Plandai Biotechnology Inc (OTCMKTS:PLPL) Delivering Results With More To Come

Plandaí Biotechnology Inc (OTCMKTS:PLPL), the nutraceuticals company distributing Phytofare® Catechin Complex, rebounded in April delivering outstanding returns to many savvy investors who were fast enough to read the company's news. First, the company named a new COO and President as well as a new Sales and Marketing VP, then received a large order from a client, and finally signed several deals that are expected to increase the revenues in the following months. It was definitely a frenetic activity and a lot of good communications, which we will assess in this article. Have a look at the chart price of PLPL:SourceBusinessThe best way to understand the company's key asset is to watch the videos that are shown on the website. Investors can learn from them that the company runs a botanical extraction business in South Africa.What is the key strategy of Plandaí? The most important word used to explain the success of the company is "Bioavailability". This term refers to the amount of compound absorbed by the body into the bloodstream. Why is so relevant? In the green tea market nowadays, most EGCG extracts are sold for about $500/kg. From every kilo, the human body absorbs 1 to 10% compound. Plandaí is able to offer pure products, wherein the bioavailability is close to 60 to 80%. The numbers are self explanatory. Furthermore, the company's extracts are very rich in substances that are difficult to find in other products such as:- gallate catechins from green tea, (catechin gallate (CG)- epigallocatechin gallate (EGCG),- gallocatechin gallate (GCG),- epicatechin gallate (ECG); carotenoids (lycopene)- citrus bioflavonoids and limonoidsSourceThese substances are necessary to develop healthcare products used for weight loss, anti-aging, the lowering of blood cholesterol, the regulation of high blood pressure, and controlling diabetes 1 and 2. Also, do you know what makes the company very different? Undoubtedly, it seems to deliver its product, the Phytofare, at a very competitive price to the producers of this healthy products.SourceRecent developmentsRecent developmentsWe believe that the following news were responsible for the share price rebound seen in April and May. First of all, on March 30, 2017, the company appointed a new COO and president; Callum Cottrell-Duffield. Mr. Cottrell knows the company very well because he has been collaborating with it since its inception. We expect that he may change his team, as it always happens in such cases. In our opinion, executive changes in companies make them more dynamic and competitive. Other market participants seem to agree with our thesis, as the share price rebounded right after the announcement.The new Chief Operating Officer has moved quickly to make changes. On April 17, 2017, he released what he plans to change in the company. Mr. Cottrell promised to "once again become 'current' with the company's financial statement filings". This are great news as the company did not audit its FY2016 financial statements. As our email subscribers know, some investors do not trade companies disclosing late its financial statements. Furthermore, once this is done, the company will file again documents to the SEC website. Thus, many other investors will look at the company and may trade the shares increasing liquidity and most likely the share price. Additionally, the new President said the following about the current level of sales and production:

"We are aiming for the company to be cash-flow positive and profitable by the end of 2017. Achieving this goal involves increasing both production volume and sales. The factory and farm, as currently constituted, can produce approximately 30 tons of extract per growing season." Source

Becoming cash-flow positive and profitable by the end of 2017 means a lot of new revenues and cost cutting. Additionally, the business executive provided some information about its R&D activities regarding Phytofare®. Have a look:

"Our subsidiary, Protext Mobility, will soon begin a human study on the island of Mauritius using Phytofare® to regulate glucose levels in Type 2 Diabetics." Source

But, it is not only that. The company is establishing new partnerships with Cannabis companies to produce Phytofare® complex containing bioavailable cannabinoids. In this way, Plandaí will profit from the rising demand in America of medical treatments using Cannabis, produced by its legalization:

"Protext Mobility, through its subsidiary Cannabis Biosciences Inc., is expecting to shortly receive a research and development license to establish a platform for producing non-psychoactive cannabis. The company plans to produce a Phytofare® complex containing bioavailable cannabinoids, cannabinoid acids, and polyphenols that will be formulated into an oral delivery system." Source

Another corporate restructuring change was announced on Apr 28, 2017. Ezra Jones was appointed new Vice President of Sales and Marketing. The market did not react to the news, but we believe that this news is relevant. Thus, we encourage investors to read them. In our opinion, the President wanted someone else to push up the sales, and this is the new person who may help the company to do it. You know how it works; new plans usually mean new people in charge.On April 24, 2017, Plandaí announced that NutriBullet SuperFood Fat Burning Boost® featuring Plandaí's Phytofare® Catechin Complex will be available in retail outlets across the United States as early as May 2017. This is great news, as it means that a new client will be delivering indirectly the company's products. Hence, the demand for Phytofare will increase as it should do so the company's revenues for FY 2017.Additionally, the company seems to be receiving new orders, which could be the result of the work of the new President or the new VP. On May 2, 2017, Plandaí put out the announcement of a new order for 1.2 million Origine 8™ capsules from Coyne Healthcare. This client noted the importance of the bioavailability concept. Ezra Jones, newly-appointed Vice President of Sales and Marketing for Plandaí, said it:

"Coyne Healthcare immediately grasped the importance of bioavailability and was an early Phytofare® adopter. It is immensely rewarding to see their growth into the U.S. and European markets, and we're pleased that our U.S. shareholders will finally be able to purchase products containing Phytofare® locally." Source

Finally, on May 8, 2017, it was put out that Cambridge Commodities Ltd. will be the Phytofare distributor for the United Kingdom and the entire Europe. What does it mean this again? Yes, it means more revenues. Again, we believe that the new management is actually making smart moves for the company and its shareholders. In our opinion, investors may be able to see the hard work of these individuals soon, once the company communicates its next quarterly results.Who owns sharesFirst of all, the company's shares are owned by insiders. They own approximately 46% of the total outstanding shares. That is quite positive as insiders did not liquidate their position when the share price was rising. In addition, there is one hedge fund with a small amount of shares; Green Square Capital LLC. This money manager owns just 11,075 shares of the company, which is only a small amount. But, the fact that the company passed the due diligence of the fund is significant, even if it was passed long time ago.ConclusionPlandaí's new President seems to have initiated a very ambitious plan. He has hired a new Sales and Marketing expert, who seems to be bringing new orders and contracting new distributors. Additionally, the President is trying to achieve positive cash-flow and net income for 2017. Even if he cannot achieve his targets, it is sure that he may be able to increase the company's growth. Thus, we believe the market will be happy with the results. We don't have to explain here the Gordon Growth Model and why share price should increase? To sum up, there is a lot to like in this company. Try to stay alert. We will be updating our subscribers as soon as we know more. For the latest updates on PLPL, sign up below!Disclosure: We have no position in PLPL and have not been compensated for this article.