Burcon NutraScience Corp (TSX:BU) said it will be raising gross proceeds of approximately $3.3 million from a fully subscribed non-brokered private placement.
Long-term shareholders, including an insider, and a new investor have subscribed to the offering which the company said it believes will close in two tranches, the first on May 8, 2023, and the second on or before May 11, 2023.
Burcon said it intends to use the proceeds to continue its research and development program, advance its ongoing commercialization efforts, explore new routes to market for its technologies, and for general corporate purposes.
"We are pleased to announce a fully subscribed funding round in a challenging market,” said Burcon CEO Kip Underwood in a statement.
"Our shareholders believe in Burcon's long-term strategies to identify new revenue streams, get closer to customers and to have more influence over the manufacture of our technology.”
Burcon said the offering was for the proposed issuance of 12,741,321 units, priced at $0.265 per unit.
Each unit comprises one share and one share purchase warrant, with each warrant entitling the holder to purchase a share at a price of $0.35 for 36 months from the closing date.
In connection with the offering, the company said it may pay a finder’s fee not exceeding 4% of the gross proceeds received by the company.
Burcon is a global technology leader in the development of plant-based proteins for foods and beverages.
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