Resolution # 4 which was the seeking of shareholder approval to convert $2.25m of loans provided by JH (via his related companies) into YPB shares with issue of 1.5 billion shares, plus 500 million free standing options at 0.3c, plus payment of interest to JFHH of $29,811.78, was put to shareholders on the understanding that the swap of debt to equity in YPB would happen ASAP and within 30 days of the AGM.
It is now 30+ days after the AGM and still no announcement advising that this conversion took place. It is worth pointing out that $1m of JH's loans was to have been converted to equity before October 3, 2023 but which was deferred until June 30, 2024 at the agreement of JFHH.
It seems that many commitments made in YPB's announcements have little regard for the truth and YPB's true intentions thus making a mockery of the ASX announcement process when they have been so regularly violated by YPB.
The only person/interests benefiting from this delay is JH. At a probably interest rate of around 17.5%, the $2.25m loan funds provided by JH amounts to just under $400k per year or $100k per quarter. When looked at this way, why would JH be in any hurry to swap this guaranteed income flow for shares in YPB when there is no dividend payment, when YPB's share price is still stuck around 0.2c? Further, JH has tied to the loans a deed of Security over YPB's assets and which will be extinguished once the swap for shares takes place.
If you suspect shareholders have been given the 'short end of the stick', you are definitely on the right track.
It will be interesting to see what YPB's financial state is. YPB started the June quarter with about half of what they need to keep afloat. JH's loans are described in the AGM explanatory notes as being the "lender of last resort", and that "JH has no intent to inject further capital into the company". Attempts to pump up YPB's share price have had very little impact, with the massive debt, JH's charge over the assets of YPB, and that many of their professional and sophisticated investors getting badly burnt on the 2023 $2m CR, YPB is is no position to do another CR in the very near future. I think YPB's withdrawal of its consolidation resolution is also their recognition that they cannot go ahead with the $4m CR in the immediate time frame.
That there have been no YPB announcements for at least a whole month now foretells that things aren't going well for YPB.
YPB Price at posting:
0.2¢ Sentiment: Sell Disclosure: Not Held
