YPB Group Ltd (ASX:YPB) has received strong commitments from institutional, professional and sophisticated investors in a placement which has raised up to $3.6 million to fast-track the company’s growth plans.
Funds raised will also give the company financial flexibility to pursue agreements with new and existing channel partners.
This channel partner strategy is aimed at providing YPB with a large customer base and profit potential.
The strategy multiplies sales resources by leveraging partners with existing customers in need of YPB’s solutions, allowing high volume and recurring opportunities.
“Strong vote of confidence”
YPB Group CEO John Houston said: “This investment from professional and institutional investors represents a strong vote of confidence in our growth strategy and provides significant financial flexibility to aggressively pursue our reinvigorated focus of leveraging channel partners in high-volume industries.
“The company thanks the placement participants for their support and welcome them to our register.”
Under the placement, YPB will issue 1.27 billion fully paid ordinary shares at 0.283 cents per share and one free attaching option exercisable at 0.5 cents per option expiring 12 months from the date of issue for every share issued.
Placement shares will be issued in accordance with shareholder approval obtained on July 22, 2020, and by utilising the company’s existing capacity.
YPB will seek separate shareholder approval to issue the placement options.
Subject to meeting all necessary regulatory requirements, the company also intends to seek ASX quotation of the placement options.
EverBlu Capital Pty Ltd acted as the corporate adviser and lead manager for the placement.
YPB Group is an Australia-based product authentication and consumer engagement solutions, provider.
The company's proprietary smartphone-enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumers’ engagement.
YPB is mainly focusing on dairy, cannabis, alcohol and cosmetics where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers.