YPB Lifts Anti-Counterfeit Game With US Acquisition
- Date: 23rd September 2014
- Category: Investor News
- Origin: The Australian
In glorious mindsight, YPB chief John Houston would not have listed the anti-counterfeiting mob via an existing shell company, former sapphire explorer AUV.
Generously, YPB’s backers left some crumbs for the residual AUV holders who took advantage of the largesse and stampeded out of YPB when it relisted at 20c apiece on August 7. “While our guys were escrowed, the shell guys smashed the shares,” Houston says.
OK, Houston we hear you loud and clear. But since then YPB stock has traded as high as 40c on YPB’s China-focused charter to smash the $1.8 billion counterfeiting market. YPB’s core product remains RealProtection, an invisible tracer that can be applied to anything from fabrics to food.
In the lead-up to listing, Houston was contacted by the US-based David and Sam Gonen, who run the tech incubator Curious Minds.
YPB acquired their brainchild Brand Reporter, a white-labelled, app-based product that enables brand owners to trace and detect knock-off goods.
While YPB has owned Brand Reporter for less that a fortnight, Houston says the likely pricing will be $1000-$5000 a month per company. “If we get 1000 brands at $1000 a pop — which is not impossible — that’s really good revenue,” Houston says.
In a fortunate coincidence YPB secured the services of Gold Coast-based marketing guru Randall Griffis. A criminologist and former intelligence agent — keep that one quiet — Griffis was willing to relocate his family to LA to run Brand Reporter.
One question is if Brand Reporter has such promise, why did the Gonens sell the IP to YPB for $US485,000? Houston says there’s a chasm between incubating an idea and commercialising the product — a point not lost on the Gonens, who took $US360,000 of the proceeds in YPB scrip.
We retain a spec buy, but expect a capital raising — sooner rather that later — to fund the expansion of Brand Reporter in the US and China.