US research and development company Burcon NutraScience has closed the final tranche of its private placement of 1,800,000 units, raising gross proceeds of $3.33 million (€3.53m) as announced on 12 April 2002.
The final 185,606 units, at the previously announced price of $1.85 per unit, each unit consisting of one common share and one non-transferable share purchase warrant to purchase an additional common share at a price of $1.85 per share exercisable for a two-year period, were issued on 31 May 2002.
All common shares issued under this final tranche together with any common shares issuable on the exercise of the share purchase warrants have a hold period expiring on 1 October 2002.
The proceeds from the placement are expected to be used in engineering development to further refine Burcon's protein extraction and purification technology and pursue new related products.
Burcon said that the funds will also be used in functionality development initiatives relating to Burcon's proteins and to initiate nutrition profiling of Burcon's proteins.
It is expected that the proceeds will accelerate Burcon's patent activities, being allocated to the preparation for regulatory approval of proteins for human consumption, hiring additional scientific personnel and providing general working capital.
Burcon's goal is to use its patented processing technology to develop purified plant proteins from inexpensive oilseed meals. It is currently focusing its efforts on developing the first commercial canola proteins, Puratein and Supertein.
Canola is the second-largest oilseed crop in the world after soybeans. Burcon is seeking to develop Puratein and Supertein to participate with soy, dairy and egg proteins in the expanding protein ingredient market, with potential uses in prepared foods, nutritional supplements and personal care products.