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Enter Symbol
or Name
USA
CA



Burcon NutraScience Corp
Symbol BU
Shares Issued 31,624,693
Close 2014-04-02 C$ 4.14
Market Cap C$ 130,926,229
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Burcon completes $5.24-million rights offering

2014-04-03 12:44 ET - News Release

Mr. Johann Tergesen reports

BURCON ANNOUNCES COMPLETION OF OVER-SUBSCRIBED RIGHTS OFFERING

Burcon NutraScience Corp. has completed its previously announced offering of rights to holders of its common shares of record at the close of business on Feb. 19, 2014. The rights offering was fully subscribed, and, as such, Burcon has issued 1,860,276 common shares at a price of $2.82 per common share for total gross proceeds to Burcon of $5,245,978.

The rights offering was oversubscribed by approximately $9,823,337 or 3,483,453 common shares due to the demand for the common shares. Total subscriptions, including those exercised pursuant to the additional subscription privilege, represented $15,069,315, or more than 280 per cent of the common shares available under the rights offering.

Each of ITC Corp. Ltd., E-Concept Ltd. and I-Global Ltd. acted as guarantors of the rights offering, having agreed to purchase from Burcon such number of common shares available to be purchased, but not otherwise subscribed for, that would result in a minimum of 930,138 common shares being issued under the rights offering. As the rights offering was oversubscribed, ITC, E-Concept and I-Global were not required to fulfill their respective obligations under the standby commitment. However, to Burcon's knowledge, each of ITC, E-Concept and I-Global did exercise its basic subscription privilege under the rights offering in order to maintain its respective proportionate ownership interest in Burcon.

As compensation for providing the standby commitment, each of ITC, E-Concept and I-Global has received non-transferrable common share purchase warrants entitling ITC to acquire up to 118,918 common shares, E-Concept to acquire up to 62,459 common shares and I-Global to acquire up to 51,157 common shares. The exercise price under the standby warrants is $2.82 per common share. The standby warrants will expire two years after issuance. In accordance with the policies of the Toronto Stock Exchange, the exercise of the standby warrants by each of ITC, E-Concept and I-Global is subject to shareholder approval, which will be sought at Burcon's next annual meeting, which is expected to be held around September, 2014.

The net proceeds from the rights offering will be used by Burcon for continued research and development of its pea and soy protein extraction and purification technologies; commercialization of Burcon's pea protein extraction and purification technology; filing new patent applications; maintaining, strengthening and expanding Burcon's intellectual property portfolio; pursuing product development agreements with major food, beverage and nutritional product companies; continued research and development of Burcon's other protein extraction and purification technologies; and for general working capital.

We seek Safe Harbor.

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