Business
Burcon Announces Closing of $3.4 Million Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 16, 2023) - Burcon NutraScience Corporation (T...
About this update from Burcon Nutrascience Corporation
[{"type":"text","content":"Burcon Announces Closing of $3.4 Million Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 16, 2023) - Burcon NutraScience Corporation (TSX: BU) (\"Burcon\" or the \"Company\"), a global technology leader in the development of plant-based proteins for foods and beverages, is pleased to announce that, further to its news release on May 8, 2023, the Company has received additional interest in its financing and has closed the third and final tranche of the non-brokered private placement of units of the Company (the \"Units\") at an issue price of $0.265 per Unit for gross proceeds of $3.4 million (the \"Offering\").\"We are thrilled to close a successful funding round well above our initial target,\" said Kip Underwood, Burcon's chief executive officer. \"The funds provide sufficient runway to execute our revised, Burcon 2.0 strategy which focuses on identifying new revenue streams, getting closer to customers, and gaining more influence over the manufacture of our technology. Alternative proteins are experiencing a long-term growth trend and Burcon expects to capitalize on the next wave of plant-based growth. We appreciate the continued support from our long-term shareholders and we are excited to execute on our Burcon 2.0 strategy.\"The Company has issued a further 3,884,603 Units at a price of $0.265 per Unit for gross proceeds of $1,029,420 for its third and final tranche of the Offering. Together with the first and second tranche of the Offering, the Company issued a total of 12,880,829 Units for gross proceeds of $3,413,420. Each Unit consists of one common share in the capital of the Company (each, a \"Common Share\") and one Common Share purchase warrant of the Company (each, a \"Warrant\"). Each Warrant entitles the holder thereof to purchase one Common Share (each a \"Warrant Share\") at a price of $0.35 per Warrant Share for a period of 36 months after the applicable closing date of each tranche. All securities issued in connection with the Offering are subject to a statutory hold period in Canada expiring four months and one day from the closing of the private placement.In connection with the Offering, the Company paid eligible finders an aggregate cash finder fee of $9,440.The Company intends to use the proceeds from the Offering to continue its research and development program, advance its ongoing co...