YPB Group (ASX:YPB) has announced it has executed a binding term and token sale agreement with First Growth Funds (ASX:FGF), DigitalX Limited (ASX:DCC) and Blockchain Global Limited (BGL) to provide funding and token sale advisory services.
FGF, BGL strategic investors and DCC will provide $1.5 million in secured convertible note funding to accelerate the company’s upcoming token issue which was announced to the ASX on 26, July 2018.
YPB has secured an additional $1.62 million in an oversubscribed equity placement. The Convertible Note will be subject to shareholder approval at an EGM to be called presently and will contain the following key terms:
• 3 year term from the date of issue with a 10% coupon payable quarterly,redeemable at maturity at the request of the Noteholder for cash or convertible into shares at the lower of A$0.018 or 50% of the price at the most recent capital raise price immediately preceding the conversion.
• Upon conversion the Noteholder will be issued 1 option for every share issued at an exercise price of A$0.025 exercisable anytime before the third anniversary of the issue date.
YPB’s CEO and Executive Chairman, John Houston, said the funds have been secured following YPB’s technical breakthrough on its smartphone readable anti-counterfeit technology.
“It is exciting to see the overwhelming interest for YPB’s IP-protected world-beating secure smartphone serialisation solution. The commercial prospects of this breakthrough are quickly being recognised globally and we are looking forward to an exciting roadmap ahead,” said John Houston.
The YPB technology integrates secure anti-counterfeit marks into quality brands’ packaging to deliver certainty of authenticity of the product and this authenticity triggers consumer engagement.
The investment was structured by First Growth Funds, which enlisted support from DigitalX and Blockchain Global.
“FGF is the cornerstone investor with a half-million-dollar investment, and we are pleased to have secured support from strategic groups such as DigitalX and Blockchain Global,” said FGF Executive Director Anoosh Manzoori.
The funds will be directed towards a sales and channel strategy plan agreed by the parties. YPB will also be implementing corporate cost-reduction initiatives.
DigitalX and Blockchain Global have agreed to advise and assist YPB with the development and distribution of the “YPB token” (Tokens) and to introduce the Tokens to international exchanges.
DigitalX CEO Leigh Travers commented; “We are pleased to advise publicly listed YPB on its upcoming token issue and are excited to see Blockchain technology applied to solving a real world problem of ensuring that fake goods do not infiltrate the supply chain for Australian businesses.”
Blockchain Global CEO Sam Lee commented; “Our association with YPB is an exciting fit with our recent $14m investment in a Japanese listed Company “Path Corp” (3840:TYO) which further strengthens our Global network incorporating strategic partnerships with FGF and DigitalX. The Utility of YPB’s technology creates strong opportunity in the Asian Markets and we look forward to seeing Blockchain technology enhance its penetration.”