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Burcon NutraScience Corp .: Burcon issues business update and message to convertible bond holders
DGAP-News: Burcon NutraScience Corp. / Key word (s): Miscellaneous
02.09.2020 / 16:25
The issuer is responsible for the content of the announcement.
Burcon gives business update and has news
Convertible bond holders
Vancouver, Canada, September 2, 2020 - Burcon NutraScience Corporation ("Burcon") (Frankfurt WKN: 157 793, TSX: BU, OTCQB: BUROF), a global technology leader in the development of plant-based proteins, is pleased to provide further updates on its activities and announces the obligation to convert its outstanding convertible bonds .
Consumers today are looking for really good taste, simple labels and vegetable proteins of alternative origins that they can feel good about. This also includes feeling good about the environmental impact of your food purchase decisions. In addition to the pea and rapeseed proteins that Burcon has exclusively licensed to Merit Foods, Burcon has a number of additional technologies for the production of alternative vegetable protein additives with valuable functional and nutritional properties. This means that Burcon is ideally positioned to continue to take advantage of today's market opportunities.
Burcon has developed technologies and holds patents and / or patent applications for high-purity hemp protein, sunflower seed protein, flax protein, and more. All of them show promise for product use: from meat alternatives to dietary supplements. Burcon's other plant-based proteins are GMO-free, can be certified organic and are allergy-friendly, and as such they fulfill everything that consumers are looking for in label-friendly products.
"Having secured and strengthened Merit Foods with the addition of Bunge as an equity partner, Burcon now has the luxury of allowing our team of scientists and engineers - at Burcon's Winnipeg Technical Center - to focus on exploring our pipeline of other alternative plant-based proteins "said Johann F. Tergesen, Burcon's President and Chief Executive Officer, adding," For over twenty years, Burcon's vision has been to be the recognized global leader in the development of novel, high-purity, plant-based proteins. "
As part of Bunge Limited's investment in Merit Functional Foods that Burcon announced on August 27, 2020, Export Development Canada ("EDC") and Farm Credit Canada ("FCC") have now released the $ 4 million guarantee that Burcon originally granted EDC and FCC in connection with the $ 85 million financing package. The financing package was provided to Merit by EDC, FCC and the Canadian Imperial Bank of Commerce.
EDC has also released and returned to Burcon a letter of credit from HSBC Bank Canada for $ 6.5 million, which Burcon provided to EDC as a beneficiary to secure Merit Food's obligations under its loan obligations with EDC.
In addition to the above updates, Burcon is informing its holders of convertible bonds issued on December 10, 2019. Burcon completed a non-brokered private placement of unsecured convertible bonds (the "Convertible Bonds") in December 2019 for gross proceeds of $ 9.5 million. Under the terms of the Convertible Notes, Burcon has the right to enforce conversion of the Convertible Notes into common stock of the Company (the "Common Stock") if the common stock is listed on the Toronto Stock Exchange ("TSX") for a period of fourteen (14) consecutive trading days traded at or above CAD 2.15. Between August 12, 2020 and August 31, 2020, Burcon's common stock traded at or above $ 2.15 on the TSX for fourteen (14) consecutive days. The convertible bonds will convert to ordinary shares at a conversion price of $ 1.05 per common share, which is a price of 952.38 common shares for each nominal value of the convertible bonds of $ 1,000. No fractions of common shares will be issued. The number of common shares issued to each holder is rounded down to the nearest whole number. A formal notice will be sent to the holders of the convertible bonds detailing the conversion date and the procedures for conversion.
About Burcon NutraScience Corporation
Burcon is a global technology leader in the development of plant-based proteins. With over 285 granted patents and over 250 additional patent applications developed over a period of more than twenty years, Burcon has a comprehensive portfolio of patents for the composition, application and processing of novel vegetable proteins from peas, rapeseed, soy, hemp and sunflower seeds and other starting materials. In 2019, Merit Functional Foods Corporation was founded as a joint venture between Burcon and three experienced executives from the food industry. Merit Foods is currently building a state-of-the-art manufacturing facility in Manitoba, Canada, where it will produce the novel pea and canola proteins under the license agreement. You can find more information about the company at www.burcon.ca.
Cautionary Statement Regarding Forward-Looking Statements
The TSX has not reviewed this press release and assumes no responsibility for the accuracy of the contents of this release. This press release contains forward-looking statements or forward-looking information within the meaning of U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements and forward-looking information involve risks, uncertainties and other factors that could affect actual results, performance, prospects and opportunities, so that they could differ materially from the results expressed or expected in the forward-looking statements. Forward-looking statements can be identified by words such as "predict", "intend", "plan", "target", "project", "estimate", "expect", "believe", "future", "likely", "maybe" , "may", "should" or similar references to the future. All statements in this press release, except for historical facts, are forward-looking statements. There can be no assurance that these statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such forward-looking statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations, including actual results of business negotiations, marketing activities, are adverse general economic conditions, market or business conditions, regulatory changes and other risks and factors, as described here and regularly in the regulated reports, including the sections entitled "Risk Factors" in Burcon's Annual Bulletin dated June 29, 2020, filed with the Canadian Securities Administrators at www.sedar.com. Any forward-looking statement or information speaks only as of the date on which it was made; save as required by applicable law, Burcon disclaims any intent or obligation to update any forward-looking statement, either as a result of new information, future events or other. Although Burcon believes that the assumptions in the forward-looking statements are justified, the forward-looking statements cannot guarantee future performance and investors should not rely on such statements.
Manager, Business Development
Burcon NutraScience Corporation
Tel. (604) 733-0896, toll free (888) 408-7960
Steve Campbell, APR
Campbell & Company Public Relations
Tel. (604) 888-5267
This is a translation of the original English press release. Only the English press release is authentic. Liability for the correctness of the translation is excluded.
09/02/2020 Publication of a Corporate News / Financial News, transmitted by DGAP - a service of EQS Group AG.
The issuer is responsible for the content of the announcement.
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