DALLAS, TX -- November 13th, 2025 --Burcon Nutrascience Corporation (TSX: BU): Stonegate Capital Partners updates their coverage on Burcon Nutrascience Corporation (TSX: BU). In 2Q26, Burcon advanced commercialization across multiple proteins at the Galesburg facility, achieving first commercial production and sales of Puratein® C canola protein and first commercial production of FavaPro™ fava protein, while continuing to scale Peazazz® C pea protein. Subsequent to quarter-end, the Company received more than $500,000 in commercial sales orders and recorded the first commercial sale of FavaPro, signaling growing demand as customers complete evaluations and move to purchase orders. This operational flexibility positions the Company to meet evolving customer needs quickly and with consistent quality. 

Company Updates:

Commercial Engagement and Product Pipeline: Customer engagement continued to broaden, with 200 plus active projects progressing through late-stage evaluations and a diverse mix of end-market applications across food, beverage, and lifestyle nutrition. The Company’s 2Q26 execution included record production activity and successful trade-show outreach, reinforcing momentum to convert pipeline activity into recurring orders and expand shipments as production scales.

Financing Makes Room for Growth: During and subsequent to the quarter, BU announced a non-brokered private placement of up to $4.0M in unsecured convertible debentures bearing 15% annual interest (payable at maturity) with a 48-month term and a conversion price of $2.27 per share, including a conditional accelerated prepayment or conversion feature if the share price trades above $4.54 for 14 consecutive trading days. Insiders committed to a minimum of $2.0M. The Company also executed a $700,000 short-term unsecured loan with an entity related to a director at 12% interest to bridge to the debenture closing and extended the maturity of the second tranche of its senior secured loan to December 2026. Proceeds are intended for inventory, labor, production capability, planning future infrastructure, general corporate purposes, and repayment of the bridge loan.

Financial Overview: In 2Q26, Burcon generated $0.36M in revenues, a 783% increase over the prior year period, driven by initial protein sales and contract manufacturing, with year-to-date revenue of ~$0.7M. The quarter’s net loss was $3.59M, or $0.28 per share, reflecting $2.1M in COGS that included startup and commissioning costs; operating focus shifted toward commercialization, with R&D and G&A expenses down 67% and 17% respectively, from the prior year period. The Company ended 2Q26 with $1.8M in cash and a working capital deficit of $8.2M; subsequent actions included receipt of over $500,000 in orders, the announced convertible debenture offering, the $700,000 director loan, and the senior secured loan maturity extension. Management reaffirmed its CY25 revenue target of $1– 3M and its CY26 outlook for $10 million plus revenue and a path to positive cash flow.

Valuation: We use a DCF Model to frame our valuation of BU. Our DCF analysis relies on a range of discount rates between 10.50% and 11.00% with a midpoint of 10.75%, which we believe accurately accounts for the size and relative illiquidity of BU. This arrives at a valuation range of $20.29 to $25.66 with a mid-point of $22.61.

About StonegateStonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

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