Australian blockchain heavyweights have joined forces to back YPB Group’s $30m token issue, making it the first ASX-listed company to launch a utility token.
YPB Group (ASX:YPB) has developed patented anti-counterfeit marks, called ‘Motif Micro’, that can be scanned through a smart-phone app to achieve highly secure two factor product authentication.
Motif Mirco aims to be the solution to the emergence of dodgy QR Codes, which are being used to make fake products appear genuine.
Funds raised by the YPB token offering will be used to commercialise Motif Micro and to blockchain-enable YPB’s authentiction app and customer engagement platform.
The consortium will also be providing a capital injection of $1.5m through a convertible note – because while YPB is hopeful of a $30m token offering windfall, the company’s current cash position is dire.
Along with the convertible note, YPB has raised a further $1.62m in new equity at $0.018 per share with one free attaching 18 month option with an exercise price of $0.025.
The raise will result in the issuing of 90 million new shares and 90 million new options, subject to shareholder approval.
Commenting on the announcement, YPB’s Executive Chairman John Houston said the token offering has commenced later than the company first anticipated.
“We did not plan to be raising further equity but our token issue fell well behind schedule for reasons beyond our control,” he said.
“That has proved a blessing in disguise as the impeccable credentials and capacity of our new strategic partners means the probability of a successful token issue is now extremely high.
“A successful token issue will be a boon for YPB, possibly creating material shareholder wealth and robust financial strength”.
YPB Group’s quarterly for the period ending July 31, showed cash and cash equivalents at the end of quarter of $377,000.
Cash outflows for the next quarter (current quarter) were estimated at $1,735,000.