Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Takes A Step Back
Right before the holiday the stock of Plandai Biotechnology, Inc. (OTCMKTS:PLPL) crashed by 10% and found itself back at $0.54 per share. This correction put an end to the four sessions of climbing that saw PLPL run from a little more than 30 cents to a high of $0.70. The run was mostly facilitated by speculations and now investors are once again hoping that a new PR article will manage to keep the positive momentum going.
PLPL has been trying to do exactly that with a stream of fluff articles but for the past few months they have been having little to no effect. Compared to its prices from February the stock has been constantly sliding towards the bottom and even after the recent gains it is still down by close to 80%.
Despite the depressing performance of the stock there have been a couple of positive developments. At the start of June PLPL received a $1.3 million grant from the South African authorities that combined with the $15.3 million stock purchase agreement from February should provide sufficient funds for the current operations of the company.
PLPL also received a legal opinion letter according to which their Phytofare Catechin Complex could qualify for an exemption from FDA approval if they market it as a dietary supplement. This may enable them to launch the product sooner but for now they are still gearing to begin commercialization in the third quarter of the year. The marijuana side of the business on the other hand has not progressed much, if at all, during the past couple of months. Back in May Jamen Shively, PLPL‘s Vice President of Global Marketing, said that they are still looking for a government that will allow them to conduct medical marijuana research.
With no completed product and relying mainly on hype in order to boost their stock price PLPL remains an extremely speculative choice. Stock Market Media Group is still being paid to publish fluff PR articles about the company and their compensation has currently reached $52 thousand. As we said in one of our previous articles the latest quarterly revealed that PLPL‘s expenses for salaries and wages increased by $200 thousand and now stand at $1.1 million while at the same time they incurred no research costs.
Early in the morning today the company issued another PR that has little to no connection with their operations. In it PLPL
announce their support for the formation of International Coalition of Cannabis Companies and Organizations (ICCCO) and we will see if this news will manage to lift their stock up the chart. 