CODEIFAI LIMITED — Capital/Financing Update 2019

Jul 31, 2019

ASX ANNOUNCEMENT ASX:YPB | 1 August 2019

==> picture [128 x 52] intentionally omitted <==

YPB Group receives commitments for A$1.6m

Highlights

• Commitments of A$1.6m received for private placement

• Solid demand from sophisticated and professional investors

1 August 2019 – 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$1.6m to be completed as a private placement to sophisticated and professional investors ( Placement ).

The Placement will be undertaken at 0.714 cents per share, a 25% discount to the 15-day VWAP. 224,089,636 fully paid ordinary shares ( Shares ) will be issued as a result of the Placement.

Funds raised under the Placement will be used to repay existing debt, fund marketing costs and business development activities, pay for costs related to the Placement and for general working capital purposes.

The Company will not seek security holder approval for the issue of the Placement Shares. The Placement will be completed by utilizing the Company’s existing Listing Rule 7.1/7.1A capacity comprised of the following:

• Listing Rule 7.1: 137,555,021 Shares

• • Listing Rule 7.1A: 86,534,615 Shares

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

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 intently focused on converting the opportunities developed recently, together with a leaner operation, to greatly reduce our reliance on external capital and to substantially grow shareholder value.”

Ends

==> picture [479 x 44] intentionally omitted <==

==> picture [128 x 52] intentionally omitted <==

For further information please contact:

Investor enquiries

investors@ypbsystems.com

Media enquiries

Julia Maguire The Capital Network M: +61 419 815 386 E: julia@thecapitalnetwork.com.au

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

==> picture [479 x 44] intentionally omitted <==