Testament of confidence: YPB locks in $1M in funding from its own top dog

Mon 03 Oct 22, 11:00am (AEST)
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Key Points

  • YPB Group has acquired a A$1M loan facility; an announcement it made to the market today. Interest rates are over 9%
  • Gives microcap further funds to advance its anti counterfeiting digital products catalogue into Asian markets
  • YPB will pay a $20,000 fee for the facility; as well as 200M options at 0.5c expiring in three years

YPB Group’s (ASX:YPB) founder John Houston will pay himself $20,000 for the provision of a $1m loan facility to his own anti counterfeiting tech company, YPB Group. 

Under a “reference NAB facility rate plus 9%” interest, YPB Group will also give the consideration to Houston, as well as 200m options at half a cent each. The loan facility is on a twelve month term. 

If that seems like a strangely messy affair to you, you’d be forgiven for thinking so. But at the end of the day, it’s hard times for microcaps of all flavours, and especially niche market players like YPB group. 

Anti counterfeit app on major app stores 

Back in August, the company saw its low-cost anti-counterfeit disruptor product MotifMicro hit major app stores. 

MotifMicro is a YPB-owned solution which can detect phosphor in the form of ‘invisible ink’ applied to products to guarantee legitimacy. Phosphor glows green under UV light, but is otherwise invisible to the naked eye.

The big takeaway: YPB Group sells phosphor inks to business consumers for use on the manufacturing line, where the phosphor (or invisible ink, if you will,) acts as a maker’s mark. 

This could be utilised by retail consumers double checking they’ve really ordered what they paid for, but YPB Group is more interested in turning its AI-supported solution to B2B applications. 

YPB Group is ultimately reducing the cost of UV scanners for industry, with workers set to be able to use handheld devices, which the company is optimistic will lower costs, and reduce the incidence of counterfeit onselling. 

Penetrating South Korea 

Back in June, the company made its first ever inroads into the South Korean market. 

The company announced execution of the first sale of its ProtectCode product to South Korea, with Scranton Limited taking the tech package on board. 

Scranton has purchased YPB's ProtectCode with an anti-copy feature embedded into the software package. 

Scranton Limited is an importer, distributor and sales agent in Korea handling the trade of plastics, chemicals, and end products, often selling to cosmetics, packaging and chemicals companies.

YPB's three month charts. Is this stock being overlooked?
YPB's three month charts. Is this stock being overlooked?
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. YPB was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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