Burcon Announces Fiscal 2026 Second Quarter Results

November 12, 2025 4:07 PM EST | Source: Burcon NutraScience CorporationVancouver, British Columbia--(Newsfile Corp. - November 12, 2025) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in plant-based protein innovation, reported results for the fiscal second quarter ended September 30, 2025."Protein sales are gaining momentum as customers complete evaluations and transition to purchase orders," said Kip Underwood, Burcon's chief executive officer. "With recent production runs committed to multiple customers, we are reaffirming our calendar 2025 revenue target of $1-3 million. We expect this growing demand to drive continued revenue acceleration and margin expansion into 2026."Operational highlights for the second quarter ended September 30, 20251:During the quarter, Burcon:Achieved first commercial production and sales of Puratein® C canola protein;Achieved first commercial production of FavaPro™ fava protein;Advanced its robust customer pipeline of 200+ projects under evaluation; andShowcased entire protein portfolio at 2025 IFT FIRST Annual Event & ExpoSubsequent to the quarter-end, Burcon:Received in excess of $500,000 in commercial sales orders for its next generation proteins;Achieved first commercial sale of FavaPro™ fava protein;Announced a non-brokered private placement of convertible debentures for $4 million; andExecuted short-term loan agreement with entity related to a director of BurconManagement CommentaryFiscal 2026 second quarter was marked by strong operational execution and growing commercial traction for Burcon's portfolio of plant-based proteins. The team at Galesburg successfully commercialized Burcon's technology through the production of canola and fava protein. With a diversified portfolio of high-performance, functional protein ingredients, Burcon is well-positioned to meet increasing customer demand across the food, beverage, and lifestyle nutrition sectors.With over 200 active customer projects, many of which have recently completed or are in their final stages of evaluation, Burcon expects demand to scale rapidly and transition into recurring commercial sales. Recent production runs have been largely allocated to entrepreneurial and innovative food and beverage companies. The Company is focused on delivering consistent, high-quality protein products and converting its expanding customer pipeline into ongoing revenue growth.Subsequent to quarter-end, Burcon received commercial sales orders in excess of $500,000, reflecting strong and growing sales momentum. The orders include Burcon's pea, canola and fava proteins, to be utilized across a diverse range of food and beverage applications, highlighting broad customer adoption and multi-protein demand. These orders further validate the market demand for Burcon's next generation plant proteins and signal continued progress toward recurring revenue growth in the coming quarters.Looking ahead, Burcon remains focused on executing its commercialization strategy, strengthening customer partnerships, and scaling production to meet growing global demand. With strong market validation, a diversified portfolio of differentiated proteins, and a clear path to recurring revenue growth, Burcon is on track to achieve its calendar 2026 revenue target of $10+ million and move toward positive cash flow.Financial Results In the three and six months ended September 30, 2025, Burcon generated revenue of $357,000 and $699,000, respectively, which represents a 783% and 152% increase in revenues from the prior year comparable periods. The increase in revenue is a result of protein sales and the provision of contract manufacturing services at the Galesburg production facility.In the six months ended September 30, 2025, the launched commercial production of FavaProTM fava protein and Puratein® C canola protein and scaled production of its Peazazz® C pea protein. The Company reported net cash used in operating activities of $4.6 million as compared to $3.0 million in the same period in the prior year. The Company reported a net loss of $7.1 million or $0.56 per basic and diluted share, as compared to $4.2 million or $0.59 per basic and diluted share in the same period last year. The increases in net cash used in operating activities and net loss were driven by the $3.5 million increase in cost of sales, which encompasses startup and commissioning costs and ongoing production costs of the Galesburg facility. This increase was partially offset by a 61% decrease in research and development expenditures and a 27% decrease in general and administrative expenditures from the comparable period as the Company focused its efforts on commercialization and production at the Galesburg facility. As at September 30, 2025, Burcon had $1.8 million of cash and had a negative working capital of $8.2 million. The working capital deficiency is due to the current nature of the senior secured loan, whereby the lender is a related party and Burcon's largest shareholder. Subsequent to September 30, 2025, the Company obtained a $0.7 million short-term loan, launched its offering of convertible debentures for proceeds of up to $4.0 million, and extended the maturity of second tranche of the senior secured loan, which collectively strengthen the Company's balance sheet and position the Company to capture the growing market demand.For full details on the Company's financial results, refer to the financial statements for the three and six months ended September 30, 2025 and management's discussion and analysis for such period filed on www.sedarplus.ca.Conference Call DetailsBurcon will hold an investor conference call and webcast on Wednesday, November 12, 2025 at 5:00pm ET.A link to the webcast of the conference call is available on Burcon's website under "Presentations" or directly here. 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: Wednesday November 12, 2025Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)Toll-free dial-in (North America): 1-800-717-1738Dial-in (toll/international): 1-646-307-1865Conference ID: 57223About Burcon NutraScience CorporationBurcon is a global technology leader in high-performance plant-based proteins for the food and beverage industry. Our commercial ingredients offer superior taste, texture, and functionality-ideal for formulators seeking next-generation protein solutions. Backed by over two decades of innovation, Burcon holds an extensive patent portfolio covering novel proteins derived from pea, canola, soy, hemp, sunflower, and other plant sources. As a key player in the rapidly growing plant-based market, Burcon is committed to sustainability and to creating best-in-class protein solutions that are better for people and the planet. Learn more at www.burcon.ca.Forward-Looking Information Cautionary StatementThe 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 within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. 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. Forward-looking statements or forward-looking information can be identified by words such as "anticipate," "aim", "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "may," "should," "could," "will" and similar references to future periods. All statements included in this release, other than statements of historical fact, are forward-looking statements. 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 implementation of our business model and growth strategies; trends and competition in our industry our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations, 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 for the year ended March 31, 2025 and its other public filings with Canadian securities regulators on SEDAR+ at www.sedarplus.ca. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Any forward-looking statement or information speaks only 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 the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, investors should not rely on such statements.Burcon NutraScience Corporation Condensed Consolidated Interim Statements of Financial Position (Unaudited) As at September 30, 2025 and March 31, 2025 (In Canadian dollars) September 30, March 31, 2025 2025 Assets Current assets Cash 1,753,942 7,275,972 Amounts receivable and other receivables 385,759 131,974 Inventory 469,065 201,145 Prepaid expenses and deposits 171,452 191,390 2,780,218 7,800,481 Long-term deposit 858,956 853,943 Property and equipment 1,638,179 961,418 Right-of-use assets 13,271,322 14,834,751 Deferred development costs 4,741,896 4,952,647 Goodwill 1,254,930 1,254,930 Total assets 24,545,501 30,658,170 Liabilities Current liabilities Accounts payable and accrued liabilities 1,218,933 1,271,743 Current portion of lease liabilities 1,521,678 890,566 Current portion of secured loan 8,243,489 2,085,567 Deferred revenue and government assistance - 46,870 10,984,100 4,294,746 Secured loan - 5,792,049 Lease liabilities 13,432,281 13,627,713 Total liabilities 24,416,381 23,714,508 Shareholders' Equity Capital stock 131,581,539 131,581,539 Contributed surplus 19,710,224 19,216,437 Options 5,503,800 5,748,320 Warrants 710,613 670,019 Restricted share units 41,106 37,553 Foreign currency translation reserve (29,863) 1,080 Deficit (157,388,299) (150,311,286) Total shareholders' equity 129,120 6,943,662 Total liabilities and shareholders' equity 24,545,501 30,658,170 Burcon NutraScience CorporationCondensed Consolidated Interim Statements of Operations and Comprehensive Loss(Unaudited) For the three and six months ended September 30, 2025 and 2024 (In Canadian dollars) Three months ended Six months ended September 30, September 30, 2025 2024 2025 2024 Revenue 357,194 40,458 699,387 277,075 Cost of Sales 2,105,060 159,952 3,881,744 372,246 Research and development 379,706 1,150,201 714,499 1,833,868 General and administrative 775,062 934,480 1,481,187 2,038,188 Loss from operations (2,902,634) (2,204,175) (5,378,043) (3,967,227) Interest and other income 35,624 14,486 94,539 43,903 Interest and other expense (822,552) (150,928) (1,607,190) (305,995) Foreign exchange (loss) gain 96,428 (14,370) (186,319) 5,061 Net loss (3,593,134) (2,354,987) (7,077,013) (4,224,258) Other comprehensive gain Foreign currency translation adjustment (33,919) - (30,943) - Total comprehensive loss (3,627,053) (2,354,987) (7,107,956) (4,224,258) Basic and diluted loss per share (0.28) (0.33) (0.56) (0.59) 1 All amounts herein are presented in Canadian dollars ($)