CODEIFAI LIMITED — Capital/Financing Update 2019

Sep 19, 2019

ASX ANNOUNCEMENT ASX:YPB | 20 September 2019

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YPB Group receives commitments for A$2.5m

Highlights

• Commitments of A$2.5m received for private placement

• Solid demand from sophisticated and professional investors

Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) ( YPB or the Company ) is pleased to announce it has received commitments of A$2.5m to be completed as a private placement to sophisticated and professional investors ( Placement ).

The Placement will be undertaken at $0.007 per share, a 5.8% discount to the 5-day VWAP. 357,142,857 fully paid ordinary shares ( Shares ) will be issued as a result of the Placement.

Funds raised under the Placement will be used for the technical development of Motif Micro and the Connect Platform, fund marketing costs and business development activities, pay for costs related to the Placement, repay debt and for general working capital purposes.

The Company has previously obtained security holder approval for the issue of up to A$2.5 million worth of shares and the Placement will be completed in accordance with this approval without utilising the Company’s existing Listing Rule 7.1/7.1A capacity.

EverBlu Capital Pty Ltd (‘EverBlu’) was appointed Corporate Adviser and Lead Manager in relation to the Placement and will receive a 6% fee on the gross amount raised under the Placement.

YPB Group CEO John Houston said: “I thank our placement participants for their support and welcome them to our register. I’d like to also reassure all shareholders that we are focused on leveraging our first commercial success with Motif Micro, and together with a substantially reduced cost base, we are intent to reduce our reliance on external capital and to substantially grow shareholder value.”

Ends

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For further information please contact:

Investor enquiries

investors@ypbsystems.com

About YPB Group

YPB Group Limited (ASX:YPB) is an Australia-based product authentication and consumer engagement solutions provider. YPB's proprietary smartphone enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumers’ engagement.

The combination of YPB’s smartphone authentication solutions and its SaaS Connect platform, creates ‘smart’ product packaging, opening cost-effective, digital and direct marketing channels between brands and their consumers. Connect gathers actionable data on consumer preferences. It can then host tailored marketing campaigns directly back to the scanning smartphone.

YPB’s technology is also trusted by the world’s largest passport issuing nation to ensure the authenticity of its passports. YPB is currently focused on the rapidly growing Australian, South East Asian, and Chinese markets. Its focus is dairy, cannabis, alcohol and cosmetics where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers. To learn more please visit: www.ypbsystems.com

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