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DJ Early Equity Plc Lifting of suspension of its shares

 
TIDMEEQP 
 
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 (GBP 
84,026 at an exchange rate of GBP1: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: 
Greg Collier 
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 
http://www.ad-securities.com 
 
 
 
END 
 

(END) Dow Jones Newswires

August 17, 2018 11:47 ET (15:47 GMT)