17 August 2018
Early Equity PLC
(“Early Equity” or “the Company”)
Lifting of suspension of its shares
Resumption to Trading
Following a Suspension of the Company’s shares on the 16 May 2018 the Directors are pleased to announce the lifting of the suspension in their shares.
The trading in the Company’s shares on the NEX Exchange Growth Market will commence at 8:00am on Monday 20 August 2018.
Formation of the EI Nominee Company
The Company wishes to report that historically a number of off-market trades in its securities have taken place due (in part) to the granting of shares, as a gift to agents of Early Infinity Holdings Sdn Bhd (“EI”) to support the Company’s investment into Yicom Global Sdn Bhd (“Yicom”) and EI. Early Equity holds 188,571 ordinary shares in Yicom (representing 47.14% of its issued capital) and 60,000 ordinary shares in EI (representing 4% of its issued share capital).
EI is the holder of the sole distribution agreement for all Yicom products. EI employs agents in Malaysia, and other countries in South East Asia in a multi-level marketing company, which sells Yicom products.
EI has, to date, incentivised its Agents by gifting them shares in Early Equity. These gifted shares have not been reported to the market as trades, as they were deemed a gift and not a purchase. When Agents cease to be an Agent of the Company, if they have not met certain targets the shares are gifted back to allow for their placement with new Agents.
Following a review by the NEX Exchange it has been agreed to change how these shares are distributed.
Early Infinity Holdings Sdn Bhd (“EI”) has agreed to establish a new Nominee Company to be incorporated in Malaysia (the “Nominee”) that will be 100% owned by EI. The role of the Nominee is to hold all shares issued by EI to Agents, with this new process in place the direct transfer of shares to agents will cease. A key feature of the new process is to issue new Agents with a warrant certificate, which will have the identical terms and conditions on the existing shares issued to Agents in accordance to their performance
In the initial process the shares granted to agents were issued for a nil consideration, as provided in the agent agreement the warrants will also be issued at a nil consideration. In the event that the Agent Agreement is terminated, and the agent has not performed and met certain sales targets, the warrant certificate will be cancelled.
With the new process in place, the Nominee Company will have one role, which is to hold shares for the benefit of Agents of EI. The directors of the Nominee will have overall responsibility of managing the issuance and cancellation of warrants.
The Directors of the EI Nominee Company will be Tee Lian Zu and Ng Kok Beng who have no involvement in the day to day running of Early Equity or EI and do not hold any shares in the Early Equity.
There are currently 371,233,139 shares representing 46.73% of the issued share capital of Early Equity with EI Agents. Initially the Company expects to receive back into the EI Nominee Company approximately 50,000,000 shares representing 6.29% of the shares in Early Equity.
Current trading and future prospects
The Company has received management accounts from Yicom that are currently being audited up to 31 January 2018. The figures indicate an increase in turnover and profit compared to the previous year. The increase in sales has been driven by the expansion of EI agents both numerically and geographically. EI are now operational in Malaysia, Singapore, Hong Kong, Taiwan, Indonesia, Japan and Thailand. Yicom are seeking additional regulatory approvals in the People’s Republic of China (‘PRC’) to officially launch and expand their product offering within the territory of PRC. Last year (audited accounts year end 31/01/17), Yicom issued a dividend payment of Ringit Malaysia RM 426,934 (£84,026 at an exchange rate of £1:RM5.20) to its shareholders. Yicom have not yet declared a dividend for the current year.
The Company continues to monitor its smaller investments in other entities and continues to seek further acquisitions that meet its investment criteria and to raise additional funds when suitable opportunities are present.
The directors of Early Equity Plc accept responsibility for this announcement.
For further information please contact:
Tel: +44 7830 182501
NEX EXCHANGE CORPORATE ADVISER:
Alexander David Securities Limited
David Scott – Corporate Finance
James Dewhurst – Corporate Broking
Telephone: +44 (0) 20 7448 9820