June 4, 2013
Plandai Products to Assist in Weight Management
While a great deal of attention has been focused on the treatment and prevention of major diseases such as malaria and other conditions using key green tea extracts such as Epigallocatechin gallate (EGCG), the flagship offering of Plandai Biotechnology Inc. (OTCQB - PLPL - $0.53 - Spec Buy) will soon be used to support weight management. The Company secured a distribution agreement which grants South Africa-based Natural Products the exclusive rights in South Africa to develop and market a weight management product using Plandaí's Phytofare™ Catechin Complex. Natural Products specializes in producing and selling Maxi™ nutriceuticals through an Internet client base and directly to pharmacists and wellness retailers in South Africa.
Green tea has long been recognized for its weight management benefits including fat reduction, increased metabolism and improved endurance during exercise. In fact, a recent Pennsylvania State University study featured in Obesity magazine demonstrated in an animal study that the use of EGCG reduces the ability to absorb fat, thus slowing or reducing the rate of weight gain and also enhances the ability to absorb fat. Mice that were fed EGCG along with a high-fat diet gained weight 45 percent more slowly than the control group of mice eating the same diet without EGCG. This suggests that an EGCG supplement slows the rate of weight gain.
Much has been written in recent years regarding the ever-increasing and resulting health consequences stemming from obesity, costing billions of dollars each year. As a result, even the United States Federal government has elected to help lead initiatives to reduce obesity in the U.S. and worldwide. Studies such as the Penn State tests could serve as a driver in the increased consumption of ECGC and other key green tea-based catechins in order to support weight management. The favorable results of this study illustrate how Plandaí stands to strongly benefit from its relationship with Natural Products to develop and market a weight management product using Plandaí's Phytofare™ Catechin Complex, and its far-reaching sales potential.
Given that Plandaí’s products deliver a bioavailability that is superior to other green tea extracts available today, the Company could eventually emerge as a primary source of ECGC via its Phytofare™ Catechin Complex for use in many weight management products, which represents a revenue opportunity approaching hundreds of millions of dollars worldwide. After all, Plandaí's Phytofare™ Catechin Complex is processed to deliver a highly bioavailable, antioxidant- rich botanical extract at a level many times that of other products available on the market.
For more information, refer to our previous PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
Senior Analyst: Robert Goldman
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