The rapid growth of cross-border commerce in South East Asia and China has brought with it a tsunami of counterfeit goods in the marketplace.
And in recent years, retailers and officials have been struggling to stem the counterfeit tide.
Now an Australian company that specialises in the prevention of counterfeit goods, has secured more than $3.2 million in investment funds to take its technology to the next level.
YPB, has developed new world-leading smartphone readable anti-counterfeit technology, that is set to change the game.
The company announced yesterday it had secured a $3.12m investment commitment from strategic blockchain partners and equity investors on the back of the new technology.
The ASX listed YPB Group has executed a binding term and token sale agreement with First Growth Funds, DigitalX Limited and Blockchain Global Limited to provide funding and token sale advisory services.
Oversubscribed equity placement
The three strategic investors will provide $1.5 million in secured convertible note funding to accelerate the company’s upcoming token issue which was announced to the ASX last month.
YPB has secured an additional $1.62 million in an oversubscribed equity placement. The Convertible Note will be subject to shareholder approval at an EGM to be called soon.
YPB’s CEO and Executive Chairman, John Houston, said: “It is exciting to see the overwhelming interest for YPB’s IP-protected world-beating secure smartphone serialisation solution.
“The commercial prospects of this breakthrough are quickly being recognised globally and we are looking forward to an exciting roadmap ahead.”
The YPB technology integrates secure anti-counterfeit marks into quality brands’ packaging to deliver certainty of authenticity of the product and this authenticity triggers consumer engagement.
Cost reduction initiatives
The investment was structured by First Growth Funds, which enlisted support from DigitalX and Blockchain Global.
The funds will be directed towards a sales and channel strategy plan agreed by the parties. YPB will also implement corporate cost-reduction initiatives.
DigitalX and Blockchain Global have agreed to advise and assist YPB with the development and distribution of the “YPB token” and to introduce the Tokens to international exchanges.
DigitalX CEO Leigh Travers said: “We are pleased to advise publicly listed YPB on its upcoming token issue and are excited to see Blockchain technology applied to solving a real world problem of ensuring that fake goods do not infiltrate the supply chain for Australian businesses.”
Blockchain Global CEO Sam Lee said YPB’s technology creates strong opportunity in the Asian markets.
“We look forward to seeing Blockchain technology enhance its penetration,” Mr Lee said.