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ASX Tech Company Creates Solution to $1.7 Trillion Global Problem? The sales of fake products are big business. Legitimate companies lose $1.7 trillion a year to this filthy trade. Global brands are desperate to stamp out fake products – to protect consumers, and their own bottom line... We have recently made an investment in an ASX listed tech company who has developed unique technology to detect if goods are counterfeit, and protect consumers from buying them. The technology involves applying invisible rare earth tracer material to legitimate goods, which are only detected by this company's inexpensive, handheld scanners. The technology is being sold right now in China, to companies serious about protecting their products and brand. A recent deal with a high quality Chinese ink manufacturer could bring in as much as $16M AUD – but we are expecting many more global deals to flow in 2015... No wonder global brands are starting to cotton on to the anti-counterfeiting technology our latest ASX listed investment provides… This company has developed cutting edge technology that can detect if goods are counterfeit and protect consumers from buying them. The technology involves the application of invisible, rare-earth tracer material onto goods, which can then be detected by an inexpensive handheld scanner. This company sells both the invisible tracer material and the handheld scanner – essentially selling the peace of mind and confidence that a product is the real thing. By the end of 2014, the company had completely sold out of its first generation of handheld scanners, underestimating demand. This technology can be applied to any product – from alcoholic beverages to shoes and handbags to pharmaceutical drugs like erectile dysfunction and malaria pills. This company is the only one certified in China that sells invisible tracers. Multiple global brands in the USA are also lining up to do business with our company – fakes are becoming a very expensive problem. This company is aiming big, and wants to put the ability to detect a fake into the hands of every manufacturer, retailer and eventually consumer in the world – to do this, its developed an app that can be installed on a smartphone, allowing the rapid detection of fake products. It’s invested $10M to date in R&D and its taken the company 4 years to get to this point. We have invested in this company now as we believe the global uptake of this technology is an imminent possibility given how relatively cheaply and easily the product could be globally scaled. A recent loyalty options scheme was closed heavily oversubscribed. After its successful IPO in 2014, we believe 2015 will be the year this company turns its plans into solid revenues, at solid margins. It’s just announced its first deal of the year – signing a 5-year contract with Shensaier, a Chinese company that sells high end UV printing ink to the Chinese tobacco and wine industry. On this deal alone, projected revenues to this company of $16M AUD… The company has estimated that if its technology were applied to the 123 billion cigarette packs sold in China annually,revenue of $146M would be realised… We expect more deals are on the horizon in 2015…
YPB Group ASX:YPB The YPB Group (ASX:YPB) is an anti-counterfeiting technology developer and provider, currently with a market cap of around $31M. Nearly 70% of the world’s fakes originate in China, so natural
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