Investment and Company Research
Opportunity Research
MICROCAP HOT TOPICS
 

September 10, 2013

Plandaí Has All the Right Pieces in Place for Success

Earlier this week, Plandaí­ Biotechnology, Inc. (OTCQB – PLPL - $0.50 – Spec Buy) recently released landmark news that after further review, paves the way for the formulation of ingredients with tremendous bioavailability to be used in a whole host of products, including anti-aging and weight loss. 

Last week, the Company announced that it signed an exclusive agreement with North-West University in South Africa which holds the patents and associated intellectual property covering the entrapment of compounds in long-chain fatty acids-based nano- and micro-particles, known as Pheroid. Under the terms of the world license, Plandai has the exclusive right to use the Pheroid technology with all Phytofare™ polyene-based extracts, which includes proprietary extracts of most botanical matter, for human and animal use.

The primary feature of the Pheroid technology is the encapsulation application, which will dramatically enhance the Company’s industry-leading bioavailability. The  Pheroid technology, which can be delivered through different media,  improves the absorption of the encapsulated contents while protecting the contents. It is actively used worldwide for industrial and agricultural purposes and has been extensively tested in humans and animals where it has shown an ability to significantly increase the level of absorption of the entrapped particles into the bloodstream.

For Plandai's purposes, the technology will enable the Company to produce its Phytofare™ topical products with significantly enhanced tissue absorption and oral products that can help Phytofare™ survive intact on its passage through the digestive tract and into the bloodstream. Once in the bloodstream, human cells perceive the Pheroid material as a biological building block and as a source of energy, allowing it to pass through the cell membrane and, by metabolism of the long chain fatty acids, release the valuable phytonutrients (encapsulated contents) directly to the tissues.

The bottom line is that through the incorporation of the licensed technology, Plandai may be one of the first firms in the space to have the capability to consistently deliver products such as botanical extracts, including catechins, carotenoids, and citrus bioflavonoids and limonoids, to the target site in the most efficient and bioavailable form.

Under the terms of the agreement, Plandai can develop, test, and then manufacture Phytofare Pheroid products from different botanical extracts for human and animal use. The first Phytofare™ product to be entrapped in Pheroid and marketed as an ingredient will be Phytofare Catechin Complex, which is a highly bioavailable extract produced from green tea catechins. The license calls for a 2% annual royalty on net sales of Plandai products that incorporate the Pheroid technology and is exempt for Plandai humanitarian products.

Given the low-hanging fruit of the topical product’s efficacy and the size of the weight loss market, we believe that the Company will be able to market the combined product with great success beginning in 1H14, following the completion of a short trial.  Products in other forms and targeting other markets will shortly follow, thus making 2014 the year that the Company migrates from the development stage to the marketing stage.

For more information, refer to our previous PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

You Might Also Like

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer
This Opportunity Research Hot Topics article was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. While stocks in the Opportunity format may have a higher risk profile, they typically offer greater upside as well. Since May 2013, Goldman Small Cap Research has been compensated $500 per article by a third party and $4,000 for a research report service.  

Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.

This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information.  The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report, update, article, or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com

 

© 2014 Goldman Small Cap Research. All Rights Reserved