DGAP-News: Burcon NutraScience Corp.: BURCON ANNOUNCES YEAR-END RESULTS, UPDATES ON ACTIVITIES
(firmenpresse) - DGAP-News: Burcon NutraScience Corp. / Key word(s): Final Results
Burcon NutraScience Corp.: BURCON ANNOUNCES YEAR-END RESULTS, UPDATES
ON ACTIVITIES
24.06.2011 / 17:30
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BURCON ANNOUNCES YEAR-END RESULTS, UPDATES ON ACTIVITIES
Vancouver, British Columbia, June 22, 2011 - Burcon NutraScience
Corporation (TSX - BU) ('Burcon') today reported financial results for the
fiscal year ended March 31, 2011 and provided a review of the year's
operations.
A summary of the highlights of the past year includes:
- Received a no objection letter from the U.S. Food and Drug
Administration (FDA) that Puratein(R) and Supertein(TM) are GRAS
(Generally Recognized As Safe) under their intended conditions of use;
- Held discussions, supported due diligence activities, and negotiated
possible business structures with a short list of potential strategic
alliance partners for the commercialization of CLARISOY(R) soy protein;
- Entered into a License and Production Agreement with ADM for the
worldwide production, marketing and sale of Burcon's CLARISOY(R) soy
protein;
- Filed several patent applications over newly developed novel processes
for the production, functional and nutritional applications of, and
functional attributes of CLARISOY(R) soy protein;
- Granted 13 U.S. patents over Burcon's canola and flax protein patent
applications;
- Raised $1,867,000 through the exercise of incentive stock options and
agents' compensation options.
Since the announcement of CLARISOY(R), Burcon has undertaken numerous
activities in the pursuit of establishing a strategic alliance for the
commercialization of CLARISOY(R) soy protein. Over the past year, Burcon
held numerous discussions and negotiations with a short-list of global
companies for the commercialization of CLARISOY(R). The process of
pursuing a strategic alliance partner or partners for the development of
Burcon's CLARISOY(R) soy protein was focused on partnering for both the
production of CLARISOY(R) as well as the marketing and sale of CLARISOY(R)
to food and beverage manufacturers. In November 2010, Burcon announced
that it had signed a letter of intent with ADM to license its CLARISOY(R)
technology. In March 2011, Burcon and ADM entered into a definitive
license and production agreement for the worldwide production, marketing
and sale of Burcon's CLARISOY(R) soy protein. The license agreement
provides ADM with the exclusive rights across all geographic regions and
all potential product applications to produce, market and sell CLARISOY(R)
soy protein. ADM will make royalty payments to Burcon on the sales of
CLARISOY(R) under the twenty-year license agreement. The maintenance of
the CLARISOY(R) soy protein patent portfolio during the term of the license
agreement will be responsibility of Burcon.
In August 2010, Burcon announced that the U.S. FDA issued a no objection
letter with respect to Puratein(R) and Supertein(TM) canola protein
isolates. This response indicates that the FDA has no objection to the
conclusion that Puratein(R) and Supertein(TM) are generally recognized as
safe among qualified experts for use alone or together as an ingredient in
dairy products, grain products, fruit and vegetable juices and beverages,
salad dressings, meal replacements, and nutritional bars.Based on the
information provided, as well as other information available to the FDA,
the FDA responded that it has no questions at this time regarding the
conclusion that Puratein(R) and Supertein(TM) are GRAS under their intended
conditions of use. Puratein(R) and Supertein(TM) are therefore considered
to be GRAS-Notified.
Concurrent with the announcement of the license and production agreement
with ADM for CLARISOY(R), Burcon also announced that it had amended the
license and development agreement (the Canola Agreement) with ADM to
provide an extended development period for continued research aimed at
expanding the commercial value of Puratein(R) and Supertein(TM). The
development period has been extended to March 1, 2012 to facilitate
continued research on the commercialization potential, particularly with
respect to their unique functional and nutritional characteristics. As
part of the amendment, Burcon has agreed to reimburse ADM for its share of
the regulatory recognition costs for Puratein(R) and Supertein(TM) of
US$360,000 (C$356,000). Subsequent to the year-end, the funds were
deposited into an escrow account held in trust for Burcon and ADM until
March 1, 2012. On March 1, 2012, the funds held in the escrow account,
including any accrued interest, will be released to ADM, and upon receipt,
all intellectual property, reports, studies or other materials prepared by
ADM, Burcon or by a third party in connection with the GRAS process will be
deemed to be owned solely by Burcon and ADM will have no further rights
with respect thereto. Unless Burcon and ADM come to any other agreements,
the Canola Agreement will terminate on March 1, 2012.
For the coming year, Burcon's objectives are to further the development and
commercialization of its soy and canola products.
CLARISOY(R)
Burcon intends to conduct further research and development to improve or
develop novel applications for CLARISOY(R) soy protein into food products.
Burcon also will support ADM in connection with its development of a
commercial facility for the production, marketing and sale of CLARISOY(R)
soy protein.
Puratein(R) and Supertein(TM)
Burcon plans to conduct further research and development to establish the
unique functional and nutritional characteristics of Supertein(TM) and
Puratein(R) canola protein isolates and also initiate scientific research
projects aimed at establishing the potential health benefits of
Supertein(TM) canola protein isolate and its use as a functional food
ingredient. Burcon's ultimate objective from its canola research
activities is to develop Puratein(R) and Supertein(TM) through one or more
strategic alliances to pursue the development and construction of a first
commercial facility.
Burcon will continue to refine its protein extraction and purification
technologies and to develop new technologies and related products. In
addition, Burcon will further strengthen and expand its intellectual
property portfolio. Burcon will also explore opportunities for acquiring
or licensing into Burcon, novel technologies that will complement or
enhance Burcon's intellectual property portfolio and business initiatives.
Financial Results and Highlights
Burcon reported a loss of $8,433,451 ($0.29 per share) for the year as
compared to $6,660,322 ($0.24 per share) in the prior year. Included in
the loss amount reported is stock-based compensation (non-cash) costs of
$3,718,096 (2010 - $2,649,297). The other non-cash costs included in the
loss for the year are amortization of $178,050 (2010 - $163,969) and loss
on disposal of property and equipment of $nil (2010 - $924).
Research and development (R&D) expenses increased by approximately $663,000
from fiscal 2010. In March 2011, Burcon determined that it had met all the
criteria of deferring development costs with respect to CLARISOY(R) and has
accordingly capitalized $202,000 to development costs. As noted above,
Burcon has recorded in R&D expenses $356,000 that it has agreed to
reimburse ADM for its share of regulatory recognition costs for
Supertein(TM) and Puratein(R). There were no other significant changes in
R&D expenditures for the year.
General and administrative expenses increased by about $745,000 over the
prior year. Included in salaries and benefits is stock-based compensation
expense of approximately $2,636,000 (2010 -$1,928,000). Options granted to
directors in the third quarter of fiscal 2010 vested immediately and a
related fair value of about $1,059,000 was recorded as stock-based
compensation. The full-year effect of the options granted at the same time
to employees contributed to an increase of stock-based compensation of
about $1,416,000. Options granted to directors this year, of which some
were vested immediately, also contributed to approximately $645,000 of the
increase, offset by about $287,000 of stock-based compensation expense from
options that completed vesting in the first quarter. The cash portion of
salaries and benefits increased by about $174,000 over last year due to two
of the Company's officers having transferred their employment to Burcon
during the year which resulted in an increase in salaries and benefits of
about $112,000. The balance of the increase is attributable to the hiring
of a business development analyst late last year, as well as an increase in
directors' fees due to the appointment of new independent directors and
additional committee meetings held during the year.
Included in investor relations expenses is approximately $125,000 (2010 -
$104,000) of stock-based compensation expense. The cash portion of
investor relations expense increased by approximately $40,000. Fees and
travel expenses paid to U.S. and Canadian investor and public relations
consultants contributed about $46,000 to the increase, as well as expenses
for a newly-designed website of about $32,000, offset by a decrease in
annual report and video expenditures of about $18,000.
Patent legal fees and expenses account for a significant portion of
Burcon's professional fees. Burcon's patent strategy is to aggressively
seek protection for new technologies as well as further protecting current
technologies. During the year, several patents entered National Phase, in
particular during the last quarter that resulted in significant filing fees
in several countries. During the previous year, Burcon filed several new
patent applications relating to CLARISOY(R) soy protein isolate and also
incurred higher foreign agency fees for the registration in various
European countries of patents granted in Europe and also for a patent that
entered national phase in the fourth quarter that resulted in significant
filing fees in various countries. From inception, Burcon has expended
approximately $5.8 million on patent legal fees and disbursements to
strengthen its patent portfolio in various countries of the world and file
patent applications for new inventions.
At March 31, 2011, the Company's cash and short-term investment totaled
approximately $11,932,000, as compared to approximately $13,982,000 at
March 31, 2010. During this year, Burcon received proceeds of $1.9 million
from option and agents' warrant exercises. Management believes it has
sufficient resources to fund its expected level of operations and working
capital requirements to at least January 2013, excluding proceeds from
outstanding convertible securities.
About Burcon NutraScience
Burcon is a leader in nutrition, health and wellness in the field of
functional, renewable plant proteins. Since 1999, Burcon has developed a
portfolio of composition, application, and process patents originating from
our core protein extraction and purification technology. We are developing
Puratein(R) and Supertein(TM) canola protein isolates with unique
functional and nutritional attributes, and CLARISOY(R), a revolutionary soy
protein which is 100% soluble and completely transparent in acidic
solutions. Our team of highly specialized scientists and engineers work
from our own research facility to develop and optimize environmentally
sound technologies. To-date, our patent portfolio consists of 164 issued
patents in various countries, including 27 issued U.S. patents, and in
excess of 275 additional pending patent applications, 70 of which are U.S.
patent applications.
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ON BEHALF OF THE BOARD OF DIRECTORS
'Johann F. Tergesen'
Johann F. Tergesen
President and Chief Operating Officer
Burcon NutraScience Corporation is a publicly listed on the Toronto Stock
Exchange under the symbol
'BU'. For more information on Burcon, visit www.burcon.ca.
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 that involve risks and
uncertainties. These forward-looking statements relate to, among other
things, plans and timing for the introduction or enhancement of our
products, statements about future market conditions, supply and demand
conditions, and other expectations, intentions and plans contained in this
press release that are not historical fact. Our expectations regarding the
prospect for future success depend upon our ability to develop and sell
products, which we do not produce today and cannot be sold without further
research and development. When used in this press release, the words
'goal', 'intend', 'believes' and 'potential' and similar expressions,
generally identify forward-looking statements. These statements reflect our
current expectations. They are subject to a number of risks and
uncertainties. In light of the many risks and uncertainties surrounding the
development of a source of protein from canola meal, you should understand
that we cannot assure you that the forward looking statements contained in
this press release will be realized.
For more information, please contact:
Jade Cheng, Chief Financial Officer
Burcon NutraScience Corporation
(604) 733-0896 / (888) 408-7960 toll-free
jcheng(at)burcon.ca www.burcon.ca
End of Corporate News
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129686 24.06.2011
Datum: 24.06.2011 - 17:30 Uhr
Sprache: Deutsch
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