YPB Group Ltd (ASX:YPB) $5m Placement and Suspension Update

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."


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