Burcon NutraScience Corp (TSX:BU) has reported progress in its strategic initiatives and expressed optimism about the future, despite facing challenges, as it posted its unaudited results for the fiscal year ended March 31, 2023.
In the results statement, Kip Underwood, CEO of Burcon, commented: "Fiscal 2023 was a challenging year for Burcon. The company overcame setbacks, brought in new leadership and chartered a new course for the Company."
He added: "We believe in the market opportunity driven by plant-based foods and the role our technology can play in its success. Our pea, canola and soy proteins are proven on a commercial scale, while our sunflower and hemp proteins are market ready. Burcon has a portfolio of proteins that offers compelling value propositions to food formulators addressing the needs of health and sustainability. We are excited to move forward with our Burcon 2.0 strategy and look forward to capitalizing on the opportunities ahead."
Throughout fiscal 2023, Burcon focused on bringing in new leadership and pursuing commercialization opportunities for its plant-based protein ingredients. The company expanded its patent portfolio, appointed new executives, secured a credit facility, and received funding from Protein Industries Canada to develop high-purity protein ingredients.
Burcon's breakthrough development was the extraction of high-purity protein from sunflower seeds. The company successfully completed validation trials for its sunflower protein process and is in discussions with potential partners to bring the technology to market. Additionally, Burcon highlighted its existing portfolio of commercially proven pea, canola, and soy proteins, as well as validated and market-ready sunflower and hemp proteins.
Looking ahead, Burcon said it plans to collaborate with potential partners and customers, customize its protein products to meet market needs, and execute its growth plan to secure new sources of revenue. The company sees tremendous potential for its technologies in the marketplace.
With newly injected capital from a non-brokered private placement, the company aims to execute its Burcon 2.0 strategy, focusing on identifying new revenue streams, getting closer to customers and markets, and exerting more influence over the manufacture of its technology.
Burcon expects its cash resources to fund its operations until March 2024 and potentially until March 2025, subject to meeting the conditions for advance under its loan facility. As of March 31, 2023, the company had approximately $1.5 million of cash.
Looking at other financials, Burcon reported a wider loss of $25.3 million for fiscal 2023, up from a $10.3 million loss a year earlier, primarily due to the write-offs related to Merit Functional Foods Corporation. However, the company's total operating expenses remained stable compared to the previous fiscal year.
Contact the author at jon.hopkins@proactiveinvestors.com