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CODEIFAI LIMITED — Capital/Financing Update 2020
Jun 9, 2020
64630_rns_2020-06-09_7a61749e-fa26-479c-9da4-238523336b4c.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT ASX:YPB | 10 June 2020
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Funding Update
Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) wishes to advise that it has entered into a subscription agreement with J F Houston Holdings Pty Ltd (JFH), an entity associated with director, Mr. John Houston, pursuant to which, subject to shareholder approval, JFH has agreed to subscribe for 600,000,000 fully paid ordinary shares at an issue price of $0.001 per Share. One unquoted option exercisable at $0.002 on or before 31 December 2020 will attach to each ordinary share.
The subscription amount under the agreement will be used to repay all outstanding amounts under JFH’s existing $600,000 unsecured loan to the Company (Initial Loan).
The Company obtained the Initial Loan in challenging market conditions resulting from the COVID-19 crisis where other sources of funding were not available. The Company considers the repayment of the Initial Loan to be in the best interests of the Company and in its circumstances and having considered its options, that such repayment be effected through the subscription for shares by JFH.
Separately , the Company and JFH have agreed to enter into a subsequent unsecured loan of $400,000 (Subsequent Loan). The Subsequent Loan bears interest of 8% per annum and is repayable on 20 August 2020.
Funds drawn under the Subsequent Loan will be used for technical development of the Connect Platform and Motif Micro as well as for general working capital purposes.
Further information in respect of the transaction described above will be provided to shareholders in the relevant notice of meeting in due course. The notice of meeting will be accompanied by an independent expert’s report which concludes that the transaction is not fair but reasonable for shareholders.
This announcement has been authorised by the Board of YPB Group Limited.
For further information please contact:
Investor enquiries
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