11,365
    Prepaid expenses and deposits                     77,866          91,020
                                                   6,269,436       2,613,438

    Property and equipment                           893,523         975,729

    Goodwill                                       1,254,930       1,254,930

                                                   8,417,889       4,844,097


    Current liabilities
    Accounts payable and accrued liabilities         295,547         201,583

    Shareholders' Equity

    Capital stock                                 25,018,046      18,551,107

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

    Options                                        1,585,192       1,025,673

    Deficit                                      (22,173,643)    (18,627,013)

                                                   8,122,342       4,642,514

                                                   8,417,889       4,844,097

    Burcon NutraScience Corporation
    Consolidated Statements of Operations and Deficit
    For the years ended March 31, 2007 and 2006

                                                        2007            2006
                                                           $               $

    Research and development                       1,655,199       1,301,739
    General and administrative                     1,153,608       1,030,260
    Professional fees                                769,758         468,331
    Management fees and services                     144,164         115,011
    Amortization                                       2,422           2,825

    Loss from operations                          (3,725,151)     (2,918,166)

    Other income
    Interest                                         178,521          61,017

    Loss for the year                             (3,546,630)     (2,857,149)

    Deficit, beginning of year                   (18,627,013)    (15,769,864)

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

    Basic and diluted loss per share                   (0.15)          (0.13)

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; London,
UK, Archie Adams, Corporate Development, Burcon NutraScience Corporation, M.
+44 (0) 7768 774311, T. +44 (0) 1235 524959, archie.adams@burcon.ca

Organization Profile

Burcon NutraScience Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890