As per the agreement, Phyto Nutricare will pay a one-time license fee of $2m to Plandai and then a recurring payment of 5% from the future profits of Phytofare product sales.
The sales of Phytofare are anticipated to commence in the fourth quarter of 2013.
Plandai CEO Roger Duffield said that the goal over the short term is to bring Phytofare products to market.
"Licensing the development and distribution of Phytofare™ products for the nutraceutical industry to Phyto Nutricare allows Plandai to focus on the development of new extractions and the pursuit of pharmaceutical drug targets," Duffield added.
Plandai expects a human clinical trial to commence shortly to target bioavailability, obesity, high cholesterol, hypertension and high blood pressure with results expected in late Q3.