8 November 2017
Early Equity PLC
(“Early Equity” or “the Company”)
Equity Subscription and further investment in Yicom Global Sdn Bhd
Early Equity is pleased to announce that the Company has raised GBP590,000 by way of a subscription for 98,333,334 new ordinary shares of 0.1p at a price of 0.6p per share (the “Subscription”). The new funds raised will be used as working capital.
Early Equity is also pleased to announce that it has acquired a further 60,000 units of fully paid up share capital of Yicom Global Sdn. Bhd. (“Yicom”). Our total interest in Yicom is now 188,571 shares representing 47.14% of its issued capital. The issue of 30,000,000 new shares of Early Equity has financed the Investment.
Yicom is the sole importer and patent holder of a series of healthcare products from various countries and in particular China. Yicom has a Sole Distributorship Agreement with Early Infinity Holdings Sdn. Bhd. a direct sales company holding licences to operate a multi-level marketing business in Malaysia.
Yicom started trading in February of 2015 and on 1 December 2015, Early Equity announced it had acquired a 32.14% stake in the company. In August 2016, Yicom released its maiden audited accounts and reported a net profit of Ringgit Malaysia (RM) 850,149 (approximately GBP160,709) on a turnover of RM 4,061,634 (approximately GBP767,795). The Directors of Yicom also declared that 50% of the profits were to be distributed to the shareholders as a dividend and Early Equity received RM 136,619 (approximately GBP25,826). Exchange rate was based on RM 5.29:GBP1 at that time. The 2017 Yicom accounts (up to 31/01/17) have been released and on a turnover of RM3,749,407 (GBP678,000), the company reported a net profit of RM904,645 (GBP163,589) The Directors of Yicom have declared that 50% of the profits are to be distributed to the shareholders as a dividend and Early Equity will receive RM 108,800 (approximately GBP19,675). Exchange rate is based on GBP 1 : RM 5.53. Yicom management accounts currently project a net profit of around RM2.7M (approximately £488,000 at today’s exchange rate of GBP1 : RM5.53) for the seven months period from February 2017. Turnover for the last seven months (Feb-Aug) has increased significantly to RM 7,762,180 (approximately GBP1.4M) and on a linear basis forecasts a turnover for the financial year (ending January 2018) to be around RM 13M (GBP2.35M).
The Company has also granted Alexander David Securities warrants to subscribe a number of shares at the issue price with an amount equal to 5 per cent of the value of the placing shares of £20,000.
Following the issue of the shares above, Early Equity has a total of 775,220,335 ordinary shares of 0.1p in issue carrying voting rights. As a result the Company is aware of the following interests in the share capital of the Company:
Shareholders may use the above figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Early Equity under the FCA's Disclosure and Transparency Rules.
The 128,333,334 new ordinary shares will be admitted to trading on NEX Exchange Growth Market today, 8 November 2017.
The following parties have an interest of more than 3% in the shares of the Company:
Shareholder Name Number of Ordinary Shares Percentage Holding
Yicom Infinity Sdn Bhd 193,250,000 24.93%
Dieh Siew Huat 48,627,139 6.27%
Chin Chin Sing 41,211,330 5.32%
Vidacos Nominees Limited 25,958,344 3.35%
The directors of Early Equity Plc accept responsibility for this announcement.
For further information please contact:
Tel: +44 7830 182501
NEX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott –Corporate Finance
James Dewhurst – Institutional Sales
Telephone: +44 (0) 20 7448 9820
49 Queen Victoria Street, London EC4N 4SA