Mr. Steve Campbell reports

BURCON REPORTS FISCAL 2024 FIRST QUARTER RESULTS

Burcon NutraScience Corp. has released results for the fiscal first quarter ended June 30, 2023.

Operational highlights for the first quarter ended June 30, 2023:

During the quarter, Burcon:

• Closed a fully subscribed $3.4-million non-brokered private placement;
• Announced that its sunflower protein process is commercially ready;
• Launched its Winnipeg technical centre as a pilot plant processing and scale-up validation service provider;
• Expanded its scope of strategic partnership opportunities for each of its innovative plant-based protein technologies;
• Advanced the due diligence process to commercialize its hemp seed protein technology

Subsequent to the quarter-end, Burcon:

• Partnered with HPS Food and Ingredients Inc. to launch the world's first soluble hemp seed protein isolate;
• Successfully launched its soluble hemp seed protein isolate at IFT FIRST 2023 in Chicago, Ill.

Management commentary

Burcon began fiscal 2024 by strengthening its balance sheet with a $3.4-million non-brokered private placement, which, together with its recent cost-cutting measures and pursuit of potential government funding, is expected to provide us with sufficient runway to execute our Burcon 2.0 strategy. Continued support from our long-term shareholders allowed us to raise funds well above our initial target in the May, 2023, private placement. Our focus going forward is to create value for the company and in particular, for our shareholders who believe in our vision and strategy.

"Our revised Burcon 2.0 strategy, which includes identifying additional revenue sources, getting closer to customers and gaining more influence over the production of our proteins, is a path for us to create value for the company. Our partnership with HPS Food and Ingredients Inc. (HPS) is the first of many proof points for Burcon 2.0. The partnership is an excellent marriage of expertise, creating positive synergistic results. Burcon has production and process engineering expertise, while HPS has access to hemp seed farmers and a global network of hemp ingredient customers. In addition, we continue to evaluate different routes to market for each of our protein technologies, including the potential use of assets from Merit Functional Foods. We are thrilled about our partnership with HPS and are equally excited about additional opportunities we are pursuing to monetize our IP.

"Subsequent to quarter-end, HPS and Burcon successfully launched our hemp seed protein isolate at the world's largest food ingredient tradeshow -- Institute of Food Technologists 2023 Annual Meeting and Exposition (IFT FIRST) -- in Chicago, Ill. Our hemp seed protein isolate with 95-per-cent protein content received overwhelming positive feedback from customers and industry peers. Based on the positive feedback received, we anticipate moving forward on our commercial plans to quickly bring this best-in-class hemp seed protein ingredient to market and further validate our Burcon 2.0 strategy.

"During the quarter, we successfully completed end-to-end validation trials of our novel sunflower protein process, a major milestone in the commercialization roadmap. We see tremendous potential in our unique sunflower protein to disrupt the plant-based ingredient market. We believe that reaching this milestone brings us one step closer to commercialization. Our discussions with potential partners continue to progress as we complete further due diligence while exploring additional paths to market.

"In addition to commercializing Burcon's proteins, we continue to execute initiatives that focus on our three key strategic themes. Burcon announced that it is offering its pilot plant processing and validation capabilities as a service. By leveraging Burcon's expertise and infrastructure, we can better connect with our customers and industry peers. Burcon's capabilities at its Winnipeg technical centre are unique in North America and can provide exceptional value to the growing food ecosystem.

"Going forward, we see a potential path to revenues with our hemp seed protein isolate and is a priority for Burcon to work closely with our partners and customers to ensure we bring forth a commercial-scale, high-quality hemp seed protein product that meets the evolving preferences of customers worldwide."

Financial results (in Canadian dollars)

Net loss totalled $1.9-million or two cents per basic and diluted share for the current quarter, as compared with $4.0-million or four cents per basic and diluted share in same period last year. The lower loss this quarter, as compared with the same year-ago quarter, is due almost entirely to the share of loss in Merit recorded during the first quarter of fiscal 2023. The company's cash conservation efforts have also contributed to lower expenditures.

Research and development expenses totalled $936,000, as compared with $1,248,000 in the same year-ago quarter. The decrease of $312,000 is due mainly to lower intellectual property expenses, driven by optimization of the patent portfolio that resulted in lower maintenance fees.

General and administrative expenses totalled $837,000, as compared with $911,000 in the same year-ago quarter. The decrease of $74,000 is due mainly to the Nasdaq annual fee and United States investor relations consulting expenses incurred during the first quarter of last year.

During the quarter, Burcon completed a private placement for net proceeds of $3.4-million. At June 30, 2023, cash balances totalled $3.6-million compared with $1.5-million at March 31, 2023. Subsequent to the quarter-end, Burcon's largest shareholder, large-scale investments, agreed to extend the maturity date of the first tranche of the secured loan from July 1, 2024, to July 1, 2025. Burcon expects its current cash resources to finance its operations to February, 2024, and further to February, 2025, if conditions for advance under the second tranche are satisfied. These dates may potentially be extended if the company receives funding or generates revenues from other sources including, not limited to, government assistance, pilot plant processing and scale-up validation services.

Conference call details

Burcon will hold an investor conference call and webcast on Monday, Aug. 14, 2023, at 5 p.m. ET.

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

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

Date:  Monday, Aug. 14, 2023

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

Toll-free dial-in (North America):  1-855-327-6837

Dial-in (toll/international):  1-631-891-4304

Conference ID:   10022225

About Burcon NutraScience Corp.

Burcon is a global technology leader in the development of plant-based proteins for foods and beverages. The company's proteins exhibit superior functionality, taste and nutrition, making them ideal ingredients for food formulators. With over two decades of experience, Burcon has amassed an extensive patent portfolio covering its specialty plant-based proteins derived from pea, canola, soy, hemp and sunflower seeds, among other plant sources. Burcon is striving to become a vertically integrated provider of specialty plant-based protein solutions that deliver on health, nutrition and sustainability. Supporting the growing trend toward a plant-based diet, Burcon is developing premium protein ingredients that the company believes is better for you and better for the planet.

We seek Safe Harbor.