Plentex to acquire algae-based bioactive producer

Plentex Limited has announced plans to acquire Gold Coast company Biovite Australia. Plentex has signed a Non-Binding Letter of Intent to purchase the business.

Biovite is a science-based biotechnology company involved in the discovery, research and development, proof of concept and commercialisation of bioactives for use in human health, animal health and agriculture. The company is currently focused on developing an algae-derived bioactive which has applications for a variety of dermatological conditions of the nails and skin in humans.

Established in 2001, Biovite has undertaken a program of research and development into the activity, efficacy and safety of its bioactive. Biovite has developed a range of products in the pharmaceutical, skincare and human food supplement markets, some of which are sold in Australia and in overseas markets.

Plentex’s aim is to become the leading Australian producer of sustainable, algae-based raw materials for the renewable fuel and energy, livestock feed and nutraceutical industries.

Plentex says Biovite will become the core of its future business plan once the acquisition is complete. Plentex’s current business model revolves around the identification, sourcing and planned production and marketing of high-value products that can be extracted from both micro and macro algae.

These products will be sold into the nutraceutical, cosmeceutical and animal nutrition markets. With the acquisition of Biovite, Plentex will market its proposed product range under the Biovite brand. These products are expected to include a ‘superfood’ algae sold in powder and capsule form, a carotenoid that promotes eye health and an algae-based omega oil.

Under the Letter of Intent, Plentex has exclusive rights to acquire the Biovite business and is currently completing due diligence. It is anticipated that the consideration payable by Plentex for the acquisition will consist of a combination of cash, fully paid ordinary shares in Plentex and options.