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Burcon Announces Closing of First Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2023) - Burcon NutraScience Corporation (TS...
About this update from Burcon Nutrascience Corporation
[{"type":"text","content":"Burcon Announces Closing of First Tranche of Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 9, 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 closed the first tranche of the fully subscribed non-brokered private placement of units of the Company (the \"Units\") at an issue price of $0.265 per Unit for gross proceeds of approximately $3.3 million (the \"Offering\").The Company closed the first tranche of the Offering through the issuance of 5,784,802 Units at a price of $0.265 per Unit for aggregate gross proceeds of approximately $1.53 million and expects to close the second tranche of the Offering on or before May 11, 2023.The Offering is for the proposed issuance of 12,741,321 Units. 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 closing date of the Offering. 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.The Company intends to use the proceeds from the Offering to continue its research and development program, advance its ongoing commercialization efforts, explore new routes-to-market for its commercially proven technologies and for general corporate purposes.The issuance of Units to insiders under the Offering is considered a related party transaction under Multilateral Instrument 61-101. Burcon is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 on the basis that the participation in the Offering by insiders does not exceed 25% of Burcon's market capitalization. The Offering was unanimously approved by the disinterested directors of Burcon.The securities being offered under the Offering have not been and will not be registered under the United St...