YPB Group Limited announced a private placement of 1,000,000 secured convertible notes at a price of AUD 1 per convertible note for a principal amount of AUD 1,000,000 on October 3, 2022. The transaction will include participation from Jf Houston Holdings Pty Ltd. The notes will bear interest rate at National Australia Bank Fixed Mortgage Rate plus 9%. The notes will mature after twelve months from the date of issuance.

The noteholder may elect to convert all or some of the convertible notes into shares. The conversion and issue of shares in respect of the convertible notes is subject to shareholder approval. At any time during the outstanding period, the company may redeem all the convertible notes by giving the noteholder five business days written notice of the redemption and paying the outstanding amount unless fully converted or redeemed by the company, the company must redeem all convertible notes by repaying the outstanding amount on the termination date.

The transaction is subject to shareholders approval in the general meeting to be held on December 23, 2022. The maturity rate of securities is on October 3, 2023. The Conversion Price means the lower of the 25% discount to the 20 Day VWAP ending on either the first Advance Date or Conversion Date, but subject to a conversion floor price of no lower than AUD 0.002 per Share.