Burcon closes second tranche of convertible debenture financing

Burcon NutraScience Corporation (TSX: BU) (OTCQB: BRCNF) closed the second tranche of its convertible debenture private placement, raising $2.75 million in the latest funding round.

The plant-based protein company has now raised a total of $4 million through the first two tranches of the financing, with company insiders subscribing for $2.7 million in convertible debentures across both rounds. The private placement targets a total of $6.9 million when completed.

The first tranche closed on December 31, 2025, raising $1.25 million in cash. The second tranche closed on February 27, 2026, for $2.75 million in cash proceeds.

A final tranche of $2.90 million is expected to close before April 24, 2026, through a non-cash loan conversion component. According to the company's management proxy circular, $2.3 million of the private placement will be paid through an offset from a loan due to a company insider, with an additional $600,000 expected to be paid through another insider loan offset.

"The successful closing of the cash portion of our financing marks an important milestone for Burcon," said Chief Executive Officer Kip Underwood. "With the full targeted cash proceeds now secured, we have strengthened our balance sheet and enhanced our ability to scale production and accelerate commercial execution."

The company did not pay finder's fees in connection with the private placement. The issuance of convertible debentures to insiders constitutes a related party transaction under securities regulations, though the company plans to rely on exemptions since insider participation does not exceed 25% of the company's market capitalization.

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