Burcon NutraScience Corporation said it has received additional interest in its financing and has completed the third and final tranche of its previously announced, non-brokered private placement, raising a total of $3.4 million by issuing 12,880,829 company units at a price of $0.265 per unit.
The company said it intends to use the proceeds from the offering to continue its research and development program, advance its ongoing commercialization efforts, explore new routes-to-market for its commercially proven technologies and for general corporate purposes.
“We are thrilled to close a successful funding round well above our initial target,” Burcon NutraScience CEO Kip Underwood said in a statement.
“The funds provide sufficient runway to execute our revised, Burcon 2.0 strategy which focuses on identifying new revenue streams, getting closer to customers, and gaining more influence over the manufacture of our technology,” he added.
Underwood also noted that alternative proteins are experiencing a long-term growth trend and Burcon expects to capitalize on the next wave of plant-based growth.
The company added that for its third and final tranche it issued a further 3,884,603 company units, at a price of $0.265 per unit, for gross proceeds of $1,029,420.
Each unit of the private placement consisted of one Burcon common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one company common share, at a price of $0.35 per warrant share, for a period of 36 months after the applicable closing date of each tranche.
As well, Burcon said it paid eligible finders a cash finder fee of $9,440 in connection with the offering.
All securities issued in connection with the private placement are subject to a statutory hold period in Canada expiring four months and one day from the closing of the offering.
Burcon NutraScience is a global technology leader in the development of plant-based proteins for foods and beverages.
Contact Sean at sean@proactiveinvestors.com