Resumes Trading Following Capital Raise and Important Strategic Partnerships
Sydney, Mar 26, 2018 AEST (ABN Newswire) - Brand Protection and Consumer Connection solutions company YPB Group Ltd (
ASX:YPB) will lift its voluntary suspension and resume trading on the ASX today following the conclusion of two highly strategically important partnerships.
- $1.087m raised in s708 Placement to sophisticated investors
- AliHealth partnership to drive profitability of YPB's China business
- Australian Made partnership to drive scale and profitability of YPB's Australian business
- These two partnerships evidence the significant progress made recently in the business
The first is with AliHealth, a subsidiary of Alibaba Group, appointing YPB as an Independent Software Vendor (ISV) of the AliHealth supply chain traceability platform for the China market. YPB is the first commercial company to be appointed as an ISV by AliHealth. This opportunity charts a clear path to profitability for YPB China by expanding the China-specific product suite and broadening the potential client pool due to the prominence and reputation of AliHealth's parent company.
YPB's other very important strategic partnership is with the Australian Made Campaign to offer its full PROTECT DETECT CONNECT product suite to Australian Made's 2700+ licensees. Information about YPB's products will be available via the Australian Made website (www.australianmade.com.au) from May 2018. This will be YPB's first online referral portal with the potential to reach 2,700+ Australian Made licensees and over 20,000 individual products. This development is expected to contribute to shortened sales cycles and accelerated market penetration and has the potential to drive significant scale and profitability in YPB's Australian business.
Capital raise completed
YPB advises that it closed its recently announced capital raise as at close of business on Friday 23 March 2018. The Company successfully raised $1,087,000 at $0.035 per share and as a result approximately 31m new shares will be issued to both new and existing sophisticated investors. The issuance of the shares will be finalised by 28 March and will be from the Company's capacity under Listing Rule 7.1. Funds raised will be utilised for the ongoing development of the Motif Micro technology and general working capital.
YPB Executive Chairman John Houston said: "These two partnerships are the most valuable YPB has achieved in its short life. Both have the potential to allow the business to scale far more rapidly than has been the case to date and their profit impact is expected to be significant. They are reflective of the progress we have made since I resumed operational leadership in July 2017 and we expect to demonstrate further progress over coming months and to hit our $5m pre-tax profit target for 2018. I am grateful for the ongoing support of our shareholders and stockbroking colleagues and anticipate this period of reliance on new equity drawing to a close."
About YPB Group Ltd
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