Agreement to Drive Revenues in US Security Printing
Perth, June 1, 2015 AEST (ABN Newswire) - The Board of Anti-counterfeiting technology Company YPB Group Limited (
ASX:YPB) ("YPB, the Company") is pleased to announce that it has entered into a binding Agreement with leading US printing company Continuous Forms Control Inc. ("CFC") to develop a sales and distribution platform and for the potential acquisition of CFC by YPB.
Key points
- YPB has entered into a binding Agreement with leading US printing company Continuous Forms Control;
* To jointly attack the printing and packing opportunities globally; and
* For a Sale and Purchase agreement for YPB to acquire CFC.
- The parties plan to aggressively target the printing market and integrate YPB tracer-scanner technology plus Brand Reporter
- Agreement will generate immediate revenues from product packaging, fashion labels and pharmaceutical brands
- Expertise is gained from the CFC team and YPB can execute further Brand Reporter and mobile applications that interact with packaging and labels
Under the Agreement, YPB and CFC will jointly develop a print management business ("business") which will utilise YPB's tracer-scanner anti-counterfeit technology, and CFC's print management technical know-how and manufacturing capabilities.
YPB has Identified the printing market as a significant revenue opportunity, and has quickly implemented this strategy and negotiated this new Agreement which is effective immediately. YPB's tracer product will be applied to the inks used in label printing, and then used in combination with its scanner to authenticate, plus Brand Reporter will be used to scan the printed codes on packaging.
CFC is based in California and has more than 40 years' in the printing and packaging industry. It has existing contracts in consumer packaging and apparel industries, supplying a range of items including buttons, rivets, tags and labels.
The parties will immediately utilise CFC's sales team to sell YPB solutions to existing and new customers of CFC. YPB will invoice the Brand or Client direct for printing solutions provided under the term of the Agreement. YPB will then pay CFC a rebate for sales made during the term of the Agreement.
YPB and CFC have 120 days from the signing of the Agreement to conduct due diligence and develop a business plan for the operation of the business moving forward, and also agree a Sale and Purchase Agreement for the acquisition of the CFC business by YPB.
The Agreement also brings 40 years technical experience and knowledge that has the potential to also drive new opportunities in revenue and efficiencies for YPB's operations in the Chinese and ASEAN markets.
YPB CEO, John Houston has said: "We are excited about the rapid and ongoing developments in our newly established USA business.
With this Agreement, YPB has clear sight of ongoing revenues and within the initial period of the Agreement we expect revenues from major apparel and fashion branded clients. We see great potential for this smart business model to control more of the supply chain of printing, resulting in the Company making margin on printing, packaging, codes as well as our tracer material, scanners and Brand Reporter. Basically it is a strategy to gain more share of customer spend as they move to incorporate anti-counterfeit measures into their packaging and supply chains."
Ralph Davis, Director and Founder of Continuous Forms Control has said: "We are extremely excited about this business opportunity and fully aware of the need for YPB products for our existing customer base, and through our network in the industry we see significant potential and we are ready to aggressively implement this strategy with YPB not only in USA but globally."
About YPB Group Ltd
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