CODEIFAI LIMITED — Capital/Financing Update 2020

Oct 20, 2020

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ASX ANNOUNCEMENT

ASX:YPB | 21 October 2020

YPB receives commitments to raise $3.6m to fast track growth

Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) is pleased to announce that it has received firm commitments from institutional, professional and sophisticated investors to raise up to $3.6 million (before costs) (“Placement”). Under the Placement, YPB will issue 1,272,084,826 fully paid ordinary shares (“Shares”) at an issue price of $0.00283 per share and one free attaching option (“Option”) (exercisable at $0.005 per Option expiring 12 months from the date of issue) for every one Share issued under the Placement.

The Placement also allows the Company the financial flexibility to pursue agreements with new and existing channel partners. The Company’s channel partner strategy will allow YPB to build a large customer base with substantial profit potential. The strategy multiplies sales resources by leveraging partners with existing customers in need of YPB’s solutions, allowing high volume and recurring opportunities for the Company.

The Placement Shares will be issued in accordance with shareholder approval obtained on 22 July 2020 and by utilising the Company’s existing Listing Rule 7.1A capacity respectively comprised of the following:

• Approved by shareholders on 22 July 2020 – 1,060,070,671 Shares

• Listing Rule 7.1A capacity – 212,014,155 Shares

The Company will seek separate shareholder approval to issue the Placement Options. Subject to meeting all necessary regulatory requirements, the Company intends to seek ASX quotation of the Placement Options and options with the same terms announced on 24 August 2020 as a separate class of quoted securities.

EverBlu Capital Pty Ltd (‘EverBlu’) is Corporate Adviser and Lead Manager in relation to the Placement and will receive a 6% fee on the gross amount raised under the Placement as well as 99,692,309 Shares and 276,923,077 Options subject to the Company obtaining shareholder approval.

YPB Group CEO John Houston said: “This investment from professional and institutional investors represents a strong vote of confidence in our growth strategy and provides significant financial flexibility to aggressively pursue our reinvigorated focus of leveraging channel partners in high-volume industries. The Company thanks the placement participants for their support and welcome them to our register.”

This announcement has been authorised by the Board of YPB Group Limited.

For further information please contact:

Investor enquiries investors@ypbsystems.com

About YPB Group

investors@ypbsystems.com

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypb.io

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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 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: ypb.io

investors@ypbsystems.com

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypb.io