By: Dylan Sikes - AllPennyStocks.com News

Tuesday, September 24, 2013

There are many milestones in the development of a biotechnology company, none probably more important than commercialization of a product. Along the way to making it to market, many smaller milestones serve as catalytic moments for valuations, such as partnerships, licensing deals or clinical trial results. Shares of Plandaí Biotechnology, Inc. (OTCQB:PLPL), a producer of highly bioavailable plant extracts for industries including health, wellness, nutriceutical, and pharmaceutical, are on the rise this week and pushing on all-time highs after the company hit one the aforementioned developmental milestones.

The company said Tuesday that it has sold an exclusive license to Canadian skin care product manufacturer Oasix, Inc. Oasix will be granted rights to use Plandaí’s Phytofare™ Pheroid Topical Catechin Complex to develop and market new cosmetic products in Canada, the United States, Africa and Nigeria. Oasix operates the Oasis Skin Institute in Calgary, Alberta, Canada, which offers medical and cosmetic services as well as a full line of skin care, health and wellness products.

The agreement calls for an upfront payment of $500,000, with $250,000 already received by Plandaí and another $250,000 due upon completion of ongoing clinical trials at North-West University in Potchefstoom, South Africa. Further, the five-year deal requires Oasix to purchase minimum quantities of the complex from Plandaí.

“This agreement gives us a firm commitment for product sales as soon as the final testing is complete and our production facilities come online in early 2014,” said Roger Duffield, chairman and chief executive at Plandaí.

Pheroid technology utilizes a nano-entrapment process to allow Phytofare particles to be produced into a topical cream designed to improve tissue absorption. The product is built upon the core strengths of Plandaí to improve bioavailability, the measure of the amount of a compound absorbed into the bloodsteam, in the products in develops. Quite simply, higher bioavailability should deliver a better product with superior results. Plandaí accomplishes this through a patented hydrodynamic sheering process in which live plant materials are converted at the molecular level to mimic human tissues, a transformation that results in the body more readily absorbing the phytonutrients.

Oasix intends to first market the Plandaí’s Phytofare™ Pheroid Topical Catechin Complex as an anti-aging and sun protectant cosmetic product.

As mentioned, this is a milestone in the bigger picture for Plandaí and its multi-branded Phytofare product. The fully integrated company and its subsidiaries are developing a franchise of highly bioavailable, phytonutrient-rich products for a variety of diseases and conditions. Plandaí has the farmland, employees, infrastructure and processing facilities in South Africa to produce its extracts in house. The maiden planting has been done with the first production of its Phytofare Catechin Complex, a water-soluble powder, forecast to begin in January 2014, with sales to follow shortly after.

Further, the company has ongoing – or plans to initiate – clinical trials for variations of Phytofare and Phytofare Pheroid for indications ranging from moisturizing to weight loss to malaria treatments, suggesting the robust potential for the technology.

Plandaí has clearly differentiated itself from what most think of as a “developmental biotech.” Integrated and diversified, the company has multiple revenue streams possible as it continues expanding research and development for the multitude of possibilities of its extract and nanotechnologies to improve efficacy through bioavailability. Shares have risen from under a nickel at the beginning of 2013 to highs of 80 cents in August. After some profit taking pulled shares back to a low of 41 cents, shares have galloped ahead again in September, closing Tuesday up by 22.7 percent at 73.6 cents with the news of the licensing revenue. Technically and fundamentally speaking, it appears that the chart and company could be ready to print new all-time highs. Proper due diligence is, as always, encouraged.

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