Plant Health Care PLC Update on sugarcane in Brazil (0790W)

TIDMPHC

RNS Number : 0790W

Plant Health Care PLC

30 July 2018

30 July 2018

PLANT HEALTH CARE plc

("Plant Health Care" or the "Company")

Update on sugarcane in Brazil

Plant Health Care(R) , a leading provider of novel patent-protected biological products to global agriculture markets, provides the following update on Harpin <ALPHA><BETA> launch in Brazil.

Highlights

- Harpin <ALPHA><BETA> applied in sugarcane in Brazil; demonstration plot yield increase of 20% or more.

- Harpin <ALPHA><BETA> was launched in Brazil sugarcane in February 2018 through Coplacana under the brand name H2Copla. Grower feedback has been strong.

- Since the launch of H2Copla in February 2018, the product has generated revenue of $400k. The Company expects to generate at least as much revenue from H2Copla in the second half of 2018.

- The Company is now planning for the launch of Harpin <ALPHA><BETA> in coffee, which has similar potential to sugarcane.

With 10 million hectares planted, Brazil sugarcane is an important target for Plant Health Care. The Company has been developing Harpin <ALPHA><BETA> for use in this crop. Trials have been conducted in both ratoon cane (i.e. cane which grows back after harvest) and newly planted cane (normal practice is to take five crops from ratton cane, then plant again). Trials conducted on behalf of the Company in 2018 showed that single applications of a low dose (100 g per Ha) at six to eight weeks after harvest, significantly increased the yield of ratoon cane (10-29%) in ratoon cane. Moreover, it is possible that the ratoon crop may be extended from five to six years, which is a material cost reduction, especially when sugar prices are low. Trials also indicated that newly planted cane responds well to applications of Harpin <ALPHA><BETA>.

Based on these promising results, as announced on 16 July 2018, the Company launched a Harpin <ALPHA><BETA> product with Coplacana, a leading sugarcane co-operative in Brazil, for their exclusive use of the H2Copla brand in sugarcane. Coplacana services more than 70% of the sugarcane hectares in Sao Paolo state, where more than 5 million hectares of the crop are grown. Demonstration trials with Coplacana have shown impressive results, with an average yield increase of over 20%.

H2Copla was launched in February 2018 and the product has received very positive grower feedback. The launch quantities have been largely sold and the Company expects to make further sales during the second half of 2018. We confidently expect sales in Brazilian sugarcane to build in the second half of 2018 and over the coming years.

Arnaldo Bortoletto, President of Coplacana, said "We continue to have excellent field results with H2Copla, with good grower feedback and we expect strong demand for H2Copla in the second half of 2018".

Jeff Tweedy, Commercial Head, Americas for Plant Health Care, said: "We are very encouraged by the support we are receiving from Coplacana in promoting H2Copla in the field and have high expectations for future sales. The Company is now developing Harpin <ALPHA><BETA> in other crops. In 2017/18, we had most encouraging preliminary results in coffee, with both yield and quality improvements. We are now examining routes to market for Harpin <ALPHA><BETA> in this crop, with a view to launching for the 2019-2020 growing season. We see coffee as being at least as valuable a crop for the Company as sugarcane."

For further information, please contact:

Plant Health Care plc

   Chris Richards, Executive Chairman and Interim CEO                     Tel: [phone] 

Jeffrey Tweedy, Commercial Head, Americas

Liberum Capital - Nomad and Broker

Clayton Bush / Chris Clarke Tel: [phone]

Arden Partners plc - Joint Broker

John Llewellyn-Lloyd / Dan Gee-Summons Tel: [phone]

IFC Advisory - Financial PR

Graham Herring / Miles Nolan / Zach Cohen Tel: [phone]

Company website: www.planthealthcare.com

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July 30, 2018 02:01 ET (06:01 GMT)