Burcon closes $6.9 million convertible debenture financing

Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) completed the final tranche of its non-brokered private placement of convertible debentures, raising the full targeted amount of $6.9 million.

The Vancouver-based plant-based protein company issued convertible debentures worth $2.9 million in the final tranche. An insider subscribed for approximately $1.7 million of this amount. Total insider participation across all tranches reached approximately $4.4 million in principal amount.

The company received approximately $2.35 million in cash from the final tranche after offsetting $546,678 from amounts owed to an entity related to an insider subscriber. Originally, the company had expected $2.9 million of the placement to be paid through offsets from a loan due to an insider, but determined it would be better not to proceed with those offsets.

Burcon plans to use the proceeds to accelerate growth through investments in inventory, labor and production capability, plan future infrastructure investments, support general corporate purposes, repay short-term loans from two directors, and pay $546,678 owed to RE ProMan, LLC under a contract manufacturing agreement.

"Closing the final tranche of this financing and achieving our full $6.9 million target is an important milestone for Burcon," said Chief Executive Officer Kip Underwood. "The strong participation from insiders and key investors reflects confidence in the momentum we are building and the progress we are making against our plan."

The company did not pay finder's fees in connection with the private placement. The issuance to insiders constitutes a related party transaction under Multilateral Instrument 61-101, though the company plans to rely on exemptions from formal valuation and minority shareholder approval requirements.

The information is based on a company press release statement.

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