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Enter Symbol
or Name
USA
CA



Burcon NutraScience Corp
Symbol BU
Shares Issued 35,832,750
Close 2016-10-21 C$ 3.31
Market Cap C$ 118,606,403
Recent Sedar Documents

Burcon NutraScience arranges $5-million rights offering

2016-10-24 09:35 ET - News Release

Mr. Allan Yap reports

BURCON ANNOUNCES RIGHTS OFFERING

Burcon NutraScience Corp. will be offering rights to holders of its common shares of record at the close of business on Nov. 3, 2016. Pursuant to the rights offering, each holder of common shares will receive one transferable right for each common share held. Every 18 rights will entitle a holder to purchase one common share at a price of $2.58. The subscription price is equal to approximately an 18.5-per-cent discount to the volume-weighted average trading price of the common shares on the Toronto Stock Exchange for the five-day period ending on Oct. 20, 2016. A maximum of 1,990,708 common shares will be issued pursuant to the rights offering, representing approximately 5.6 per cent of the currently issued and outstanding common shares. The rights offering will be conducted in Canada only and in those jurisdictions where Burcon may lawfully offer the rights. No fractional common shares will be issued.

A rights offering notice, together with a rights certificate, will be mailed to registered holders of common shares as of the record date. Full details of the rights offering, including information regarding the distributions of the rights and the procedures to be followed, are included in the rights offering circular, which will be filed today, together with the notice, under Burcon's profile on SEDAR. To subscribe for common shares, a completed rights certificate, together with payment in full of the subscription price for each common share subscribed for, must be received by the subscription agent for the rights offering, Computershare Investor Services Inc., prior to the expiry of the rights at 5 p.m. (Toronto time) on Nov. 30, 2016. Shareholders who own their common shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

The rights and the common shares issuable upon exercise of the rights will be listed on the TSX. The rights will be listed for trading on the TSX beginning on Nov. 1, 2016, under the symbol BU.RT. Trading in the rights on the TSX will cease at 12 p.m. (Toronto time) on Nov. 30, 2016.

The rights offering will include an additional subscription privilege under which holders of rights who fully exercise their rights will be entitled to subscribe pro rata for additional common shares, if available, that were not otherwise subscribed for in the rights offering.

The estimated net proceeds of the rights offering, assuming full exercise of the rights and after deducting expenses, will be approximately $5-million. The estimated net proceeds of the rights offering will be used to finance Burcon's continuing and expanded research and development program, further strengthen and expand its intellectual property portfolio, and for general working capital. Burcon's research and development will be focused on its Peazazz pea protein extraction and purification technology. Burcon will continue its discussions with a select group of potential strategic partners to commercialize Peazazz. Research and development work, ranging from applications work to shelf-life testing, is and will continue to be undertaken to provide samples to these parties for potential market applications for Peazazz.

In connection with the rights offering, Burcon has entered into a standby commitment agreement with ITC Corp. Ltd. and Allan Yap, Burcon's chairman and chief executive officer. Pursuant to the standby commitment agreement, ITC and Mr. Yap have agreed, subject to certain conditions, to purchase from Burcon such number of common shares that are available to be purchased, but not otherwise subscribed for under the rights offering, that will result in 1,990,708 common shares being issued under the rights offering. A copy of the standby commitment agreement will be filed today under Burcon's profile on SEDAR.

As compensation for providing the standby commitment, each of ITC and Mr. Yap is entitled to receive non-transferable common share purchase warrants entitling ITC to acquire up to 253,815 common shares and Mr. Yap to acquire up to 243,862 common shares at an exercise price of $2.58 per share. The standby warrants will expire two years after issuance. In accordance with the policies of the TSX, the exercise of the standby warrants by each of ITC and Mr. Yap is subject to shareholder approval, which will be sought at Burcon's next annual meeting, which is expected to be held in September, 2017.

About Burcon NutraScience

Burcon is a leader developing functionally superior plant-based proteins. Burcon has developed a portfolio of composition, application and process patents originating from a core protein extraction and purification technology. Burcon's Clarisoy soy protein offers clarity and high-quality protein nutrition for low pH beverage systems, Peazazz is a uniquely soluble and clean-tasting pea protein, and Puratein, Supertein and Nutratein are canola protein isolates with unique functional and nutritional attributes.

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