YPB lands another three-year commercial deal – this time with a leading ASX dairy company
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YPB also retired a $1.45m convertible note facility in full as it drives towards operational profitability.
Product tracing and anti-counterfeit technology company YPB Group (ASX:YPB) continued its strong run of recent deal flow with another market update this morning.
The company advised that it’s signed a three-year Master Service Agreement (MSA) with the listed Australian Dairy Nutritionals Group (ASX:AHF).
It marks the latest commercial partnership for YPB’s technology suite, which included a separate three-year, revenue generating deal last month with Kingtons Technology Co Ltd – an electronic cigarette and vaporiser technology manufacturer based in Shenzhen, China.
Under the key terms of the deal, AHF will appoint YPB as the “preferred supplier of serialised QR codes to their products”, the company said.
Included in AHF’s brand suite is a new line of premium infant formula products – Gradulac Gentle — which will incorporate YPB’s QR tracing technology to ensure authenticity.
The anti-counterfeit technology is implemented through YPB’s CONNECT platform – an integrated SaaS-based platform that facilitates anti-counterfeit measures as well as supply chain efficiencies through the use of serialised QR codes.
The three-year term of the deal can also be extended for a further two years by either party.
Commenting on the deal, YPB chairman John Houston said it marks evidence of the company’s management team to both target appropriate markets for the company’s technology, and also execute on deals within those markets.
AHF’s Camperdown dairy in Victoria “has a proud and long history, and I look forward to YPB helping AHF drive the value of its brands and grow the lifetime value of its customers through direct, technology-enabled consumer engagement,” Houston said.
YPB also demonstrated further proof of its operational momentum through a separate announcement this morning – the repayment of a $1.45m convertible note facility originally issued in November 2018.
Importantly, the whole amount of principal and interest in connection with the loan has now been retired directly, without being converted into equity.
As a result, the security against YPB’s assets has also been removed.
While thanking investors for their support, Houston said the retirement of the loan is reflective of the company’s improved operating position as it lays the platform for further growth into 2022.
The $1.45m loan facility “was secured when the company was less technically and commercially developed”, Houston said.
However, “the advances made over the past three years are being increasingly recognised by providers of patient equity capital”.
“It is the board’s strong intention to progress toward a self-funding enterprise as rapidly as possible, without further resort to external borrowings”.
This article was developed in collaboration with YPB Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.