Burcon Closes Second Tranche of Non-Brokered Private Placement of Convertible Debentures of up to $6.9 Million
Executive Summary
- Burcon NutraScience Corp. closed the second tranche of its non‑brokered private placement, raising $2.75 million in cash (total cash received to date $4 million).
- The overall private placement targets $6.9 million in principal, with a final non‑cash loan‑conversion tranche expected before 2026‑04‑24.
- Proceeds will be used to strengthen the balance sheet and fund scale‑up of production and commercial execution.
Key Details
- Tranche Summary
- First Tranche – $1.25 M cash, closed 2025‑12‑31.
- Second Tranche – $2.75 M cash, closed 2026‑02‑27 (this release).
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Final Tranche – $2.90 M non‑cash loan conversion, to close prior to 2026‑04‑24.
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Aggregate Funding
- Total principal amount of the private placement: $6.9 million.
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Cash received from first and second tranches: $4.0 million.
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Insider Participation
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Insiders subscribed for $2.7 million of the debentures across both cash tranches.
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Loan Offsets
- $2.3 million to be paid via offset from an insider loan.
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Additional $600,000 to be paid via offset from another insider loan.
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Related‑Party Transaction
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Issuance to insiders qualifies as a related‑party transaction under MI 61‑101; exemptions relied upon because insider participation ≤ 25 % of market cap.
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Use of Proceeds (as outlined in Jan 2, 2026 release) – strengthen balance sheet, scale production, accelerate commercial execution.
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Regulatory Notices
- Securities not registered under U.S. securities laws; offering limited to non‑U.S. persons or where exemption applies.
Notable Quotes
“The successful closing of the cash portion of our financing marks an important milestone for Burcon,” said Kip Underwood, CEO. “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.”