DALLAS, TX -- June 26th, 2025 --Burcon Nutrascience Corporation (TSX: BU): Stonegate Capital Partners updates their coverage on Burcon Nutrascience Corporation (TSX: BU). Subsequent to the 2025 year end, Burcon made continued significant progress in its strategic initiatives. The Company successfully scaled up commercial production of its pea protein isolate, marking a pivotal milestone in its go-to-market strategy. This scale up was accomplished at the Company’s Galesburg facility and took less than 90 days. The truncated timeframe enables Burcon to meet customer demand and unlock revenue opportunities. One notable revenue opportunity is a $6.8M multi-year production agreement that BU entered into subsequent to year end. This facility was in part made possible by the Company’s partnership with ProMan, detailed below. The pea protein market is expected to have a TAM of approximately US$215M to US$392M. 

Company Updates:

ProMan Partnership and Outlook: In 3Q25, Burcon detailed a strategic partnership with ProMan to acquire and operate a protein production facility. This partnership, led by Burcon board member John Vassallo, involves ProMan purchasing the facility and leasing it to Burcon. This arrangement allows Burcon to maintain a capital-light position while gaining full control over the production of its entire suite of plant-based protein products. With production online in just 90 days, the Company has reiterated its revenue targets. First-year sales are projected to be in the range of $1M – 3M, with $10+ M revenue expected in year two. Profitability and positive cash flows are expected FY26.

Trading Overview: Subsequent to the quarter end, Burcon announced a share consolidation program. This consolidation was at a 20:1 ratio and became effective commence on June 11, 2025. We view this as positive for the Company as it works to optimize its capital structure. We also note that the Company began trading on the OTCQB Venture Market during the year, bringing additional liquidity and visibility to the Company’s stock.

Additional Product Commercialization: During the year, the Company collaborated with Puratos to pioneer new canola protein applications the Company also launched next-generation Peazazz® pea protein, now commercially produced at the Galesburg facility mentioned above, and Puratein® canola protein for egg replacement applications. Lastly, the Company launched its new-to-the-world Solatein™ sunflower protein isolate.

Financial Overview: In 4Q25, Burcon generated $0.04M in revenues from the sale of its protein isolate and contract research services, compared to no revenues in the same quarter last year. For the full year Burcon generated total revenues of $0.38M. During the fourth quarter the Company successfully closed a rights offering with gross proceeds of $9.4M, ultimately ending the quarter with $7.3M in cash. This gives BU enough liquidity for the foreseeable future until the Company becomes cash flow positive in FY26.

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 $19.36 to $24.52 with a mid-point of $21.59.

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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