CODEIFAI LIMITED — Regulatory Filings 2019

Jun 25, 2019

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ASX ANNOUNCEMENT

ASX: YPB | 26 June 2019

Token project terminated

Product authentication and consumer engagement solutions provider YPB Group Ltd wishes to advise that it has determined not to pursue its token project and the parties to the governing Token Facilitation and Listing Agreement have agreed to terminate with immediate effect.

The token project was initially announced on 23 April 2018 and subsequent updates were announced as planning and preparations for the token launch advanced.

Summarily, the Board pursued the token plan as its analysis at that time demonstrated clear merit for shareholders through the potential to both, add a layer of incentive to accelerate the adoption of YPB’s product authentication solutions, as well as provide nondilutive funding through the sale of tokens.

While a significant amount of investigation and preparatory work was completed, no tokens were ever created by, or for YPB. YPB now confirms that it has no intention of issuing its own token.

YPB acknowledges that during the time it has been working on its token project that the market for tokens has materially changed in respect to the liquidity and demand for new utility tokens such that in the opinion of the Board, it is unlikely that a token issue would be successful in raising material funds as originally envisaged.

Furthermore, YPB also acknowledges that the evolving regulatory framework presents an increasing risk and cost profile with future unknowns that could potentially impact on YPB’s broader business, and the Board has decided that the exposure is no longer in the best interests of shareholders.

The Company confirms that there are no outstanding fees or other continuing obligations of which it is a party in relation to the token project.

While the token project will not proceed, YPB confirms that the incorporation of Blockchain remains on the Company’s product development roadmap for its product authentication solutions. Blockchain functionality is now offered by a number of third party providers as a Backend-as-a-service (BaaS) ‘plug&play’ solution on a subscription basis. A simple potential example of the application of Blockchain for YPB that is being investigated is the Blockchain verification of consumer scans of YPB products. The Company will provide further updates on the product development roadmap as part of a broader business update to be released to the market in the coming days.

For further information please make contact via email: investor@ypbsystems.com

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