Plandaí Biotechnology, Inc., through majority-owned subsidiaries of Dunn Roman Holdings, Inc., has executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa.
Plandaí Chairman and Chief Executive Officer, Roger Duffield, commented, "Closing this loan is a significant milestone for Plandaí 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.
The total loan is actually comprised of multiple agreements totaling, between Green Gold Biotechnologies (Pty) Ltd. and Breakwood Trading 22(Pty) Ltd., 100 million rand. The loans all bear interest at the rate of prime plus 0.5% per annum and are all due in seven years. In addition, the loans have a 25-month "holiday" in which no payments or interest are due until 25 months after the first drawn down of funds. The loans are collateralized by the assets and operations, including the Senteeko lease, agriculture production and receivables, of Dunn Roman Holdings, which is the African operating arm of Plandaí. In addition, Dunn Roman Holdings was required to grant a 15% profit share agreement to the Land Bank which extends through the duration of the loan agreements (7 years unless pre-paid). The profit share agreement extends only to profits generated by Dunn Roman Holdings exclusive of operations of Plandaí and outside of South Africa.
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Plandaí Biotechnology and all of its subsidiaries are committed to ensuring that all of our employees enjoy working for us. This means that it is our responsibility to create a work environment that is conducive to achieving this aim, as per our credo
Furthermore, we intend to introduce programs that will allow us to identify and nurture the brightest young talent and push them to succeed, nurturing tomorrow's market leaders.
However, since our farming enterprises operate in South Africa, we are fully aware that our responsibility extends far beyond the norm. And with that in mind we are continually looking at all the ways in which we can impact the community for the better.
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