Burcon Nutrascience Achieves Key Commercial Milestones and Secures Financing for Growth

Stonegate Capital Partners has updated coverage on Burcon Nutrascience Corporation, highlighting significant commercial progress during the second quarter of fiscal year 2026. The company achieved first commercial production and sales of Puratein® C canola protein and first commercial production of FavaPro™ fava protein while continuing to scale Peazazz® C pea protein at its Galesburg facility. Subsequent to quarter-end, the company received more than $500,000 in commercial sales orders and recorded the first commercial sale of FavaPro, signaling growing market demand as customers complete evaluations and transition to purchase orders.

The company's commercial engagement continues to broaden with over 200 active projects progressing through late-stage evaluations across diverse end-market applications in food, beverage, and lifestyle nutrition. Second quarter execution included record production activity and successful trade-show outreach, reinforcing momentum to convert pipeline activity into recurring orders and expand shipments as production scales. This operational flexibility positions the company to meet evolving customer needs quickly while maintaining consistent quality standards across its protein portfolio.

During and subsequent to the quarter, Burcon announced strategic financing initiatives to support continued growth. The company arranged a non-brokered private placement of up to $4.0 million in unsecured convertible debentures bearing 15% annual interest with a 48-month term and a conversion price of $2.27 per share. Insiders committed to a minimum of $2.0 million of this offering. Additionally, the company executed a $700,000 short-term unsecured loan with an entity related to a director at 12% interest to bridge to the debenture closing and extended the maturity of the second tranche of its senior secured loan to December 2026.

Financially, Burcon generated $0.36 million in revenues during the second quarter, representing a 783% increase over the prior year period, driven by initial protein sales and contract manufacturing activities. Year-to-date revenue reached approximately $0.7 million. The quarter's net loss was $3.59 million, or $0.28 per share, reflecting $2.1 million in cost of goods sold that included startup and commissioning costs. Operating focus has shifted toward commercialization, with research and development and general and administrative expenses declining 67% and 17% respectively from the prior year period. The company ended the quarter with $1.8 million in cash and a working capital deficit of $8.2 million. Management reaffirmed its calendar year 2025 revenue target of $1-3 million and its calendar year 2026 outlook for $10 million plus revenue with a path to positive cash flow.