September 26, 2013
Plandaí Scores Lucrative License Deal
Less than a month removed from acquiring rights to a cutting edge nano and micro particle entrapment technology, Plandaí Biotechnology, Inc. (OTCQB – PLPL) has already secured a lucrative out-licensing agreement that could be worth millions in revenue over the next 5 years.
The Company has sold an exclusive license to Oasix, Inc., a Canadian company that develops and markets skin care products and also operates the Oasis Skin Institute in Alberta, Canada. The terms of the license agreement includes an initial payment of $500,000, of which half has already been paid to Plandaí. The balance is due in the first half of 2014 based on completion of the Company’s clinical trials currently underway at North-West University.
According to the agreement, Oasix will have the right to develop and market cosmetic products using Phytofare™ Pheroid™ Topical Catechin Complex ("ph2TM"), a new topical cream developed using the nano-entrapment technology recently licensed by Plandaí. The 5-year license is limited to ph2TM Topical Catechin Complex for cosmetic uses in Canada, the U.S., South Africa and Nigeria. Oasix is also required to purchase annual minimum quantities of ph2TM Topical Catechin Complex from Plandaí, although the minimum quantity purchases have yet to been released to the public by the Company.
The Pheroid™ technology, developed by North-West University in Potchefstroom, South Africa, allows Phytofare™ particles to be entrapped and produced into a topical cream that should significantly enhance tissue absorption. Oasix initially plans to market the ph2TM Topical Catechin Complex as an anti-aging and sun-protectant cosmetic product.
This license agreement gives Plandaí a firm commitment for product sales as soon as the final testing is completed and production facilities come online in early 2014. Investors should view this deal as a tremendous validation of the product’s efficacy, as evidenced by the initial payment minimum purchase requirement clause as part of the license terms. Moreover, management now has revenue visibility for the next 5 years for this line, which should serve as a major boost to the Company’s valuation. Plus, it is now likely that additional licenses for Europe and other regions will be secured within the next several months as well. Clearly, this major event means that these shares are ripe for a re-valuation.
For more information, refer to our previous sponsored PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
You Might Also Like
Senior Analyst: Robert Goldman
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
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