SOURCE: Plandai Biotechnology

January 25, 2012 08:30 ET

Plandai Biotechnology, Inc. Announces $13 Million in New Financing

SEATTLE, WA--(Marketwire - Jan 25, 2012) - Plandaí Biotechnology, Inc. (OTCBB: PLPL) Chief Executive Officer, Roger Duffield, today announced that the company, through its South African subsidiary, Dunn Roman Holdings Africa (Proprietary) Ltd, secured loan financing from the Land and Development Bank of South Africa in the amount of $13,000,000 (Rands 100 million). The Company has been notified by the Land Bank that they should anticipate receipt of the first tranche of funding on or about February 25, 2012.

Mr. Duffield stated, "The loan is non-dilutive in nature and there is no equity conversion feature. It is strictly a debt financing. These funds are designated for the Senteeko tea estate in Mpumalanga, South Africa, which grows green tea and produces a bioavailable botanical extract that will be exclusively sold by Plandai as an ingredient for the beverage and wellness industries."

Dunn Roman Holdings Africa (Proprietary) Ltd is currently valued at over $50 million (R400 million), with projected net profit of $19 million (R150 million) by 2017. The company has more than 3500 hectares of land consisting of tea estates, timber plantations and existing infrastructure valued at more than $8 million (R63 million) and secured by long term notarial leases through local communities who own these farms through South Africa Land Claim policies.

Mr. Duffield added, "The project is the first botanical extraction business in South Africa addressing the issues of unprofitable tea estates and making them more viable through the harvesting of fresh green tea leaf for the sole purpose of extracting a bioavailable green tea gallate catechin extract. Green tea extracts from the plant Camellia sinensis contain polyphenols and catechins, which are functional chemical compounds possessing nutritive properties that act effectively as preventive agents in the healthcare field. Polyphenols from green tea are an excellent source antioxidant and anti-carcinogenic substances.

The Northern American and European natural extracts market are emerging and in a state of intense competition. The shift towards natural ingredients is driving the expansion of the natural extracts market. Among the flurry of ingredients competing in the natural extracts market, green tea extracts is a pioneer and one of the most prominent success stories. (Frost & Sullivan Research, 2011)

"The dynamic growth of this industry using formulated green tea extracts as alternative medicine or as a synergistic combination therapy with pre-existing antiviral or antibiotics depends on a method of delivery that ensures its stability and greater bioavailability. Green tea and green tea extracts are one of the most researched agents in the natural botanical sector, with over 20 years of investigations supporting five hundred research studies published identifying markets and final products that deliver benefits in weight loss, anti-aging, treating diabetes 1 & 2, blood cholesterol lowering, treating high blood pressure, and relieving symptoms of certain cancers and malaria. The market for green tea is in a high growth stage with increasing annual volume growth rates between 13-14 percent. (Frost & Sullivan Research, 2011).

About Plandaí Biotechnology, Inc.

Plandaí Biotechnology, Inc., through its recent acquisition of Global Energy Solutions, Ltd. and its subsidiaries, focuses 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.

Contact Information

  • Contact:
    Roger Duffield
    Tel: (425) 466-0212
    Or at Email Contact