Plandai Biotechnology Announces Acquisition of Minority Holders' Interest in South African Subsidiaries
March 07 2014 - 12:15PM
Marketwired
Plandai Biotechnology Announces Acquisition of Minority Holders'
Interest in South African Subsidiaries
Company Consolidates Ownership as It Readies for Production
NEW YORK, NY--(Marketwired - Mar 7, 2014) - Plandaí
Biotechnology, Inc. (OTCQB: PLPL), a producer of highly
bioavailable plant extracts for industries including health,
wellness, nutraceutical, and pharmaceutical, announced today that
it has acquired an additional eighteen percent (18%) ownership
interest in Dunn Roman Holdings Africa (Pty) Ltd, the South African
holding and management company that operates the Senteeko Tea
Estate and the Phytofare™ production facility. With this
acquisition, Plandaí now owns 100% of Dunn Roman.
Commenting on the acquisition of the minority holders' interest,
Plandaí Chairman and Chief Executive Officer Roger Duffield
commented, "Strategically this acquisition makes sense for us
because now we can consolidate all of our South African interests
into one company. This eliminates intercompany transfer
pricing, which is detrimental to customers, and also avoids the
double taxation at the different corporate levels in South
Africa. In the early stages of our operations, when we first
started rejuvenating the tea estate and designing the factory, it
made sense to keep the various aspects of our operations separate
and to bring in minority shareholders to assist with financing and
Shamile community relations. Now that we are set to commence
production and sales, it makes more business sense to consolidate
and streamline our operations. This move will result in a
marked reduction in overhead, greater margins, and a significant
tax savings. The acquisition also means that once we are generating
income from our South Africa operations, we get to keep a much
greater percentage of it."
The Company's South African holdings consist of Dunn Roman,
which is now owned 100% by Plandaí, Breakwood Trading 22 (Pty)
Ltd.; which operates the Senteeko Tea estate to grow the green tea
and of which Plandaí owns 74%; and Green Gold Biotechnologies (Pty)
Ltd, which operates the extraction facility and of which Plandaí
now owns 84%. The remaining ownership is held by the Shamile
tribal community in accordance with the long-term notarial lease
agreement. Plandaí issued a total of 1,050,000 restricted
common shares to acquire the remaining 18% interest in Dunn Roman
and an additional 10% interest in Green Gold.
About Plandaí
Biotechnology, Inc.
Plandaí Biotechnology, Inc. and its subsidiaries develop highly
bioavailable, phytonutrient rich extracts which are being utilized
to deliver a new family of drugs to safely and affordably treat a
multitude of diseases and conditions. Plandaí Biotechnology
controls every aspect of the process, from growing the raw
materials on its farms in South Africa, to producing its patented
Phytofare™ extracts in-house, allowing the Company to guarantee the
continuity of supply as well as quality control throughout the
entire process. Targeted industries for the Company's products
include beverage, cosmeceutical, wellness, nutraceutical,
anti-aging, and pharmaceutical. For more information, please
visit http://www.plandaibiotech.com.
Contact: Andrew Beyer Phone: 619-202-7456 Email:
investor@Plandaíbiotech.com
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