Plandai Biotechnology, Inc. Enters Into License Agreement With Phyto Nutricare To Develop Nutraceutical Products
SEATTLE, April 22, 2013 /PRNewswire/ -- Plandai Biotechnology, Inc. (OTCQB: PLPL), a producer of highly bioavailable plant extracts, today announced that it has entered into a license agreement with Phyto Nutricare PLC, a UK company, which will oversee all aspects of developing and marketing Phytofare™ extracts for nutraceutical applications.
Under the terms of the agreement, Phyto Nutricare will pay Plandai a one-time license fee of two million dollars (US$2,000,000) and then a recurring payment equal to five percent (5%) of future profits from Phytofare™ product sales. Sales of Phytofare™ are expected to commence in Q4 of 2013.
Plandai Chief Executive Officer, Roger Duffield commented, "Our foremost goal over the short term is to bring Phytofare™ products to market and begin generating revenues. Phyto Nutricare is tasked with introducing our products to market in the nutraceutical arena, which covers supplements, food and drink additives, cosmetics, healthcare, and related fields. This is a multi-billion dollar industry that has heretofore been plagued by ingredients that suffer from a lack of bioavailability. Botanical extracts are especially prevalent in everything from skin cream to energy drinks. Unfortunately, the way other suppliers produce their extracts results in products that have very little active antioxidant properties and virtually no ability to be absorbed by human tissues."
"Phytofare™, in contrast," explained Mr. Duffield, "is made from living plant material, so we capture the antioxidants while still active. We then are able to re-arrange the molecular structure of the catechins and reduce them to nano-particle size, resulting in a product that is vastly more absorbable by human cells. This maximizes the effectiveness of the benefits of green tea and will allow product manufacturers to finally deliver on their health and wellness claims."
"Licensing the development and distribution of Phytofare™ products for the nutraceutical industry to Phyto Nutricare allows Plandai to focus on the development of new extractions and the pursuit of pharmaceutical drug targets," Mr. Duffield added.
Phyto Nutricare further cemented this relationship by appointing Callum Baylis-Duffield as its President and Chief Executive Officer. Mr. Baylis-Duffield serves on the Board of Directors of Plandai and holds the position of Vice President of Sales and Marketing. He is a graduate in International Business with French (BA Hons) from the University of the West of England. From 2007-2010, he was employed by Johnson and Johnson UK as a marketing & sales manager of a proprietary surgical device. Mr. Baylis-Duffield has been involved with the research and development of the Plandai's proprietary emulsions since 2004 and has worked extensively with the USA scientific team.
Mr. Baylis-Duffield commented, "I'm excited to be back in the UK to head up the introduction of Phytofare™ extracts to the nutraceutical market. Our immediate objective is to complete the final product profiling and testing and then formalize our sales and distribution channels so that we are positioned for maximum market penetration once the first product is available. My job is made easier by having extracts that have greater purity, superior anti-oxidant properties and unmatched bioavailability."
Plandai expects to shortly commence a human clinical trial to targeting bioavailability, obesity, high cholesterol, hypertension and high blood pressure, with results expected in late Q3.
About Plandai Biotechnology, Inc.
Plandai Biotechnology, Inc. and its subsidiaries, focus on the farming of whole fruits, vegetables and live plant material and the production of proprietary functional foods and botanical extracts for the health and wellness industry. Its principle holdings consist of land, farms and infrastructure in South Africa.
Safe Harbor Statement
The information provided may contain forward-looking statements and involve risks and uncertainties. Results, events and performances could vary from those contemplated. These statements involve risks and uncertainties which may cause actual results, expressed or implied, to differ from predicted outcomes. Risks and uncertainties include product demand, market competition, and Plandai's ability to meet current or future plans. Investors should study and understand all risks before making an investment decision. Readers are recommended not to place undue reliance on forward-looking statements or information. Plandai is not obliged to publicly release revisions to any forward-looking statement, to reflect events or circumstances afterward, or to disclose unanticipated occurrences, except as required under applicable laws.
SOURCE Plandai Biotechnology, Inc.