It’s been over a week since we last wrote about Plandai Biotechnology Inc (OTCMKTS:PLPL). Today we received the next batch of emails from SmallCapAllStars and Why Penny St0cks and we decided to see how they have been getting on while we were dealing some of their comrades in Pennyland.
Well, one thing definitely hasn’t changed – the awareness campaign. There are still press releases every now and then coming out of Stock House Group and Goldman Small Cap Research and they sound just as exciting as they did about a week ago. As we mentioned in our previous articles, these entities were paid to post their optimistic opinions and while their reports do appear on the PLPL‘s profile on Yahoo Finance, they don’t contain any actual news around the company.
The news came from PLPL themselves when they announced that they have conducted some testing and they found that their Phytofare extracts will be able to cure malaria some day. Of course, the PR is furnished with the appropriate amount of Latin words, statistics and forward-looking optimism.
In the interest if fairness, we should point out that it’s not been all PR effort for PLPL. They also managed to put together and file their latest quarterly report for the period that ended on March 31 and needless to say, we were eager to open it and see what we’ve got. Here’s how things stand:
- cash: $574 thousand
- current assets: $593 thousand
- current liabilities: $680 thousand
- quarterly revenue: $65 thousand
- quarterly net loss: $1 million
Sure enough, a comparison with the previous report is inevitable and when made, you will see that between December 31, 2012 and March 31, 2013 they managed to:
- spend more than half of their money
- increase their current and long-term liabilities
- halve the revenues
- double the net loss
“Things are not looking good”, you’re probably thinking and indeed, the report looks worse than the one before it, but (and we know that we rarely get to say that) PLPL‘s financial situation is not the most important thing at the moment.
As you probably know, they are putting their money on their revolutionary technology for the production of botanical extracts. They say that they plan to get the revenues going by selling those extracts, but the reality is that before they can do that, they will first need to build a full-size manufacturing facility.
The slowly diminishing revenues that you see in the financial statements are actually coming from the sales of timber and agricultural products produced in their South African plantations, and having in mind that things don’t seem to be looking that good, the success of the extracts could prove to be crucial for the survival of the company.
The latest report as well as the one for the last quarter of 2012 quote Fall 2013 as the deadline for completion of the manufacturing facility and until the sales start, we can’t really be sure how successful an investment PLPL could turn out to be. That is a fact that the pumpers fail to mention, but we reckon that it’s quite important to have it in mind before jumping in on optimism alone.