CODEIFAI LIMITED — Regulatory Filings 2014

Aug 6, 2014

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ASX Announcement

7 August 2014

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YPB GROUP TO LIST ON ASX TODAY AFTER OVERSUBSCRIBED OFFER

Highlights

• Anti-counterfeit technology Company YPB Group to list on ASX today, 7 August, after oversubscribed $3M new listing Offer.

• Offer successfully raised $3.75 million at 20c per share.

• Proceeds of Offer will be used to accelerate Company’s aggressive sales and growth plans for its unique, patented anti-counterfeiting products and technology.

• Initial focus is on China and greater Asia markets where anti-counterfeit authentication market is valued at US$14B and growing at 20% per annum.

Anti-counterfeiting technology Company YPB Group Limited (ASX: YPB) (YPB, the Company) is pleased to announce that it will list on the ASX today, at 10.09 AEST, after its $3 million ASX listing Offer (Offer) closed oversubscribed amidst strong investor demand.

The strong demand from investors is a reflection of the major growth potential of YPB’s unique anticounterfeiting technology platform and products.

The YPB Offer opened on June 5, and offered 15 million shares at 20c each to raise a minimum of $3 million. The Offer has successfully raised $3.75 million. On listing the Company will have a tight capital structure, with 101.44 million shares on issue, and a market capitalisation of $20.4 million at the 20c issue price.

YPB provides a unique, patented anti-counterfeit solution that is cost effective, invisible and indestructible, and allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting.

The YPB business is well established and has a number of substantial customer contracts already in place, plus a strong contract pipeline. Its initial focus is on the China and greater Asia markets, where the anti-counterfeit authentication market is currently valued at US$14 billion and growing at 20% per annum.

Immediately upon listing the Company will deploy the proceeds of the Offer to accelerate its aggressive sales and marketing growth plans.

This will include the roll-out of a new Smartphone App that provides consumers with the ability to authenticate a product as real or fake, via their mobile device handset.

The Company has a highly experienced board and management team with specific expertise in the commercialisation of technologies, and business operations in China and other international markets.

The Corporate Adviser and Lead Manager to the Offer was Sydney-based corporate advisory firm K S Capital.

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Commenting on the successful Offer and listing YPB Executive Chairman and CEO Mr John Houston said:

“We are delighted with the level of support for our Offer from investors, and I would like to take this opportunity to thank all involved in the listing process and our shareholders for their efforts in achieving a successful listing. We now look forward to executing our business plans without delay, to position YPB as a leading player in the burgeoning anti-counterfeiting technology market and to deliver value for our shareholders. This will include growing our client base as well as expanding our product and service offering, and I look forward to sharing news of our progress in due course.”

Business plans

Immediately post-listing the Company will accelerate the roll out of its business plan. In the short to medium term, this will include;

• Grow customer contract base – Expansion within existing customer base and conversion of new business pipeline to client contracts.

• Release of next generation scanner – A brand-specific scanner to provide a customised anticounterfeit solution to larger customers and brand owners.

• Launch of Smartphone App – Revolutionary new application that will allow consumers to validate a product as real-or-fake via their mobile device handset. This represents a major potential new revenue stream for the Company in the massive Smartphone App market.

• Pursue complementary value-accretive acquisition opportunities .

The Company also intends to launch an options entitlement issue approximately four months after listing, on the basis of one option for every four ordinary shares held in the Company (at a record date to be confirmed), expiring three years from the date of issue and exercisable at 20c. All shareholders on the register at the record date will be entitled to participate.

Robert Whitton Company Secretary

For further information please contact;

Mr John Houston CEO YPB Group Limited T: +61 458 401 088 E: john.houston@ypbsystems.com W: www.ypbsystems.com

Mr Greg Wood Managing Director K S Capital T: +61 416 076 377 E: g.wood@kscapital.com.au

Media and Investor Inquiries

James Moses Media and Investor Relations Mandate Corporate T: +61 420 991 574 E: james@manadatecorporate.com.au

About YPB Group

YPB Group (ASX: YPB) is an anti-counterfeiting technology company. It provides a unique, cost effective, invisible, indestructible anti-counterfeit solution that allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting. The Company is initially focused on the China and greater Asia markets. The YPB business is well established and has a number of substantial customer contracts in place and a strong new business pipeline.

YPB Group’s core products include ;

Forensic Tracers – These are hidden, invisible and indestructible particles fused into a product or packaging during or after the manufacture process. The Tracers can be used in all key product manufacturing and packaging industries including plastics, paper, inks, textiles and coatings. They cannot be seen or removed and are impossible to destroy or damage as they are part of the product. They consist of infrared, UV light energy and X-ray sensitive particles detectable by YPB’s scanner technology.

YPB owns two patents over its Tracer products and is the only Company currently licensed in China to supply invisible tracers. YPB’s Tracers are considerably cheaper than current alternatives, and have high gross margins on sales, of up to 90%.

Scanner – YPB’s proprietary scanner detects YPB’s forensic Tracers and confirms the host product’s authenticity. They are low cost and can be used at any point in the supply chain – from manufacture through to point-of-sale. Encryption is used on the scanners and software, and any attempt to reverse engineer triggers a self-destruct software code.

Smartphone App – A revolutionary new application to provide consumers the ability to authenticate a product as real or fake, via their mobile phone handset. The mobile phone App is planned for commercial launch in H2, 2014 and will initially target the massive China Smartphone App market. A patent application has been submitted for the Smartphone App and is Patent Pending through YPB is pleased to announce the launch of the fresh new website at www.ypbsystems.com

The new website is a central hub where customers, consumers and investors can view the latest technology innovations from YPB in its efforts to fight counterfeit.

Investors can access the latest announcements and keep up to date with industry and YPB news.

This is just the first step for YPB and its online presence, as we roll out greater plans to integrate with our mobile anti counterfeit strategy and allowing consumers to access information on counterfeit products.