Plandai Biotechnology, Inc. (OTCMKTS:PLPL) Bounces Back Up
At the start of February Plandai Biotechnology, Inc. (OTCMKTS:PLPL) made an unbelievable surge up the stockchart and reached an all-time high of $3.12 per share. Such an impressive feat though was only possible thanks to the combination of paid pumps, myriad of fluff PR releases and the overwhelming hype around the marijuana industry. Such factors can affect the movement of the stock for only so long and surely enough since then PLPL has been constantly losing positions reaching a low of $0.285 on June 17.
This week though investors seem to have drastically changed their sentiment towards the stock. On Monday it jumped by 14% which is certainly impressive but yesterday the stock simply exploded. In the six and a half hours of trading investors managed to shift 1.3 million shares, a number that is nearly 5 times higher than the average for the company. As a result of the buying frenzy PLPL soared by close to 33% and returned to $0.49 per share. Now the question is can the company continue recovering?
Well, there have been some positive developments recently. On June 2 they received a $1.3 million grant from the South African Department of Trade and Industry which is going to significantly improve their balance position. According to the latest quarterly report at the end of March PLPL had:
- $626 thousand cash
- $635 thousand total current assets
- $557 thousand total current liabilities
- $12 thousand revenues
- $3 million net loss
The company is still not ready to launch the Phytofare Catechin Complex as they must wait for the results of the bioavailability clinical trial conducted North West University in Potchefstroom, South Africa. At the same time according to a legal opinion letter delivered by the law firm of Hyman, Phelps & McNamara, P.C. Plandai can start marketing their product as a dietary supplement without applying for an approval by the FDA. If this opinion letter will results in PLPL finally launching a product remains to be seen. Meanwhile their cannabis operations have seen little to no progress with the company currently looking for a country that will allow them to conduct medical marijuana research.
PLPL remains as risky a choice as ever. The company is still paying Stock Market Media Group to create a steady stream of fluff PRs and their total compensation has now risen to $52 thousand. Another thing to consider is the fact that compared to 
the previous quarter PLPL‘s salaries and wages expenses have increase by $200 thousand and are currently standing at $1.1 million while at the same time they have paid exactly $800 thousand as consulting fees.
the previous quarter PLPL‘s salaries and wages expenses have increase by $200 thousand and are currently standing at $1.1 million while at the same time they have paid exactly $800 thousand as consulting fees. Yesterday the positive momentum behind the stock of Vape Holdings. Inc. (OTCMKTS:VAPE) gathered even more strength and at the end of the session the stock had gained the massive 49% at $3.1 per share. Neutra Corp. (OTCMKTS:NTRR) also had an extremely positive day with their stock surging up the chart by 35% and closing at $0.46.
