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Burcon Announces Closing of Second Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 12, 2023) - Burcon NutraScience Corporation (T...
About this update from Burcon Nutrascience Corporation
[{"type":"text","content":"Burcon Announces Closing of Second Tranche of Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 12, 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 second 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 has issued a further 3,211,424 Units at a price of $0.265 per Unit for aggregate gross proceeds of $851,027. The Company is working to finalize closing steps for the balance of Units under the Offering with certain subscribers, including long-term shareholders. Together with the first tranche of the Offering, Burcon has closed 71% of the Offering and expects to close the balance in a third and final tranche of the Offering on or before May 16, 2023. \"We are pleased with the interest and support from our long-term shareholders,\" said Kip Underwood, Burcon's chief executing officer, adding, \"Our fundraising efforts have reignited the excitement for Burcon's potential to capture a part of the growing specialty food ingredient market. We look forward to closing the private placement early next week and moving ahead on our Burcon 2.0 strategy.\"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...