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Stevia First signs collaboration deal yielding potential new revenue stream: H.C. Wainwright

Published: 15:45 18 Mar 2015 EDT

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Stevia First Corporation (OTCQB:STVF) had its buy rating reiterated by H.C. Wainwright today as the company announced a collaboration agreement with BioViva Sciences, a private biotechnology firm researching therapies against illnesses caused by cellular degeneration and genetic disorders such as diabetes and obesity.

Analyst Amit Dayal said that the collaboration announcement is an indicator of Stevia First’s technological potential, "leveraging its artificial intelligence and machine learning capabilities (directed towards internal efforts to identify novel genes, drugs, and nutritional products that influence lifespan and human metabolism)."

Stevia is a sugar substitute, similar to honey in appearance and texture, derived from the leaves of the stevia rebaudiana plant. The company wants to develop a method to achieve its production on an industrial scale in order to address potential demand in the food and beverage industry.

The company has assembled a team of scientists and agronomists to increase the world’s supply of stevia.

Stevia First says that the World Health Organization (WHO) has estimated that stevia intake could eventually replace 20-30% of all dietary sweeteners.

The target price of the company was left unchanged at US$0.55. H.C. Wainwright initiated coverage of Stevia First in November 2014. The company is currently trading up at US$0.39 per share, up 5.27 percent.

Dayal does not expect the partnership with BioViva to yield any revenues in the short term; however, "these types of collaborations could result in new revenue streams for the company in the future."

The analyst also suggested that Stevia First can generate strong appeal because of an "increasing demand for natural foods and less than favorable social sentiment towards sugar heavy diets," prompting consumers and the food industry alike to look for sugar alternatives.

The company is still in an early stage of commercialization and, Dayal warns that "the majority of the execution still lies ahead." Yet, the analyst acknowledged that Stevia First’s management has fulfilled its targets to date.

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