Brand Protection and Customer Connection solutions company YPB Group Ltd (ASX:YPB) has raised $5.0m via a placement to sophisticated and institutional investors.

- YPB raises $5m part of which is subject to shareholder approval

- Stock suspension requested until February 15th pending final execution of strategic relationship

Capital raise

The placement will be in two tranches. The first tranche is $3.8m with the balance of $1.2m subject to shareholder approval at an EGM at the earliest possible date, presently expected to be March 2nd. Tranche 1 accounts for 76% of the funds raised with an issue price of $0.04557 in accord with the specific shareholder approval of 27 November 2017 and each share has 0.3307 of a free attaching 12 month option with an exercise price of $0.001. The option issue is subject to shareholder approval. Tranche 1 shares and options total approximately 109.3m. Tranche 2 shares total approximately 34.6m and will have an issue price of $0.035. Following approval of and conversion of the options and issuance of the tranche 2 shares the average placement price will be $0.035 and a total of approximately 143.9m shares will have been issued. Funds will be used to complete the purchase of Motif Micro, to terminate the Bracknor convertible funding facility and for general working capital.

Voluntary trading suspension

YPB has fully agreed a strategic relationship which Directors believe will prove material to the Company's future and stock price. Final contractual execution is imminent but is subject to the partner's internal processes and a date for final execution cannot presently be specified. Consequently, the company has requested the voluntary suspension be extended to February 15th 2018. Should contractual execution occur before that date application will be made to the ASX to lift the voluntary suspension.

YPB Executive Chairman John Houston said: "While it is again most disappointing to be raising equity with such a weak stock price, the strong participation by long-standing supporters should be encouraging to all shareholders. 2018 will be a transformational year for YPB and with some exciting developments in train, we anticipate being be able to demonstrate significant strategic progress to shareholders in the near term."

About YPB Group Ltd

In a rapidly changing world, brands need to do more than make great products, they need to PROTECT their consumer by allowing them to verify that their purchase is real and as a result buy with confidence. This is a proven initiative to trigger the consumer to CONNECT with brands.

YPB Group Ltd (ASX:YPB) provides real protection for quality brands with a focus on product authenticity. Simultaneously, we provide a gateway for brands to connect with their consumers and engender trust in authenticity by utilising the power of the smartphone.

In an evolving marketplace and with the rapid growth of cross border commerce, YPB leverages serialisation and patented authentication solutions so that insightful data can flow between brands and their consumers.

YPB is the obvious choice to PROTECT, DETECT and CONNECT.



Mr. John Houston
Executive Chairman
YPB Group Limited
T: +61-458-701-088

Mr. Gerard Eakin
YPB Group Limited
T: +61-427-011-596

Link: $5m Placement and suspension update

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