Vancouver, British Columbia--(Newsfile Corp. - August 12, 2026) - Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) ("Burcon" or the "Company"), a global technology leader in plant-based protein innovation, reported results for the three months ended June 30, 2026.

"Burcon generated a 54% sequential increase in revenue in the quarter ended June 30, 2026, demonstrating accelerating demand for our solutions. We are seeing market dynamics that reflect something much bigger than our initial growth plan - the protein market is shifting in a direction that plays directly to Burcon's strengths," said Kip Underwood, Chief Executive Officer. "Consumers want clean and sustainably sourced protein, brand owners want purity, performance, and taste, and the explosion of GLP-1 usage is accelerating demand while tightening supply. That is precisely the gap our technology platform expects to fill."

Global demand for protein is accelerating as consumers require more protein intake on fewer calories, while supply constraints in competing protein categories are inflating ingredient costs. Plant-based proteins are an attractive alternative and Burcon's technology platform is adding value to food companies and consumers by supplying clean proteins that deliver superior functionality, flavor, and texture across numerous food and beverage applications.

Underwood continued, "We are pleased to announce our financing transactions, which expand Burcon's access to funding and simplify our capital structure. Most importantly, our enhanced liquidity is expected to support capacity investments we are making in response to the accelerating demand we are seeing from customers. We've proven our technology advantages at scale across multiple proteins and we are seeing that translate into repeat orders from customers who have validated Burcon products against their own demanding standards. We are in the early stage of a large market opportunity - one we believe we are positioned to capture as we leverage our proprietary processes across our expansion efforts at the Galesburg facility."

Financial Results (in Canadian dollars)

In the three months ended June 30, 2026, Burcon generated revenue of $1.3 million, which represents a 54% sequential increase over the March 2026 quarter and 273% over the comparable year ago quarter. In the three months ended June 30, 2026, the Company reported net cash used in operating activities of $2.4 million as compared to $2.7 million in the comparable prior year quarter and a net loss of $3.8 million ($0.30 per share) as compared to $3.5 million ($0.27 per share) in the comparable prior year quarter.

The increase in revenue reflects continued growth in production and sales at the Galesburg production facility, while the increase in net loss primarily reflects costs associated with scaling operations.

As of June 30, 2026, Burcon had $0.9 million of cash and negative working capital of $11.2 million, primarily resulting from the current classification of a senior secured loan, which matures on December 17, 2026, and for which the lender is a related party and Burcon's largest shareholder. The Company has a further $3.0 million of undrawn capacity on a second tranche of the senior secured loan. Subsequent to June 30, 2026, Burcon received a loan of $1.4 million from an entity related to a director of Burcon and launched the Private Placement (defined below) of convertible debentures for an aggregate of up to $8.1 million.

For full details on the Company's financial results, refer to the condensed consolidated interim financial statements for the three months ended June 30, 2026 and management's discussion and analysis for such period filed on SEDAR+ at www.sedarplus.ca.

Short Term Loan

The Company has entered into a loan (the "Loan") of $1.4 million from an entity related to a director of Burcon, which has been fully drawn. The Company is continuing negotiations with the counterparty regarding the structure of the Loan.

The Loan is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Burcon is relying on the exemption available under Section 5.7(1)(a) of MI 61-101 from the minority shareholder approval requirement. Additionally, the Loan is exempt from the formal valuation requirement of MI 61-101 since it is a related party transaction under section (j) of the "related party transaction" definition of MI 61-101. The Loan was approved by the independent directors of the board of directors of Burcon, with the interested director abstaining from the vote.

Convertible Debentures

The Company is pleased to announce a non-brokered private placement of convertible debentures (the "Convertible Debentures") for an aggregate principal amount of up to $8.1 million (the "Private Placement"). Insiders of the Company intend to participate at up to $5,910,000 in principal amount. The Private Placement is subject to the approval of the Toronto Stock Exchange ("TSX") and disinterested shareholders. Burcon will be holding its annual general and special meeting (the "AGSM") on September 16, 2026 at 10am Pacific Time to seek shareholder approval of, amongst other matters, the Private Placement. The AGSM will be held via live webcast at http://meetnow.global/MKVJ2WN. The details of the shareholder approval being sought at the AGSM can be found in the Company's management proxy circular dated July 31, 2026, a copy of which has been posted on the Company's website at www.burcon.ca and under the Company's profile on the SEDAR+ website at www.sedarplus.ca.

Each Convertible Debenture will have a principal amount of $1,000, bear interest at a rate of 15% per annum, payable in full upon maturity, and be unsecured. The principal amount outstanding under the Convertible Debentures and all accrued and unpaid interest thereon will be payable in cash forty-eight (48) months from the date of issuance of the Convertible Debentures. The Convertible Debentures will be convertible at the option of the holder, in whole or in part, into common shares of the Corporation (the "Shares") at a conversion price of $1.60 per Share (the "Conversion Price") and certain Convertible Debentures are convertible at the option of the holder, in whole or in part, into pre-funded warrants ("PF Warrants") of the Company at a conversion price of $1.60 per PF Warrant ("PF Warrant Conversion Price").

At any time after the first anniversary of the issuance date of the Convertible Debentures, if the volume weighted average price of the Shares on the TSX (or such other stock exchange where the Shares principally trade) is above $3.20 for a period of 14 consecutive trading days, the Company may prepay the principal amount outstanding under the Convertible Debentures and any accrued and unpaid interest thereon to the holders of the Convertible Debentures. Upon written notice from the Company of such prepayment, a holder will have thirty (30) days from the date of such notice to accept the prepayment, failing which, the Company may accelerate the conversion of the Convertible Debentures held by such holder into Shares at the Conversion Price or to PF Warrants at the PF Warrant Conversion Price.

The Convertible Debentures and the Shares issuable upon conversion of the Convertible Debentures will be subject to a four month and one day statutory resale restriction pursuant to applicable Canadian securities laws.

The Company intends to use the net proceeds from the Private Placement to (a) continue to accelerate growth through investments in: (i) inventory, labor and production capability and (ii) plan future infrastructure investments for capacity expansion in anticipation of accelerating customer demand; (b) improve production efficiency, including implementing maintenance programs and developing training programs for production labor; (c) partial repayment of the senior secured loan from Large Scale Investments Limited, an entity related to Alan Chan, a director of Burcon; (d) reduction of short term debt that may be advanced from insiders from time to time; and (e) for working capital requirements and other general corporate purposes. The proceeds from the Private Placement are expected to support Burcon's continued commercial scale-up and progress toward positive cash flow.

The Private Placement is expected to close as soon as possible after shareholder approval is obtained and is subject to execution of subscription agreements by the placees and to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX and disinterested shareholder approval.

The issuance of Convertible Debentures to insiders under the Private Placement will be considered a related party transaction under Multilateral Instrument 61-101. The Company will be 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 Private Placement by insiders does not exceed 25% of the Company's market capitalization.

The securities being offered under the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Conference Call Details

Burcon will hold an investor conference call and webcast on Wednesday August 12, 2026 at 5:00pm ET.

A link to the webcast of the conference call is available on Burcon's website under "Presentations" or directly here. The webcast will also be archived for future playback.

Investors interested in participating in the live call can dial in using the details below:

Date: Wednesday August 12, 2026

Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific Time)

Toll-free dial-in (North America): 1-800-717-1738

Dial-in (toll/international): 1-646-307-1865

Conference ID: 54552

About Burcon NutraScience Corporation

http://www.burcon.ca/

Burcon is a global technology leader in plant-based proteins for food and beverage applications. The Company has developed a portfolio of high-performance protein ingredients, including Peazzaz® pea proteins, FavaPro^TM fava proteins and Puratein® canola proteins, and is focused on commercializing its technologies through manufacturing partnerships and growing customer adoption worldwide.

Forward-Looking Information Cautionary Statement

The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements or forward-looking information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements or forward-looking information can be identified by words such as "anticipate," "aim", "intend," "plan," "goal," "project," "estimate," "expect," "believe," "future," "likely," "may," "should," "could," "will" and similar references to future periods. All statements included in this release, other than statements of historical fact, are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements or information. Important factors that could cause actual results to differ materially from Burcon's plans and expectations include the implementation of our business model and growth strategies; trends and competition in our industry our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations, and other risks and factors detailed herein and from time to time in the filings made by Burcon with securities regulators and stock exchanges, including in the section entitled "Risk Factors" in Burcon's annual information form for the year ended March 31, 2026 and its other public filings with Canadian securities regulators on SEDAR+ at www.sedarplus.ca. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Any forward-looking statement or information speaks only as of the date on which it was made, and, except as may be required by applicable securities laws, Burcon disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although Burcon believes the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, investors should not rely on such statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309386

Source: Burcon NutraScience Corporation