Burcon Nutrascience Achieves Key Commercial Milestones with Multiple Plant Proteins

Burcon Nutrascience Corporation advanced commercialization across multiple proteins at its Galesburg facility during the second quarter of 2026, achieving first commercial production and sales of Puratein® C canola protein and first commercial production of FavaPro™ fava protein while continuing to scale Peazazz® C pea protein. Subsequent to quarter-end, the company received more than $500,000 in commercial sales orders and recorded the first commercial sale of FavaPro, signaling growing demand as customers complete evaluations and move to purchase orders. The company's operational flexibility positions it to meet evolving customer needs quickly and with consistent quality.

Customer engagement continued to broaden with more than 200 active projects progressing through late-stage evaluations across diverse end-market applications in food, beverage, and lifestyle nutrition. Second quarter execution included record production activity and successful trade-show outreach, reinforcing momentum to convert pipeline activity into recurring orders and expand shipments as production scales. This expansion comes as the plant protein market continues to experience strong growth driven by consumer demand for sustainable and alternative protein sources.

During and subsequent to the quarter, Burcon announced a non-brokered private placement of up to $4.0 million in unsecured convertible debentures bearing 15% annual interest with a 48-month term and a conversion price of $2.27 per share. The financing includes a conditional accelerated prepayment or conversion feature if the share price trades above $4.54 for 14 consecutive trading days. Insiders committed to a minimum of $2.0 million of the offering, demonstrating confidence in the company's direction. The company also executed a $700,000 short-term unsecured loan with an entity related to a director at 12% interest to bridge to the debenture closing and extended the maturity of the second tranche of its senior secured loan to December 2026.

Proceeds are intended for inventory, labor, production capability, planning future infrastructure, general corporate purposes, and repayment of the bridge loan. Financially, Burcon generated $0.36 million in revenues during the second quarter, representing a 783% increase over the prior year period driven by initial protein sales and contract manufacturing. Year-to-date revenue reached approximately $0.7 million. The quarter's net loss was $3.59 million, or $0.28 per share, reflecting $2.1 million in cost of goods sold that included startup and commissioning costs. Operating focus shifted toward commercialization with research and development and general and administrative expenses down 67% and 17% respectively from the prior year period.

The company ended the second quarter with $1.8 million in cash and a working capital deficit of $8.2 million. Management reaffirmed its calendar year 2025 revenue target of $1-3 million and its calendar year 2026 outlook for $10 million plus revenue with a path to positive cash flow. Stonegate Capital Partners maintains coverage on the company and provides detailed analysis through their research platform at https://stonegateinc.com. This financial guidance suggests management expects the current commercialization momentum to accelerate significantly over the coming years as production scales and customer adoption increases across their protein portfolio.