Burcon NutraScience obtains financing for research
June 19, 2009
by Eric Schroeder
VANCOUVER, B.C. — Burcon NutraScience Corp. has completed its previously announced financing that it will use for research on soy proteins and canola proteins. The company obtained about $16.9 million through issuing an aggregate of 2,942,950 common shares at $5.75 per share. Burcon NutraScience’s common shares now will belisted on the Toronto Stock Exchange.
Paradigm Capital, Inc., BMO Capital Markets and Haywood Securities Inc. led the financing. All three investment companies have offices in Toronto while Haywood Securities is based in Vancouver.
Burcon NutraSciences will use the proceeds for continued research and development of Clarisoy, the company’s soy protein isolate extraction and purification technology; further refining of Puratein and Supertein, the company’s canola protein isolate extraction and purification technology; filing new patent applications and expanding Burcon’s intellectual property portfolio; and general working capital purposes.
"We are pleased with the strong response from our new institutional shareholders, particularly at a time when access to capital remains difficult," said Johann F. Tergesen, president and chief operating officer of Burcon NutraScience. "The completion of this financing serves as a validation of the potential of our products and technologies.
"This financing greatly strengthens Burcon’s balance sheet, providing important flexibility to entertain a broad range of potential strategic alliances arising from our recently announced soy protein isolate technology and Clarisoy."