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Plant Health Care PLC
(AIM: PHC)
September 19, 2018
Prominent Plant Biologicals Provider
Plant Health Care PLC (the “Company”, “Plant Health Care”, “PHC”) is a US-based
company, providing proprietary agricultural technology solutions and biological
products to enhance plant health and yields. The Company has two business
segments, Commercial and New Technology. The Commercial business sells
patented biological products across geographic areas such as the Americas,
Europe and South Africa, and is generating revenues of over $7 million per year.
The New Technology business focuses on the development of proprietary
biological solutions that can be both complementary to or substitutes for
conventional agrochemicals (pesticides). The Company has successfully created
three proprietary biological platforms (Innatus
™
3G, Y-Max 3G and T-Rex 3G),
which are under various stages of evaluation by its agricultural partners.
Investment Rationale
Commercial Business grew 21% Year-Over-Year in 2017
The Company’s Commercial business, which sells patented biological products for
enriched crop performance, is growing rapidly. The Commercial business
generated $7.7 million revenue for FY 2017 (ending December 31, 2017,
representing a 21% Y-o-Y increase from FY 2016. Specifically, the sale of Harpin
αβ products, which represented 63% of the Company’s total sales in 2017, has
grown at a 23% CAGR between FY2013 and FY2017. At present, the Company’s
products are sold in more than 14 countries and is poised for expansion into more
countries in 2018. The Company’s Harpin αβ products have increased the yield of
US corn and soybeans by 3-5%. Further, demonstration field trials of Harpin αβ in
sugarcane fields have resulted in average yield increases of over 20%. Harpin αβ
is also sold in fruit and vegetable crops such as citrus, tomatoes, peppers and
potatoes, resulting in significant yield increases. The effectiveness of the
Company’s products in yield improvement and disease resistance in crop plants is
helping drive its sales globally. In February 2018, the Company launched its Harpin
αβ product in the promising Brazilian sugarcane market and generated $400,000 in
revenue from February 2018 to June 2018. Brazil has 10 million hectares of
sugarcane crop and is the world’s largest producer of sugarcane. The Company
has potential to gain 2.5 - 5% market share in the Brazilian sugarcane market over
the next four years. The Company was awarded a contract in the US and also
expects to launch Harpin αβ for US corn seed treatment and anticipates initial
sales in H2-2018. Further, the Company also expects to launch its Harpin product
for coffee in Brazil during the 2019/2020 growing season. With these recent
favorable events, the Company expects 30% Y-o-Y revenue growth in FY2018.
Successful Partnerships should help New Technology Business growth
The Company has signed agreements with nine agricultural/seed companies,
including all the major, global industry leaders, for evaluation of its PREtec
platforms. These evaluations include assessing the Innatus 3G platform for usage
along with their agrochemical products (pesticides) for improved disease
resistance and yield enhancements in soybean and corn. Past field trials
conducted by and on behalf of the Company between 2013 and 2016 have shown
that the application of Innatus 3G to crops, after treatment with a conventional
agrochemical, resulted in superior pest protection and crop yields. The field trials in
soybean and corn crops conducted by the Company in 2013-2016 resulted in an
average yield increase of approximately 7.6 Bu/ac (Bushels/acre) in corn and 1.8
Bu/ac in soybean. Such successful field trials strengthen the commercialization
prospects of the Company’s Innatus 3G platform.
Price (Sept 18, 2018): £0.184
Beta: -0.46
Price/Sales: 4.14x
Debt/Equity Ratio: 0.08
Listed Exchange: AIM
Source: Yahoo Finance
Recent News
30-Jul-2018: Usage of PHC’s Harpin αβ in sugarcane
crop in Brazil, sold under the brand name H2Copla,
generated revenues of $400,000 since its launch in
February 2018. PHC now plans to launch Harpin αβ in
coffee during the 2019/2020 growing season.
16-Jul-2018: In February 2018, PHC launched Harpin αβ
in sugarcane in Brazil, supported by demonstration plot
yield increase of 20% or more. Awarded contract for a
Harpin αβ product to be used on corn in the US, with
significant first sales expected in H2 2018.
30-May-2018: Granted a total of 1,860,104 options to Dr.
Christopher Richards and 467,538 options to Dr. Richard
Webb.
10-Apr-2018: Revenues increased by 21% YOY to $7.7
million for the year ended December 31, 2017, due to
strong sales growth in South Africa and Spain, 104% and
60%, respectively. The Company’s gross margin was
healthy at 62%.
27-Feb-2018: Raised £5.0 million (USD $6.7 million)
through the issuance of an aggregate 25 million new
ordinary shares.
12-Dec-2017: Signed an agreement with a fifth major
agricultural/seed company for evaluation of its Innatus 3G
platform.
Fully Diluted Shares Outstanding: 184.85 million
Common shares Outstanding: 172.82 million
Market Cap: £31.79 million
52 Week High: £0.28
52 Week Low: £0.135
Note: All $ symbols represent US dollars (USD), unless
otherwise specified. Share price & market cap are in GBp.
www.RBMILESTONE.com
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Plant Health Care PLC
Experienced Management Team
Plant Health Care’s board of Directors and management team has strong knowledge and expertise in the plant biologicals and
agrochemical industry. Dr. Christopher Richards, the Executive Chairman and Interim Chief Executive Officer of the Company, has
more than 30 years of experience in various life science and agrochemical companies. He has held senior-level positions in
companies such as Syngenta, Arysta LifeScience and Dechra Pharmaceuticals. Prior to joining Plant Health Care, Dr. Richards was
CEO of Arysta LifeScience. Mr. Michael J. Higgins, a Senior Independent Director of the Company, has more than ten years of
experience in advising small and mid-sized publicly traded companies. Prior to joining Plant Health Care, he served as a senior
advisor at KPMG. Further, Dr. Richard H. Webb, an Executive Director of the Company, has significant experience in handling
laboratory discovery and field development of pesticides. He has held various senior level positions at companies including ICI and
Zeneca Agrochemicals. Finally, Mr. William M. Lewis, a Non-executive Director of the Company, has significant experience in the
agrochemical business. He has held senior roles at companies such as Syngenta Crop Protection, Arysta LifeScience and
Zeneca/ICI.
Biologicals industry growth augments future revenue prospects
Plant Health Care's operations are well supported by favorable growth trends in the plant biologicals industry. According to Dunham
Trimmer, a market research firm, the global biologicals market is projected to grow from $5.7 billion in 2016 to $9.1 billion by 2020,
representing an attractive 12% CAGR. Factors such as increasing global population, declining arable land per person, falling yields
and increasing pest resistance to conventional agrochemicals (pesticides) are driving demand of plant biologicals. Further,
biologicals are now well positioned to gain market share from conventional agrochemicals. Biologicals provide more benefits than
conventional agrochemical solutions because they are non-toxic and are more environmentally friendly. Biologicals can also provide
a superior pest control in plants than agrochemicals. Such advantages may drive significant adoption for biologicals among crop
growers.
Company Overview
Business
Plant Health Care PLC provides patented biological products and solutions to global agricultural markets. The Company’s biological
products are offered to improve the yield and vigor of various field and specialty crops. PHC’s biological products are
environmentally friendly and hence are well-positioned to take advantage of the long-term growth trends for natural agricultural
solutions. The Company’s products have been in use or undergoing trials at numerous locations across the world as seen in Exhibit
1. PHC also has a dedicated research and development program that continues to develop innovative agricultural solutions in crop
health, disease resistance and establish potential synergies with various agrochemical companies. Exhibit 2 shows an overview of
the company’s business segments and product offerings. As discussed earlier, the Company operates in two strategic business
segments namely, Commercial and New Technology.
Exhibit 1: PHC’s worldwide presence
Source: Company Investor Presentation
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Plant Health Care PLC
Exhibit 2: PHC Business
Source: Company Investor Presentation
Commercial Business - Recent growth shows plenty of promise
The Company’s Commercial business sells patented biological products, including biofertilizers and biostimulants. The Company
also distributes third party complementary products for improved crop performance in Mexico. The Company’s biological products
are known to enhance the plant’s natural physiological process, resulting in superior yield and plant health. PHC’s proprietary
biological products fall under two major technologies, Harpin technology and Myconate technology. The Company sells N-Hibit
®
,
ProAct
®
and Employ
®
products under the Harpin technology and Myconate
®
product under the Myconate technology. The
Company’s products are currently sold across three primary geographical areas, namely the Americas, Mexico and EMEA.
For the year ended December 2017, the Company’s Commercial business generated $7.7 million in revenue, an increase of 21%,
compared to $6.3 million in 2016. The Company’s proprietary biological products accounted for 69% of the sales in 2017, compared
to 59% in 2016. The Company is currently on track to achieve full year revenue expectations, which would represent a 30% Y-O-Y
revenue growth in FY2018.
Exhibit 3 shows sales growth from 2014 to 2017 across its geographical areas.
Exhibit 3: Commercial business sales across its geographical areas
Source: Company Investor Presentation
Plant Health Care
Business
Commercial
Harpin technology
Myconate technology
New Technology
Innatus 3G
T-Rex 3G
Y-Max 3G
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Plant Health Care PLC
Harpin technology - an effective biological solution for crop vigor using Harpin αβ
Harpin proteins are produced naturally by certain bacterial plant pathogens. Harpin αβ is a recombinant protein developed by the
Company. On contact with a crop plant, Harpin αβ elicits the plant's natural growth and immune responses such as Hypersensitivity
Response (HR) and System Acquired Response (SAR). HR prevents the spread of pathogen infection in plants, while SAR creates
a plant-wide resistance to pathogen attack.
The Company’s Harpin αβ protein activates the self-defense mechanisms in plants for improved crop performance. Through a
Harpin αβ product application, the plant’s growth and immune responses (HR and SAR) are activated artificially. The plant responds
by increasing its photosynthesis and generates extra energy to resist the mimicked pathogen attack. This extra energy is further
utilized in reducing stress levels and improving crop yields. Harpin αβ application therefore results in improved yield, crop quality
and extended shelf life. Further, since Harpin αβ does not interact directly with pathogens, the pathogens are not expected to
develop resistance to the Harpin αβ application, unlike conventional pesticides. Harpin αβ can be used in crop plants either as a
seed treatment or as a foliar application. Exhibit 4 describes the Harpin technology and plant response to the application of Harpin
technology.
Exhibit 4: Plant’s response to Harpin application
Source: Company Investor Presentation
Harpin αβ products
PHC sells three Harpin αβ products namely N-Hibit (seed treatment), ProAct and Employ (foliar application).
• N-Hibit HX-209 - N-Hibit HX-209 is a seed treatment product that can be applied before planting. N-Hibit works by activating the
plant’s internal defense mechanisms. N-Hibit usage in row crops such as corn, soybeans and cotton has resulted in improved
plant health, fewer nematodes and strong yield.
• ProAct - ProAct is a foliar treatment product for row crops. ProAct activates the SAR response and improves self-defense
mechanisms in plants. Numerous studies and trials have shown that ProAct usage in plants reduced nematode problems and
improved crop yield.
• Employ - Employ is a foliar treatment product for specialty crops. The usage of Employ also results in increased yield, extended
shelf life, reduced nematode production and better plant recovery.
Harpin αβ sales grew at an attractive 23% CAGR between 2013 and 2017
In 2017, the sale of PHC’s Harpin αβ products generated $4.8 million in revenue and accounted for approximately 63% of the total
revenue. Harpin αβ product sales have grown at an attractive 23% CAGR between 2013 and 2017. Exhibit 5 shows Harpin product
sales between 2013 and 2017. PHC’s Harpin αβ products are sold in more than 14 countries and have treated vast acres of row and
specialty crop fields to date (in excess of 12 million acres). Harpin αβ usage has demonstrated yield increases of approximately 3-
5% in US corn and soybeans. Further, use of Harpin αβ has increased on table grapes, rice, potatoes and citrus fruits. These
improved yield results and disease protection are driving Harpin αβ adoption globally. PHC is also developing Harpin αβ for the
treatment of various other crops. The Company aims to expand its market share by developing Harpin-based products for new crops
and by entering into new markets.
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Plant Health Care PLC
Recently, in 2018, after three years of extensive trials, Harpin αβ was launched in Brazil for sugarcane treatment. Field trials
conducted in both ratoon cane (cane that grows back after harvest) and newly planted cane demonstrated positive yield increases.
For instance, single applications of a low dose (100 g per Ha) Harpin αβ at six to eight weeks post-harvest in ratoon cane resulted in
significant yield increase of 10-29%. The Company views the Brazilian sugarcane market as a high revenue potential segment.
Further, the Company has been awarded a contract to supply Harpin αβ for corn seed treatment in the US. The Company now
expects first sales in the second half of 2018. In addition, the Company also plans to launch Harpin αβ in coffee during the
2019/2020 growing season in Brazil. The Company is currently working on testing the product for use in coffee in Brazil. The
Company owns and licenses patent rights covering a variety of claims. Patents covering the Harpin αβ products will continue in
force through 2027.
Exhibit 5: Harpin αβ (sales in ‘000s)
Source: Company Investor Presentation
Brazil Sugarcane Market - High revenue potential for Harpin αβ application
To quantify the business opportunity, we now discuss the Brazilian sugarcane market. Brazil is the world’s largest producer of
sugarcane and has 10 million hectares (ha) of sugarcane fields. Further, estimates reveal that approximately 60% of the country’s
sugarcane production is in Sao Paulo as shown in Exhibit 6. In February 2018, PHC launched Harpin αβ (H2Copla) for sugarcane
treatment in Brazil, through its distributor Coplacana. Coplacana is a leading sugarcane co-operative in Sao Paulo, with more than
50% of the state’s agrochemical market share. This presents a lucrative distribution opportunity for PHC to gain market share in the
Sao Paulo sugarcane market. H2Copla sales generated revenue of $400,000 since the launch of the product in February 2018 to
June 2018. The initial customer feedback has been strong, and the Company expects significant demand growth in H2 2018 and the
following years. Based on these promising initial sales, there is potential for PHC to gain a 2.5% market share (or $5 million in
revenue) over a four-year period.
Exhibit 6: Sugarcane production in Brazil
Source: Company Investor Presentation
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Plant Health Care PLC
Myconate technology – ensures well developed Mycorrhiza
Mycorrhiza is a naturally occurring symbiotic association between a plant and a set of soil organisms termed as mycorrhizal fungi (or
Mycorrhizae). Mycorrhizae colonize the plant’s root system and transport essential soil nutrients and water needed for the plant’s
growth. A well-developed mycorrhizal system increases the surface area of roots available for plant growth. This could extract more
soil nutrients and water from the soil, which the plant could not access normally, resulting in superior plant health and yield. PHC's
Myconate technology is a proven yield enriching technology, which uses stimulants to strengthen the plant’s mycorrhizal system.
Myconate
PHC sells Myconate (Mycorrhizal stimulant) product under its Myconate technology. PHC’s Myconate is a soil enrichment product
that produces enhanced mycorrhizal network in plants. Myconate contains isoflavone formononetin, a naturally occurring compound,
which stimulates colonization of Vesicular-Arbuscular Mycorrhizal (VAM) fungi (a root symbiont) in the plant’s root system. The
application of Myconate produces healthier, high-yielding plants even in dry/poor soil conditions. Myconate product sales were
$455,000 for FY2017, representing 28% Y-o-Y increase compared to the same period in 2016. Exhibit 7 shows Myconate product
sales between 2013 and 2017. Patents covering Myconate will continue to expire through 2031. The Myconate product can be used
in a wide variety of agricultural (cereals, cotton, corn, peanut, rice, sorghum, soybean, sunflower) and vegetable crops (carrots,
tomato, lettuce, beans, cucurbits, peas, onion, pepper) either as a seed treatment or a soil treatment.
Exhibit 7: Myconate Sales (in $US & ‘000s)
Source: Company Investor Presentation
New Technology
PHC’s New Technology is focused on the development and licensing of its proprietary Plant Response Elicitor technology (PREtec)
platforms. The Company’s PREtec platforms increase crop plant yield and aid in disease resistance. The Company has successfully
delivered three proprietary 3G (third generation-small peptides) PREtec platforms, namely Innatus 3G, T-Rex 3G and Y-Max 3G, for
evaluation by its partners. The Company intends to convert these platforms into products by collaborating with major agricultural
companies for further development and commercialization. As of April 2018, evaluation agreements have been signed with nine
companies (including five major agricultural/seed companies) for field trials. The Company has recently focused its resources on
Brazil, evaluating its products in field trials and advanced technical evaluation. Outside of the Brazilian field trials, in July 2018, the
Company reported that three of its partners have reported positive results in a range of more than 10 crops, uses and regions.
These partners and the Company are now discussing trials of PREtec across a variety of specialty and broad-acre crops. The
Company’s peptide platforms can be used for a wide range of crops such as arable crops (corn and soybean) and specialty crops
(fruits and vegetables). Further, the Company’s 4G (fourth generation) peptide platforms are in early stages of development today.
These platforms are applications of DNA or RNA forms of PREtec in agriculture and plant breeding.
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Plant Health Care PLC
PREtec - A Promising Agricultural Technology
Plant Response Elicitor technology (PREtec) is a bio-rational (non-toxic) agricultural technology that selectively activates the growth
and self-defense mechanisms in crop plants. PREtec protects crop plants from abiotic stresses such as drought and diseases during
their growing season. A PREtec peptide platform consists of a combination of related peptides (short proteins or chains of amino
acids linked by a peptide bond) that mimic the naturally occurring larger proteins to which plants respond defensively. These
peptides, on contact with the plant’s cell membrane, function as a signal molecule and elicit a specific defensive response
determined by its molecular structure. The Company has identified and developed selective lead peptides with wide agronomic
benefits such as yield enhancements, pest resistance and crop quality. The Company’s PREtec peptides are less toxic and rapidly
bio-degradable than conventional agrochemicals. In addition, the Company has also gained significant expertise in modifying the
peptide sequences for improved biological performance.
Exhibit 8 displays the PREtec technology mechanism and Exhibit 9 shows some key competitive advantages of PREtec platforms.
Exhibit 8: Plant Response Elicitor Technology
Source: Company Investor Presentation
Exhibit 9: PREtec - Key Competitive Advantages
Source: Company Investor Presentation
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Plant Health Care PLC
PHC proprietary PREtec platforms
Exhibit 10 and 11 shows the company’s three proprietary PREtec platforms (Innatus 3G, T-Rex 3G and Y-Max 3G), the lead
peptides in each platform and their performance focus. The Company has identified eight lead peptides for various disease
resistance and crop yield benefits. The Company is now also working on multiple peptide variants for enhanced crop performance.
Exhibit 10: PREtec Technology Platforms
Source: Company Investor Presentation
Exhibit 11: New Technology Platforms
3G platform
Performance focus
Lead peptides
(synthetic → fermented product)
Partner trials started
Innatus 3G
Disease resistance, vigor, quality, yield
(Combat fungicide resistance in row
crops and enhance yield and quality)
PHC398 ~>PHC279
PHC296 ~>PHC863
PHC958 ~>PHC404
PHC180 ~>PHC148
2015
T-Rex 3G
Nematode, yield
PHC176 ~>PHC032
PHC097 ~>PHC949
2016
Y-Max 3G
Growth, roots, yield
PHC353 ~>PHC414
PHC326 ~>PHC535
2016
Source: Company Investor Presentation
Innatus 3G
Innatus 3G is a bio pesticide platform, which provides a range of crop protection and yield improvement benefits in plants. Innatus
3G peptides (PHC279, PHC863, PHC404, and PHC148) work by eliciting the Hypersensitive Response in treated plants. These
peptides are compatible with conventional agrochemicals (fungicides, nematicides and pesticides) and can be applied as either
foliar or seed treatment.
Initial field trials of Innatus 3G showed attractive crop yield increases
The initial field trials of Innatus 3G conducted by PHC and by university groups on corn and soybean seeds showed significant
agronomic benefits of improved disease resistance and strong yield increases in corn and soy. The field trials were conducted
between 2013 and 2016 across several locations in the US Midwest. 3G peptide treatments resulted in an average yield increase of
approximately 7.6 Bu/ac (Bushels/acre) in corn and 1.8 Bu/ac in soybean respectively. The corn and soybean seeds were first
treated with a conventional treatment (fungicides, nematicides, biologicals and insecticides) and then over treated with Innatus 3G
peptides. The results also demonstrated that the Innatus 3G peptides enhance the efficacy of the applied agrochemical in disease
control and yield protection. Exhibit 12 and Exhibit 13 show the summary of field trial results of corn seed treatment and soybean
seed treatments (each bar represents one trial location) respectively.
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Plant Health Care PLC
Exhibit 12: Corn Seed Treatment (Summary of results by location)
Source: Company Investor Presentation
Exhibit 13: Soybean Seed Treatment (Summary of results by location)
Source: Company Investor Presentation
10
Plant Health Care PLC
The Asian Soybean Rust (ASR) Control opportunity- a $1.7 billion fungicide market
Asian Soybean Rust (an endemic disease) has been a major problem for Brazilian soybean growers. Conventionally, fungicides are
applied to control ASR. In 2016, Brazilian farmers spent $1.7 billion on soybean fungicides. The application of conventional
fungicides often does not provide complete control due to ASR now developing resistance to such fungicides. The Company’s lead
peptide PHC279, on the other hand, also works on ASR that is resistant to conventional fungicides, and aids in improved disease
control and yield. Field trials of the PHC279 lead peptide, in combination with conventional fungicides for ASR, have shown to
increase disease control than conventional fungicide application alone. Exhibit 14 details the severity of ASR disease level for
various biologicals mixtures. Further, PHC279 peptide application also resulted in increased crop yield in laboratory tests.
Exhibit 14: PHC application for ASR resulted in improved disease control
Source: Company Investor Presentation
Field trials of Innatus 3G during the Brazilian 2017/2018 soybean crop season revealed average soybean yield increases of
6-7%
During the 2017/2018 soybean crop season, the Innatus 3G platform (lead peptide PHC279) was under advanced technical
evaluation and field testing by the top four Brazilian fungicide market leaders, which control more than 80% of the Brazilian market
share. Further, the Company has also teamed up with EMPRAPA, an esteemed Brazilian Government agricultural research
institution, to evaluate its Innatus 3G platform. The field testing during the 2017/18 season showed conventional fungicides worked
well in disease control, in contrast to previous years. Therefore, the Company’s Innatus 3G added only limited additional value to
disease control. However, the results revealed average yield increases of approximately 6-7% in Innatus 3G treated soybeans, even
at low application rates. The Company is in discussion with its partners to further undertake field trials during the next soybean crop
season. The Company also expects to test Innatus 3G platforms for both disease management and yield control benefits. Exhibits
15 and 16 detail the licensing timeline of PHC and the development timeline of the Innatus 3G PHC279 lead peptide respectively.
Exhibit 15: Licensing Timeline
Source: Company Investor Presentation
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Plant Health Care PLC
Exhibit 16: PHC lead peptide PHC279 development milestones
2016
2017
2018
Before 2021
Efficacy
Lab/Greenhouse
Evaluation field trials
Development field trials
Commercial sales
Ability to make
Synthesis
Bench-top fermentation
Pilot production
Commercial production
Regulatory
Fast track strategy
Submit package
Approval
Technology license
Competitive arena
In discussion with partners on plans for further trials in
South American soybeans
Completed
In Progress
Planned
Source: Company Investor Presentation and Press release on July 16, 2018
T-Rex 3G
T-Rex 3G is a nematode defense platform. Nematodes are parasitic organisms that feed on the plant’s root cells. Nematodes cause
damage to the plant’s root system and affect the plant’s overall health and vigor. T-Rex 3G controls the nematode occurrence by
stimulating the plant’s self-defense mechanisms. Trials of T-Rex 3G on soybean plants conducted in 2016 showed reduced
nematode problems.
Y-Max 3G
Y-Max 3G is a bio-stimulant platform (yield and growth platform). Field trials of the Y-Max 3G platform on corn and soybeans
showed that Y-Max 3G peptides improve the biomass and yield of the crop plants.
2018-2019 Milestones
PHC expects to generate significant cash flow from its Commercial business by expanding its market share in its existing markets
and entering new markets. In its New Technology business, the Company continues to have high confidence in the value of PREtec
and is actively pursuing opportunities to monetise it..
Exhibit 17: Milestones 2018-2019
Commercial
• Deliver market expectations for revenue and cash
• Generate cash from commercial operations and reduce cash burn
New Technology
• Actively pursuing opportunities to monetise PREtec platforms
The Company
• Generate cash from commercial operations and reduce cash burn. Cash positive in 2020.
Source: Company Investor Presentation
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Plant Health Care PLC
Company Timeline & Key Events
Exhibit 18 below shows the reverse chronological timeline of the evolution of Plant Health Care PLC, summarizing some key annual
events for the Company since 2015.
Exhibit 18: Timeline summarizing significant annual events since 2015
Dates
Events
30-July-18
PHC’s Harpin αβ in sugarcane sales in Brazil generated revenue of $400,000 since its launch in February 2018. Plans to launch
Harpin αβ in coffee during the 2019/2020 growing season.
16-July-18
In February 2018, PHC launched Harpin αβ in sugarcane in Brazil, supported by average demonstration plot yield increase of 20% or
more. Awarded contract for a Harpin αβ product to be used on corn in the USA, with significant first sales expected in H2 2018.
Results of field trials of Innatus 3G, added to chemical sprays for the control of Asian Soybean Rust (ASR) in Brazil indicated that
Innatus 3G increased soybean yield by 6-7%, even at low application rates.
30-May-18
Granted a total of 1,860,104 options to Dr. Christopher Richards and 467,538 options to Dr. Richard Webb.
10-April-18
Revenues increased by 21% YOY to $7.7 million for the year ended December 31, 2017, due to strong sales growth in South Africa
and Spain (up 104% and 60% respectively). Gross margin was stable at 62%.
27-Feb-18
Raised £5.0 million through issuance of an aggregate 25 million new ordinary shares.
12-Dec-17
Signed an agreement with a fifth major agricultural/seed company for evaluation of its Innatus 3G platform.
18-Sep-17
Revenues increased by 8% to $3.1 million for the six months ended June 30, 2017 compared to $2.9 million for the same period in
2016, due to strong sales growth in EMEAA. Sales for this region increased by 202% (231% respectively in constant currency).
Gross margin was stable at 58%.
12-Jul-17
Granted options for a total of 925,789 ordinary shares to Dr. Richard Webb, Executive Director.
10-Apr-17
Revenues decreased by 16% YOY to $6.3 million for the year ended December 31, 2016, due to lower sales in the US. Sales in the
US were down by $1.1 million. Gross margin was stable at 62%.
18-Jan-17
Extended the terms of evaluation contracts with its four Innatus 3G evaluation partners to 2018.
14-Dec-16
Established four new distribution arrangements for its commercial plant health products.
14-Sep-16
Revenues decreased by 9% to $2.9 million for the six months ended June 30, 2016, compared to $3.2 million for the same period in
2015. Gross margin decreased to 59% from 63% due to lower sales.
16-Aug-16
Raised $7.6 million through issuance of an aggregate 75,967,796 new ordinary shares.
8-Apr-16
Revenues increased by 9% YOY to $7.5 million for the year ended December 31, 2015, due to a $1.5 million increase in Harpin αβ
product sales. Gross margin increased to 62% in 2015 from 51% in 2014 due to lower manufacturing costs of Harpin αβ products.
02-Dec-15
Signed a new agreement with Sym-Agro Inc, (a leading biologicals company based in California) for the distribution of its Employ
®
and Myconate products in the western US agricultural markets.
25-Sep-15
Signed its third and fourth agreements with major agricultural industry companies for evaluation of its Innatus 3G platform.
14-Sep-15
Revenues marginally decreased by 3% to $3.2 million for the six months ended June 30, 2015 compared to $3.3 million for the same
period in 2014. Gross margin increased to 63% from 53% primarily due to higher pricing as well as lower cost of goods.
Source: Company filings
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Plant Health Care PLC
Industry Overview
The global agricultural industry is experiencing a major technological shift. Factors such as rapid population growth, declining arable
land per person, falling crop yields and climate change have created the need for innovative products and solutions to increase crop
yield and crop vitality. Besides the presence of conventional agricultural solutions, such as the usage of agrochemicals, genetic
modification of seeds and plant breeding, Biologicals are growingly seen as effective agricultural solutions for improved crop
performance. Biological solutions, in some cases, have even surpassed the benefits provided by conventional agricultural solutions.
Hence, the adoption of plant biologicals is growing significantly.
Biologicals – A natural agricultural solution for improved crop performance
Biologicals for agriculture are naturally occurring or synthetically derived compounds extracted from microorganisms, beneficial
insects, organic matter and others. Biologicals are known to positively influence the plant’s growth and self-defense mechanisms for
efficient pest management and higher productivity. Further, biologicals have a non-toxic mode of action, and hence are environment
friendly compared to conventional agrochemicals (pesticides such as fungicides, insecticides etc.). Since the concerns due to
pesticide residue in food produce are growing globally, biologicals are well positioned to gain market share from conventional
agrochemicals in the global agricultural market. Bio stimulants (plant growth biologicals) and Bio pesticides (pest resistant
biologicals) are the major categories of agricultural biologicals. Currently, biologicals are used in the production of a wide variety of
agricultural crops, including horticulture crops (fruits and vegetables) and row crops (corn, soybeans, wheat and others).
Growing population and declining arable land per person
According to “World Population Prospects: The 2017 Revision by UN Department of Economic and Social Affairs”, the world
population is estimated to grow to 9.8 billion in 2050 and 11.2 billion in 2100, from 7.6 billion, as of 21 June 2017. Further, the arable
land per person has been falling over the years and is projected to reach approximately 0.17 hectare per person in 2050. Exhibit 19
and 20 show the global population annual growth rates and declining arable land per person over the years.
Exhibit 19: Declining arable land per person
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2030 E
Source: UN Department of Economic and Social Affairs
14
Plant Health Care PLC
Exhibit 20: Population growing at a steady rate
0.00
0.50
1.00
1.50
2.00
2.50
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Global population growth (%)
Source: UN Department of Economic and Social Affairs
Increasing Pest Resistance to Conventional Agrochemicals should drive demand for Biologicals
Increasing pesticide resistance by plant pathogens has been a major problem in crop management. Pesticides have played a major
role in increasing crop yields over the years. Much of the average yield increases over the last four decades are predominantly due
to active pest control through the use of pesticides, rather than the increase in yield potentials; according to research papers Oerke,
E. C. 2006. Crop losses to pests and Cassman, K. G. 1999. Ecological intensification of cereal production systems: yield potential,
soil quality, and precision agriculture. However the yield growth is slowing, and in some cases (for certain crops or region), yields
have started to decline. Such fluctuations in crop yields could be related to cases where the pesticides are now deemed less
effective or ineffective. Increasing pesticide resistance by plant pathogens is one of the major factors leading to such inefficiencies in
agrochemicals usage. Biologicals are widely seen as innovative solutions to such agricultural problems. The usage of biologicals,
along with agrochemicals, could also improve the efficacy of the conventional agrochemical application. Further, the pests are also
not expected to develop resistance to biologicals applications due to their differing mode of action compared to conventional
agrochemicals.
Exhibit 21 shows the trends in sugarcane and soybean yields in Brazil. Fluctuations due to plant pathogens and weather are notable
issues.
Exhibit 21: Sugarcane and Soybean yield (Brazil) growth (1961-2016)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
hectogramme per hectare (hg/ha)
hectogramme per hectare (hg/ha)
Sugarcane (primary axis) Soybeans (secondary axis)
Source: Food and Agricultural Organization (FAO)
15
Plant Health Care PLC
Exhibit 22 shows that the average yields of sweet potatoes during the 2001-2010 and 2011-2016 period has declined, compared to
average yields during the period 1991-2000, perhaps due to new agrochemical resistant varieties of plant pathogens.
Exhibit 22: Global yields (Soybeans, Sweet potatoes and Wheat) (1961-2016)
13
93
13
16
116
17
18
136
22
21
143
26
23
135
29
26
124
33
0
20
40
60
80
100
120
140
160
Soybeans Sweet potatoes Wheat
hectogramme per hectare ('1000 hg/ha)
1961-1970 1971-1980 1981-1990 1991-2000 2001-2010 2011-2016
Source: Food and Agricultural Organization (FAO)
Biologicals for agriculture- estimated to grow at an attractive 12% CAGR between 2016 and 2020
According to Dunham Trimmer, a biological market intelligence company, the global demand for biologicals is estimated to grow to
$9.1 billion by 2020, from $5.7 billion in 2016, representing an attractive 12% CAGR. In 2016, horticulture crops accounted for
approximately 80% of the biologicals sales, while, biologicals in row crops are also expected to grow significantly in the years to
come, specifically with applications in corn and soybeans.
Exhibit 23: Plant biologicals set to grow at a 12% CAGR between 2016 and 2020 ($ billions)
$5.70
$9.10
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
2016 2020
Source: Company Investor Presentation
16
Plant Health Care PLC
Plant Health Care – Comparables
We now discuss Plant Health Care’s major comparables. We have selected the following companies: Eden Research PLC, Isagro
S.p.A and Tessenderlo Group as Plant Health Care PLC’s comparables based on their products. We begin with a brief description of
the companies, followed by some key financial/valuation metrics (seen in Exhibit 24). GBP denotes the British pound while GBp
denotes the British pence.
Based on the EV/Revenue metric, PHC looks attractive compared to its closest competitor Eden Research PLC (based on market
capitalization). PHC currently trades at 3.65x EV/Revenue compared to Eden Research PLC at 11.61x EV/Revenue. Further, PHC
trades at a slight premium compared to its large market cap competitors (Isagro S.p.A and Tessenderlo Group), perhaps primarily
due to their conventional agrochemical offerings. PHC’s future growth and expansion opportunities in the form of New Technology
commercialization may imply its slightly higher valuation to its more mature competitors (Isagro S.p.A and Tessenderlo Group).
• Eden Research PLC (LON: EDEN) (“Eden”) – Eden is an AIM-listed agricultural company involved in the production
and sale of natural bioactive products for higher crop yield and crop protection. Eden has expertise in terpenes,
encapsulation and formulation technologies. Eden Research manufactures products for foliar disease control, soil pests
and post-harvest applications. The Company has a market capitalization of GBP22.65 million.
• Isagro S.p.A (LON: OESX) (“Isagro”) – Isagro is an Italian-based manufacturer of biological products for crop
protection (agropharmaceuticals). Isagro is involved in the research, production and distribution of agropharmaceuticals,
and also in the development of new molecules with low environmental impact. Isagro is listed on the London Stock
Exchange. Isagro has a presence in countries such as Australia, South Africa, Mexico and Chile. Isagro has a market
capitalization of GBP48.56 million.
• Tessenderlo Group (EBR: TESB) (“Tessenderlo”) – Tessenderlo is a Belgium based diversified industrial group
operating three business segments namely the Agro segment, Bio-valorization segment and Industrialization segment.
Tessenderlo manufactures markets and sells crop nutrients and crop protection products through its Agro segment.
Tessenderlo’s plant nutrient products are primarily focused on ensuring crop vitality. Tessenderlo is headquartered in
Belgium and sells its products worldwide. Tessenderlo has a market capitalization of GBP1.27 billion
17
Plant Health Care PLC
Exhibit 24 shows some key financial/valuation metrics of Eden Research PLC, Isagro S.p.A, Tessenderlo Group and Plant Health
Care PLC.
Exhibit 24: Financial/Valuation metrics of comparables (as of Aug 14, 2018)
Companies
Market Cap
(million)
Price
EV
(million)
EV/Revenue
1-year price chart
Eden Research PLC
(LON: EDEN)
£22.65
£0.109
£21.79
11.61x
Isagro S.p.A
(LON: 0ESX)
£48.56
£1.46
£101.93
0.77x
Tessenderlo Group
(EBR: TESB)
£1,270
£29.43
£1,350
0.91x
Plant Health Care PLC
(AIM: PHC)
£25.84
£0.149
£28.04
3.65x
Source: Yahoo! Finance and Financial Times
18
Plant Health Care PLC
Company SWOT Analysis
Strengths
Growing Commercial business
The Company’s Commercial business is generating revenues through the sale of its Harpin and Myconate products. Harpin sales
grew 42% YOY and Myconate sales grew 28% YOY in 2017.
Partnership with leading agricultural/seed companies
PHC has established partnership agreements with five top agricultural/seed companies, including the top four market leaders of the
Brazilian fungicide market. Partnership with such top agricultural companies and potential licensing of its 3G peptide platforms
potential should help PHC gain market share in the growing biologicals market space.
Patented product lines
The Company’s products are patent protected. Patents covering Harpin αβ products will continue to expire through 2027. Patents
covering Myconate will continue to expire through 2031.
Qualified and Experienced Board of Directors and Management Team
The Company’s management team has significant expertise in plant science technology and agrochemicals. The Company’s
Executive Chairman and Interim Chief Executive Officer, Dr. Christopher Richards has more than 30 years of experience in plant
technology and life science companies. This experienced management team should successfully help the Company achieve its
future goals.
Weakness
Generating loss since inception
Plant Health Care has a history of operating losses since inception. The Company raises funds from the capital markets from time to
time to meet its working capital expenditures. The Company’s loss for the year attributable to the equity holders of the parent
company was ($5.4) million during the year ended December 31, 2017. This is mainly due to the fact the Company is still growing
the scale of its business and expects to commercialize its products in the near future.
Opportunities
Brazil Sugarcane market – Harpin application
Brazil has 10 million hectares (ha) of sugarcane crop, with a 60% concentration in the state of Sao Paulo. Demonstration field trials
of the Company’s Harpin αβ product revealed average yield increases of over 20%. There is a potential for PHC to gain a 2.5%
market share in the Brazil Sugarcane agrochemical market over the next four years.
Soybean ASR control
Soybean production in Brazil was estimated at $30 billion in 2016. ASR has been devastating for soybean growers. ASR also has
developed resistance against conventional fungicide application, making it ineffective for complete ASR control. Brazilian farmers
spent $1.7 billion on fungicides in 2016. PHC’s Innatus 3G platform demonstrated significant fungus resistance in soybeans during
the initial field trials by the Company. ASR is also not expected to develop resistance to Innatus 3G due to the latter’s mode of
action. PHC, through its Innatus 3G platform, is in discussion with partners on plans for further trials in South American soybeans in
the 2018/19 season.
Threats
Competition
Currently, numerous plant biological companies operate across the world. According to Forbes, the shorter development timeline
and development costs of biological technologies over synthetic chemicals are pushing more companies into the plant biologicals
market. Forbes estimates reveal that over 500 companies operate in the Plant Biologicals segment, which constitute only 5% of the
global market for products used in crop cultivation.
19
Plant Health Care PLC
Financial Performance
The Company follows January to December as its financial year. We begin by analyzing the Company’s cash burn followed by the
financial statements. All financial amounts are in US dollars unless specified.
Exhibit 25 shows the cash burn analysis of Plant Health Care PLC. We have considered operating cash flows for cash burn analysis
as other activities are not part of its core business. The Company’s average cash burn per month stood at $598,000 with an average
survival period of 3.74 months. The Company’s investments, cash and cash equivalents stood at $3.9 million as of December 31,
2017. Further, on February 27, 2018, the Company successfully raised $6.7 million through equity issuance. Based on the current
cash and cash equivalents in hand, the Company is confident that it has sufficient liquidity to fund its working capital needs through
the fiscal year 2018 (based upon its 2018 revenue and operating expense projections). As of June 30, 2018, the Company reported
that it had cash reserves of $6.1 million.
Exhibit 25: Cash burn analysis (in $’000s)
Period/ Amount
(in '000)
Six months
ended June
2015
Six months
ended Dec 2015
Six months
ended June
2016
Six months
ended Dec 2016
Six months
ended June
2017
Six months
ended Dec 2017
AVG
Net operating cash flow
(3,828)
(3,684)
(5,054)
(4,092)
(3,155)
(1,722)
(3,589)
Net investing cash flow
2,798
1,518
4,462
(2,666)
1,211
1,385
1,451
Net financing cash flow
(6)
141
(5)
9,741
(5)
(5)
1,644
Cash position (Six
months end)
2,768
948
1,169
4,727
2,179
1,175
2,161
Burn Rate per month
(638)
(614)
(842)
(682)
(526)
(287)
(598)
Survival period (in
months)
4.34
1.54
1.39
6.93
4.14
4.09
3.74
Source: RBMG Research
Exhibit 26 shows the Company’s income statements for the year ended December 31, 2017 and 2016. The Company generated
$7.7 million revenue in 2017, a 21% increase compared to $6.3 million in 2016. This increase was driven by a strong sales growth in
the Rest of World segment, up 100% to $3.2 million from $1.6 million in 2016, partially offset by a 11% decrease in revenue from the
Mexican segment ($2.9 million in 2017 from $3.2 million in 2016). Gross profits increased by 22% to $4.7 million for the year ended
December 2017, compared to $3.9 million for the same period in 2016. Gross margins were steady at 61.6% in 2017, a marginal
0.1% increase. Operating loss narrowed to $5.8 million in 2017, a 49% decrease compared to 2016. This was due to lower
administrative expenses in 2017, which fell by approximately 75% compared to 2016. Excluding the exceptional costs incurred in
2016 relating to a potential US listing ($1.2 million) and a non-cash decrease in the value of loans (loss of $1.5 million in 2016
compared to a gain of $1.3 million in 2017), cash operating expenses fell by approximately 5% in 2017, compared to 2016. Further,
net loss for the year attributable to the equity holders of the Company in 2017 narrowed to $5.4 million, a 51% decrease compared
to $11.2 million in 2016.
Exhibit 26: Income Statements for year ended December 31, 2017 and 2016 (in $’000s)
Particulars
For the year ended December
31, 2017
For the year ended December
31, 2016
Y-o-Y
(%)
Revenue
$7,685
$6,329
21%
Cost of sales
($2,953)
($2,436)
21%
Gross profit
$4,732
$3,893
22%
Research and development expenses
($5,127)
($4,485)
14%
Business development expenses
($623)
($954)
-35%
Sales and marketing expenses
($2,995)
($2,518)
19%
Administrative expenses
($1,788)
($7,286)
-75%
Operating loss
($5,801)
($11,350)
-49%
Finance income
$87
$52
67%
Finance expense
($2)
($2)
0%
Loss before tax
($5,716)
($11,300)
-49%
Income tax credit
$262
$83
216%
Loss for the year attributable to the equity holders of the parent
company
($5,454)
($11,217)
-51%
Other comprehensive income
Items which will or may be reclassified to profit or loss:
Exchange difference on translation of foreign operations
($1,282)
$1,393
-192%
Total comprehensive loss for the year attributable to the equity
holders of the parent company
($6,736)
($9,824)
-31%
Basic and diluted loss per share
($0.04)
($0.11)
-64%
Source: Company filings
20
Plant Health Care PLC
Exhibit 27 displays the balance sheets, as of December 31, 2017 and December 31, 2016. As of December 31, 2017, the
Company’s cash and cash equivalents stood at $1.2 million compared to $4.7 million on December 31, 2016. The decrease was
primarily due to no issuance of shares in the year ended December 31, 2017, compared to a $9.7 million equity issuance in the year
ended December 31, 2016. Working capital decreased $5.3 million as of December 31, 2017 compared to December 31, 2016.
Exhibit 27: Balance Sheets as of December 31, 2017, and December 31, 2016 (in $’000s)
As at December 31, 2017
As at December 31, 2016
Y-o-Y (%)
Assets
Non-current assets
Intangible assets
$1,898
$2,162
-12%
Property, plant and equipment
$968
$1,236
-22%
Trade and other receivables
$134
$131
2%
Total non-current assets
$3,000
$3,529
-15%
Current assets
Inventories
$1,536
$1,245
23%
Trade and other receivables
$4,668
$3,284
42%
Investments
$2,719
$5,349
-49%
Cash and cash equivalents
$1,175
$4,727
-75%
Total current assets
$10,118
$14,605
-31%
Total assets
$13,118
$18,134
-28%
Liabilities
Current liabilities
Trade and other payables
$2,879
$2,088
38%
Finance leases
$8
$8
0%
Total current liabilities
$2,887
$2,096
38%
Non-current liabilities
Finance leases
-
$7
NM
Total non-current liabilities
-
$7
NM
Total liabilities
$2,887
$2,103
37%
Total net assets
$10,231
$16,031
-36%
Share capital
$2,237
$2,237
Share premium
$79,786
$79,786
Foreign exchange reserve
($389)
$893
-144%
Accumulated deficit
($71,403)
($66,885)
7%
Total equity
$10,231
$16,031
-36%
Source: Company filings
21
Plant Health Care PLC
Exhibit 28 shows Plant Health Care’s cash flow statements for the year ended December 31, 2017 and 2016. The Company’s
operating cash outflow flow decreased to $4.9 million in the year ended December 31, 2017, compared to $9.1 million in the year
ended December 31, 2016. This was primarily due to the decrease in net loss in the year ended December 31, 2017 compared to
the same period a year ago. Net cash provided by investing activities was $2.6 million in the year ended December 31, 2017, due to
the sale of money market and fund investments. Net cash provided by financing activities was zero in the year ended December 31,
2017, compared to $9.7 million in the year ended December 31, 2016.
Exhibit 28: Cash Flow Statement for the year ended December 31, 2017 and December 30, 2016 (in $’000s)
Particulars
For the year ended December 31,
2017
For the year ended December 31,
2016
Y-o-Y (%)
Cash flows from operating activities
Loss for the year
($5,454)
($11,217)
-51%
Adjustments for:
Depreciation
$393
$359
9%
Amortization of intangibles
$264
$273
-3%
Share-based payment expense
$936
$1,063
-12%
Finance income
($87)
($52)
67%
Finance expense
$2
$2
0%
Income taxes credit
($262)
($83)
216%
(Increase)/decrease in trade and
other receivables
($1,024)
$1,145
-189%
Gain on disposal of fixed assets
($4)
($14)
-71%
(Increase)/decrease in inventories
($291)
$146
-299%
Increase/(decrease) in trade and
other payables
$771
($973)
-179%
Income taxes paid
($121)
$205
-159%
Net cash used in operating
activities
($4,877)
($9,146)
-47%
Investing activities
Purchase of property, plant and
equipment
($125)
($469)
-73%
Sale of property, plant and
equipment
$4
$71
-94%
Finance income
$87
$52
67%
Purchase of investments
($2,258)
($7,918)
-71%
Sale of investments
$4,888
$10,060
-51%
Net cash provided by investing
activities
$2,596
$1,796
45%
Financing activities
Finance expense
($2)
($2)
0%
Issue of ordinary share capital
-
$9,747
Repayment of finance lease
principal
($8)
($9)
-11%
Net cash (used)/provided by
financing activities
($10)
$9,736
-100%
Net (decrease)/increase in cash
and cash equivalents
($2,291)
$2,386
-196%
Effects of exchange rate changes
on cash and cash equivalents
($1,261)
$1,393
-191%
Cash and cash equivalents at the
beginning of period
$4,727
$948
399%
Cash and cash equivalents at the
end of period
$1,175
$4,727
-75%
Source: Company filings
22
Plant Health Care PLC
Key Risk Factors
Financial risk
Since inception, the Company has a history of generating losses. Plant Health Care raises funds periodically to fund its working
capital and development activities. If the Company were unsuccessful in raising capital in a timely manner, it would severely impede
its commercial operations as well as research and development activities.
Credit risk
Plant Health Care sells majority of its products through credit sales. The ability of the customers to repay PHC on time is partly
dependent on several macroeconomic factors such as economic strength of the industry and the geographic area in which it
operates. Failure to successfully collect money from credit sales could potentially affect the Company’s financial condition.
Dependence on employees and officers
Plant Health Care’s ability to compete and potential success is highly dependent on retaining its key qualified personnel. Inability to
retain such key personnel and attract new talents could hinder the Company’s business activities.
Commercialization risk
The licensing of PHC’s PREtec technology depends on the evaluation partner’s interest in conversion to a formal commercial offer.
Any uncertainties in partner evaluation could potentially lead to a slowdown in PREtec commercialization.
Regulatory risk
The Company has to obtain regulatory approvals and abide by the current rules and regulations governing them. Inability to follow
such regulations could delay the sales of its products, and even hinder the development of its potential products.
Shareholding Pattern
As of May 30, 2018, the Company has 184.8 million fully diluted shares including stock options. Exhibit 29 and 30 show the capital
structure and details of the major shareholders respectively.
Exhibit 29: Share capitalization, as of May 30, 2018
Particulars
Millions
Total Shares outstanding
172,822,881
Stock Options
12,037,060
Total fully diluted shares
184,859,941
Source: Plant Health Care PLC Investor Presentation
Exhibit 30: Major shareholder summary, as of March 2, 2018
Shareholder
% of holding
Mr. Richard I Griffiths
36.71%
1798 Volantis
20.64%
Boulder River Capital Corp
7.32%
Polar Capital
6.97%
Source: Plant Health Care PLC Investor Presentation
23
Plant Health Care PLC
Profile of Directors and Management
Dr. Christopher Richards, Executive Chairman and Interim Chief Executive Officer
Dr. Christopher Richards is the Executive Chairman and Interim Chief Executive Officer of Plant Health Care. He has more than 30
years of experience in technology and life sciences. He has held several senior level positions at various companies located in
South America, Europe and Asia. From 2003 to 2015, he held various leadership positions at Arysta LifeScience, a global
agrochemical company. He has worked at companies namely Dechra Pharmaceuticals PLC, Cibus Global, Ltd. and Bio Products
Laboratory Ltd. Dr. Richards completed his Masters in Zoology in 1975 and Ph.D. in Ecology in 1980 from St. John’s College,
Oxford University.
Michael J. Higgins, Senior Independent Director
Mr. Michael J. Higgins is a Senior Independent Director of the Company. He has over 25 years of expertise in advising companies to
achieve high growth in the marketing service and technology sectors. From 1996 to 2006, he was a partner of KPMG LLP. From
2006 to 2011, he worked as a Senior Adviser at KPMG. He worked at Saudi International Bank and was an accountant with PwC.
From November 2013 to October 2016, Mr. Higgins worked as a Non-Executive Director at Arria NLG PLC. He holds a Masters in
Economics and Politics from Cambridge University.
Dr. Richard H. Webb, Executive Director
Dr. Richard H. Webb is an Executive Director of Plant Health Care. In 1995, he founded StepOut Ltd, a consultancy business firm.
From 2012 to 2014, he played an important role in developing the Company’s new business strategy and New Technology program.
He holds a doctorate in pest biology from the London School of Hygiene & Tropical Medicine.
William M. Lewis, Non-executive Director
Mr. William M. Lewis is a Non-executive Director of the Company. He has held several senior positions at various companies
namely Syngenta Crop Protection, Arysta LifeScience and Zeneca/ICI. He is the Chair of the Remuneration Committee and a
member of the Audit Committee.
24
Plant Health Care PLC
Sources
• Company Website
• Company Press Release & Presentations
• UN Department of Economic and Social Affairs
• Food and Agricultural Organization (FAO)
• Dunham Trimmer
• Yahoo! Finance
• Financial Times
• Forbes
• E. C. 2006. Crop losses to pests and Cassman, K. G. 1999. Ecological intensification of cereal production systems: yield
potential, soil quality, and precision agriculture.
Disclaimer
The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to
meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or
solicitation of an offer to buy or sell any security. To the fullest extent of the law, RB Milestone Group LLC (“RBMG”), its staff, specialists, advisors,
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higher degree of financial distress inherent in the small-cap and microcap segments of the market. The information, opinions, data, quantitative and
qualitative statements contained herein have been obtained from sources believed to be reliable but have not been independently verified and are
not guaranteed as to accuracy, nor does it purport to be a complete analysis of every material fact regarding RBMG client companies, industries, or
securities. The information or opinions are solely for informational purposes and are only valid as of the date appearing on the report and are subject
to change without notice. Statements that are not historical facts are "forward-looking statements" that involve risks and uncertainties. "Forward
looking statements" as defined under Section 27A of the Securities Act of 1933, Section 21B of the Securities Exchange Act of 1934 and the Private
Securities Litigation Act of 1995 include words such as "opportunities," "trends," "potential," "estimates," "may," "will," "could," "should," "anticipates,"
"expects" or comparable terminology or by discussions of strategy. These forward-looking statements are subject to a number of known and
unknown risks and uncertainties outside of the company's or our control that could cause actual operations or results to differ materially from those
anticipated. Factors that could affect performance include, but are not limited to those factors that are discussed in each profiled company's most
recent reports or company filings or registration statements filed with the SEC or other actual government regulatory agency. Investors should
consider these factors in evaluating the forward-looking statements contained herein and not place undue reliance upon such statements. Investors
are encouraged to read investment information available at the websites of Plant Health Care PLC (“PHC”) at www.planthealthcare.com and the
SEC at http://www.sec.gov and/or FINRA at http://www.finra.org and/or other actual government regulatory agency. RBMG is a US-based consulting
firm and is hired by client companies globally to carry out consulting services that include: corporate strategy formation, business development,
market intelligence and research. RBMG is not a FINRA member or registered broker/dealer. RBMG research reports and other proprietary
documents or information belonging to RBMG are not to be copied, transmitted, displayed, distributed (for compensation or otherwise), or altered in
any way without RBMG's prior written consent. Over time, RBMG has received cash fees equal to sixty five thousand USD from Plant in exchange
for RBMG consulting services. In this case, consulting services consist of corporate strategy formation, business development, market intelligence
and research. These services include the preparation of this report and RBMG helping Plant communicate its corporate characteristics to applicable
investment and media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or
exercise shares, options, rights, or warrants to purchase shares of Plant at their lawful discretion and this can happen at any time.