Plant Health Care (PHC ) confirmed to investors its plans to commence trading on the US OTCQB Venture Market as part of its aim to increase investor relations effort in the region.
The OTCQB, also called "The Venture Market," was created in 2010 and is recognised as an Established Public Market by the U.S. Securities and Exchange Commission (the "SEC").
As a verified market with efficient access to U.S. investors, OTCQB aims to help companies build shareholder value with a goal of enhancing liquidity and achieving a fair valuation.
PHC, which provides patent-protected biological products to global agriculture markets, expects the listing to increase visibility, broaden its shareholder base and improve liquidity.
Chris Richards, CEO of Plant Health Care, commented: "The USA represents the single largest opportunity for Plant Health Care products. Sales of Harpin αβ in the corn and specialty crop (fruit and vegetable) markets in the USA are growing rapidly.”
In particular, Richards told investors that the US represents “a major target market” for the Company’s core PREtec technology which induces natural defensive and metabolic responses in crop plants, helping to reduce harm from stresses during the growing season.
The Group is now in the process of obtaining US registrations for its new PREtec biopesticide products, PHC279 and PHC949, which are anticipated in 2020 and 2023, respectively.
Last week, Plant Health Care confirmed to investors that the regulatory submission of PHC279 in the US currently remains “on track” with its approval expected later in 3Q22.
Richards highlighted to shareholders that as a US-headquartered company, the USA is a natural place for Plant Health Care to seek new investors. He explained, “The OTCQB listing will make it significantly easier for US investors to transact in Plant Health Care stock.”
Jonathan Dickson, VP of International Corporate Services at OTC Markets, said: "We are delighted to welcome Plant Health Care to the OTCQB Venture Market. With its primary listing remaining on London's AIM, the OTCQB Market's cross-trading facility will allow Plant Health Care to broaden its horizons and provide investors in the United States with the ability to access the Company's Ordinary Shares in U.S. dollars and during U.S. market hours."
Plant Health Care expects to announce its interim results to 30 June 2021 in early September 2021.
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In a recent update for the six months to 30 June 2021, Plant Health Care said it expects trading for the full year to be in line with management expectations as sales remain solid.
In a research note, Arden Partners said 1H21 has come “with a trajectory of demand which suggests a good second half to come, traditionally the seasonally stronger part of the year.”
PHC’s cash reserves at 30 June 2021 were $11.1m with $9.1m raised in March 2021 which is expected to accelerate the market entry of its biological products, PHC279 and PHC949.
Back in April 2021, Plant Health Care delivered year-on-year revenue growth to FY20 with the Group's commercial business turning profitable and cash flow positive for the first time.
Looking ahead, Plant Health Care said it is ‘well-positioned’ for growth in 2021 with Harpin αβ ‘gaining traction’ together with very strong distributor partners, it told investors.
‘Current high agricultural commodity prices are very supportive of grower investments in crops and new products, and the Group’s operations in the US through key distribution partners appear to have had a strong start to the year, continuing the trends from 2020,’ Arden wrote.
At the time, the Group also highlighted that its PREtec product pipeline is ‘looking stronger’ after PH279, which is now known and branded as Saori™, became the first product from the PREtec platform to be commercialised to receive federal approval for sale in Brazil.
According to data presented in today’s statement, Brazilian soybean farmers spent $2.85 bn on disease control in the 2019/20 season, around 90% of which was for ASR control.
PHC said it is set on ‘a highly ambitious plan’ with its current pipeline of PREtec products targeting markets with a value of more than $5bn. ‘With outstanding grower benefits and an excellent sustainability profile, we are confident of a bright future for PREtec products,’ it said.
Analysts at Arden remain positive on the stock with their research confirming a “huge market opportunity'' for PREtec, which it believes is only partly reflected in the current share price.
‘With continuing investment in the PREtec platform, the launch of Saori in Q4 2021 and new products being prepared for registration, the Group’s 2021 activities look to be moving along well and we anticipate good news flow over the coming quarter,’ the research firm noted.
Shares in Plant Health Care have increased by nearly 20% in value since the beginning of 2021. The stock was trading 4.56% higher this morning at 14.2p following the announcement.
London-listed Plant Health Care is a leading provider of proprietary agricultural biological products and technology solutions focused on improving crop performance.
Its commercial business is driven by sales of Harpin αß, a recombinant protein which acts as a powerful biostimulant, promoting the yield and quality of crops. PHC sells the proprietary soil treatment Myconate in selected countries and sells both Harpin αß and Myconate through specialist distributors globally. In Mexico, PHC distributes third-party biological products.
PHC utilises its PREtec platform to generate numerous products and it is focusing on three products targeting very large market opportunities with a value of more than $5bn.
The Group said these products are currently under evaluation with six potential commercial partners. Meanwhile, PHC also continues to evaluate further candidate products from its robust pipeline of development candidates for additional crops and indications.
In a trading update released in January 2021, the Group reported robust in-market sales growth of Harpin αβ with in-market sales in Brazil for sugarcane coming in at three times those of 2019, while in-market sales to corn came in at 1.8 times higher than the prior year.
Meanwhile, the Group hailed its progress in bringing the first products from the PREtec platform to market. It highlighted it is planning for initial commercial launch in Brazil during the second half of 2021.
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