$PLPL Merger Play Heating UpPlandaí Biotechnology, Inc. (OTC: PLPL) is emerging as one of the OTC’s hottest plays after gaining almost 150% this month. This run was mainly triggered by PLPL signing an LOI to acquire the license of a revolutionary blood filtration system. Given that this device is already approved by the FDA, PLPL could turn profitable once this deal is finalized. With the company settling its debt, PLPL stock could be one of the best OTC stocks this year.
PLPL Fundamentals
As a shell company, PLPL has been actively seeking to merge with a company with growth potential for a while. This wait, however, could be over since PLPL entered into an LOI with PuriBlood to receive the license rights of its Leukocyte Reduction Blood Filtration System. This system was developed to ensure the quality of blood used for transfusions. To facilitate this, the system removes leukocytes from blood to eliminate acute or delayed adverse transfusion reactions which could lead to death in some cases.
Through this system, PLPL has a major opportunity in this market since 30 countries require leuko-reduction in blood supplies. Although there are similar systems to PuriBlood’s, PLPL would have a competitive advantage as PuriBlood’s system is able to reduce leukocytes in blood by 99% at a much lower cost than other competitors. Moreover, the system retains a high level of red blood cells which is desirable. Considering this system’s potential, PLPL stock could be one to add at its current low PPS as it could skyrocket in the future.
According to this agreement, PLPL will receive the system’s license from Jessie Chang – the holder of the system’s global rights – through entities she controls. This license will cover the system in the North, Central, and South American Markets for 30 years. If the deal is successful, Chang will assume control of PLPL as the company’s director, president, and CEO. Meanwhile, Chang will appoint a new BOD and a BOA including experts in business and finance. In light of this, many investors are bullish on PLPL stock’s future prospects as the new BOD is expected to be experienced in this new business.
With this in mind, many investors are speculating this deal will lead to PLPL reverse merging with PuriBlood since it has already been expanding its reach globally. Over the past year, PuriBlood registered its products in new markets including Thailand, Indonesia, Singapore, and Malaysia. At the same time, PuriBlood applied to register its product in the Philippines, Bangladesh, Jordan, Egypt, Colombia, Pakistan, and Vietnam.
Based on this focus on expanding globally, PuriBlood could be looking to expand its reach in the US. On that note, PuriBlood’s revolutionary device is already patented in the US and is cleared for marketing by the FDA under section 501K. Meanwhile, PuriBlood has more than 36 patents which could be utilized in creating new products in the future. In this way, a reverse merger with PuriBlood could make PLPL stock a profitable long-term hold for many investors.
By receiving the license for PuriBlood’s system, PLPL could have the potential to secure a share in the growing leukapheresis market which is mainly driven by the growth in blood donations and blood diseases. Based on this, industry analysts project continued growth in the industry as more technologies and products are introduced. In a report by Quince Market Insights, the research company expects the leukapheresis market to grow at a CAGR of 43.9% until 2030. Considering the growth potential of this market, PLPL stock could be poised for major growth in the future.
While the company was preparing to merge with a company, PLPL has been active in settling its legacy debt under its previous management. The most notable debt was a $6.9 million note with Berkshire Capital Management Co which the company defaulted on. As this debt was detrimental to the company’s future, PLPL’s management executed a settlement agreement with Berkshire Capital where it was released from all obligations to pay principal and accrued interest under this note. PLPL was also able to deal with its final legacy debt with EMA Financial when an accredited investor purchased this debt in a private transaction. As a result, this debt will be resolved under friendly terms since the investor shares the same long-term vision of the company.
Moreover, PLPL received major news recently after the SEC canceled civil penalties worth $200 thousand related to a 2018 action against the company’s previous management. As the company has been working to resolve its legacy debt issues over the past two years, PLPL has the potential to grow financially in the future since it eliminated its debt. With this in mind, PLPL is currently in the process of engaging an audit firm to complete a two year audit to become SEC reporting. In light of these efforts, PLPL stock is on track to become one of the OTC’s best stocks this year.
Technical Analysis
PLPL stock is currently trading at $.0015 and has supports at .0009, .0006, and .0003. The stock also shows resistances near .0014 and .0018. After running 150% over this month so far, PLPL stock is becoming one of the hottest plays in the OTC based on its deal with PuriBlood. The company will likely release updates regarding its LOI soon which could help push the stock to new highs. It is worth noting that PLPL stock recently dropped below the VWAP which could signal a drop to its supports which may be a better entry point.
Considering PLPL’s recent run to $.0021, accumulation is trending downwards as investors take profit. Meanwhile, the MACD is bearish. The RSI is holding at 56 indicating the stock is cooling off from its run, leaving room for another leg up. As is, PLPL has an OS of 7 billion and a float of 6.4 billion.
PLPL Stock Forecast
Venturing into a new business, PLPL stock is one of the hottest stocks this month after signing an LOI with PuriBlood. Considering the potential of PuriBlood’s system in its market, PLPL could be set for financial growth as it will own the system’s license in North, Central, and South America. Given that the system is already patented in the US and cleared for marketing by the FDA, PLPL could become profitable once the deal is closed.
With a new management team joining PLPL after the closure of the deal, investors are bullish the company could emerge as a leader in the leukapheresis market since the incoming management will be experienced in this industry. With this in mind, investors are speculating PLPL could reverse merge with PuriBlood since the latter has already been expanding its system’s offering globally. In that case, PLPL could be well-positioned to capitalize on PuriBlood’s 36 patents for developing new products. As the company settled its legacy debt from the previous management, PLPL stock forecast appears to be brighter than ever.
