SEATTLE, May 7, 2012 (GLOBE NEWSWIRE) -- Plandai Biotechnology, Inc., a producer of highly bioavailable plant extracts, today filed a Form 8-K with the Securities and Exchange Commission announcing that it has executed the final loan documents with the Land and Agriculture Bank of South Africa. The total amount of the loan is 100 million Rand (US $13 million).
Plandai Chairman and Chief Executive Officer, Roger Duffield, commented, "Closing this loan is a significant milestone for Plandai because it provides us with the capital necessary to move immediately into production of our highly bioavailable Green Tea extract without causing any dilution to our shareholders. Since first receiving approval for the loan from the Land Bank in December 2011, we have worked diligently to gather the necessary legal documents and ensure compliance with the loan terms. Gratefully, that patience and effort has finally paid off."
In discussing the use of proceeds from the loan, Mr. Duffield added, "We are working on a very short time table in order to reach our goal of having product market ready by early 2013. We have already contracted with our USA engineering partner, CRS Technologies Inc. Delaware, to commence the manufacture of our first hydrodynamic processing and extraction system, in order that we can begin the first commercial, bioavailable Green Tea catechin extract production by the end of the year. At the same time, we have begun work on our Senteeko tea estate to make sure there is suitable and adequate green tea crop available in the last quarter 2012. True to the purpose of the Land Bank loan, we will be employing many of the local Shamile community members to help in the farming and extraction process."
The Land and Agriculture Bank of South Africa (http://www.landbank.co.za/) is a specialist agricultural bank guided by a government mandate to provide financial services to the commercial farming sector and to agri-business and to facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds.
About Plandai Biotechnology, Inc.
Plandai Biotechnology, Inc. focuses on the farming of whole fruits, vegetables and live plant material and the production of proprietary functional foods and botanical extracts for the health and wellness industry. Its principle holdings consist of land, farms and infrastructure in South Africa. Web site: http://www.plandaibiotech.com/
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