November 1, 2013
Plandaí Enters Medical Marijuana Market
In a move that we believe will add meaningful value to the overall company, Plandaí Biotechnology, Inc. (OTCQB – PLPL - $0.51 – Spec Buy) recently announced that it has formed a new wholly-owned subsidiary, Cannabis Biosciences, Inc., to develop and test a new Phytofare™ botanical extract derived from cannabis. Given Plandaí’s unique bioavailability and extraction capabilities, the Company can make some serious inroads as an emerging player in this nascent space, relatively quickly. Conversely, many companies that have entered the space in recent months have done so in a transparent attempt to take advantage of the huge growth opportunity in the medical marijuana arena, despite lacking a coherent and value-added strategy or business model.
According to management, the Plandaí team has been working with cannabis for the past 12 months to determine if the Company’s patent-pending process could produce a phyto-cannabinoid extract that exhibits the same high bioavailability of other Phytofare™ products. Once the current scientific viability model is concluded, preliminary bioavailability testing should commence in early 2014 with clinical trials commencing later in the year to pursue various pharmaceutical and nutraceutical applications.
The new extract will undergo a similar extraction process to the other Phytofare™ products and is expected to demonstrate the same high levels of bioavailability and purity. During the extraction process the company could also remove the psychoactive compound Tetrahydrocannabinol (THC), rendering a botanical drug that offers many of the medicinal benefits of cannabis without the perceived negative side effects.
There have been numerous studies in recent years citing the healing and treatment benefits of cannabinoids including Diabetes, ALS, Chron’s Disease, Multiple Sclerosis, and others. The largest constituent of cannabis, THC, has demonstrated the ability to reduce tumors and slow the progression of Alzheimer’s. The second largest constituent of cannabis, which represents up to 40% of the extract, is Cannabidiol (CBD) which does not have psychoactive properties and will likely be the primary focus of the Company’s testing in the near term.
Now that Plandaí has entered the cannabis market, observers and investors must take notice of the development progress which will have a direct and likely major positive impact on the value of the Company’s stock in 2014.
For more information, refer to our previous sponsored PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
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Senior Analyst: Robert Goldman
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