More spin from JH and the YPB board! As if the spin dished out in the recent Preliminary Final Report wasn't enough to gloss over the fact that for YPB, 2023 was bad year. Consider the following;
1) A net loss of $4,459,632 which was 35% more than 2022.
2) Putting aside the $250k court settlement windfall, the sales revenue for 2023 was $427,888 compared to $555941 in 2022, a fall of 23%,
3) Despite equity placing of $1.5m, YPB borrowed more than $2m in 2023 and now have debt of over $2m. YPB's current liabilities at 2023 year's end exceeded its total assets by $3,408,431.PKF, in their Independent Auditor's Report stated that it was worth noting that this asset deficiency together with the $4,459,632 net loss for the year "indicate that a material uncertainty exists that may cast significant doubts on the company's ability to continue as a going concern".
The Annual Report mentions that JH intends to seek approval at the May AGM to convert $2m of his loans into equity. Given that we can't expect any bounce in YPB's share price by May, the conversion price will be less than 0.2c per share, but even at 0.2c per share, that requires a fresh share issue of 1 billion shares. Currently, there are 790m YPB ordinary shares issued. JH and his entities (JFHH and Bimm Corporation) currently hold 144m shares. When the $2m debt for equity swap occurs, the total number of shares on issue will be around !.79 billion, of which JH and his entities will hold around 1.144 billion shares, or about 64% of YPB's shares. Thus, for all intents and purposes JH will take control of YPB without having to buy back YPB from the Receiver should YPB's misfortunes go down that track. For the record, the books show YPB has net assets of $7,884,077 and over $86m of accumulated losses.
Come the end of this month with the release of the 4C Quarterly Activities and Cash Flow Report for the March 2024 quarter, we'll know more about YPB's true financial position. We should be able to see if the $250k loan will be sufficient to see YPB through the June quarter, and if not what fund raising options they have via the mandate given to First Pacific Capital.I have my doubts that YPB can do a capital raising given its current share price flat-lining at 0.2c, the impact on YPB's share price when 1 billion fresh shares are issued to JH, and the absolutely poor sales revenues running at 1/10th of YPB's costs.
YPB Price at posting:
0.2¢ Sentiment: Sell Disclosure: Not Held
