Boston, MA 02/24/2014 (wallstreetpr) -Plandai Biotechnology Inc (OTCMKTS:PLPL)’s financial position is very weak but its market has recently opened up and the company may be able to turn the tables.
New VP Joins:
To take advantage of the vast potential, Plandai Biotechnology Inc (OTCMKTS:PLPL) announced that they have appointed Jamen Shively as Vice President Global Marketing. The company produces bioavailable plant extracts for health, pharmaceutical and wellness industry segments. The company is also into the marijuana business. This segment has a very great potential as sales are now allowed in 20 states and one district within the United States. Though these states had legalized the use of marijuana, federal laws ensured that the retail sales for recreational purposes could not take off. Now that the federal laws have been watered down to some extent, the sales have started off.
Jamen Shively is a leading voice in this industry and he will help the company set up its retail operations. He will also help the company in building brand awareness and building marketing strategies for its other products, particularly the Phyofare range of botanical extracts such as the Limonoid Glycoside Complex and the Green Tea Catechin Complex.
Poor Financial Health:
In spite of such good news, the financial condition of the company is not very good. The financial results for December ending quarter show the extent of the position. At the end of the quarter, Plandai Biotechnology Inc (OTCMKTS:PLPL) has cash and cash equivalents of just $131,000 while the current liabilities stand at $2.6 million. With revenues of just $13,000, the net loss stood at $3.3 million. As against these figures, the company had managed revenues of $227,000 in the September ending quarter and had cash and cash equivalents of $375,000. It managed to reduce the current liabilities in the fourth quarter from $13.1 million recorded in the third quarter. Net loss stood at $753,000 in the third quarter.
The numbers mean that time is running out fast for Plandai Biotechnology Inc (OTCMKTS:PLPL). It needs to improve on its cash position and also increase its revenues drastically just to stay afloat.
