Supply @ME Capital PLC Inventory Funding: Year-End Update (2525K)
December 31 2020 - 1:00AM
UK Regulatory
TIDMSYME
RNS Number : 2525K
Supply @ME Capital PLC
31 December 2020
31 December 2020
Supply@ME Capital plc
(The "Company" or "SYME")
Inventory Funding: Year-End Update
Supply@ME Capital plc, the innovative fintech platform which
provides the Inventory Monetisation(c) service to manufacturing and
trading companies, is pleased to provide the following update on
its first securitisation issuance, co-arranged and distributed by
StormHarbour Securities LLP.
SYME and StormHarbour have now successfully completed the legal
documentation, process definition and operating structure for its
repeatable and scalable securitised investment product. The
eligible Client Companies are ready to implement the inventory
monetisation process and their financial advisory teams (including
external auditors numbering among them two of the Big4 ([1]) audit
firms) have approved the structure and derecognition accounting
treatment of the inventory monetisation transaction.
In the Update of 30 November 2020, SYME stated that one of the
objectives of this period of work on the Open-Funding
securitisation model has been to create a new Inventory
Monetisation asset class that reflects best practice principles in
the securitisation market. The completion of this stage now enables
SYME to programme a series of securitisation issuances that,
together with cornerstone investment from its Captive Bank
operation, should provide access to a deeper, ongoing pool of
capital, facilitating the provision of the inventory monetisation
service across several active geographies.
Further steps towards the implementation of this wider
securitisation programme with the Inventory Funder include
negotiations regarding:
-- a move from the "single transaction" to an Inventory
Monetisation programme for the whole of 2021; SYME expects that
this "size-increase" combined with a more flexible funding
structure would allow the Platform to monetise its entire current
portfolio of eligible Client Companies across a series of
securitisation rounds;
-- a potential minority equity investment by the Inventory
Funder in the capital of the Company; and
-- given the funding capacity of the Quadrivio Group, a widening
of discussions relating to their involvement in all securitisation
issuances, via the Captive Bank.
Early in the New Year, the eligible Client Companies will
receive a formal, confidential communication from SYME disclosing
the identity of the Inventory Funder and the time-table to execute
their individual inventory monetisation transactions. Shortly
thereafter, the Company intends to disclose to the market the
identity of the Inventory Funder, the key features of the Inventory
Monetisation programme and the targeted positive revenue impact for
SYME.
The Company expects to make these disclosures within the next
month once the Inventory Funder confirms its release from the
non-disclosure agreement or as required by market disclosure
regulations.
Supply@ME enables businesses to generate cashflow, without
incurring debt, by monetising their existing stock. Before a
business has found an end-customer for its inventory, the Supply@ME
platform enables them to sell ("monetise") their stock and receive
cash immediately to boost their working capital. The Supply@ME
service enables strong companies to improve their working capital
cycle. SYME does not monetise inventory for companies in financial
difficulty or with inventory that they are struggling to sell.
Contacts
Alessandro Zamboni, CEO, Supply@ME Capital plc,
investors@supplymecapital.com
Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780;
paul.vann@walbrookpr.com
Brian Norris, Cicero/AMO, +44 (0)20 7947 5317
[1] The Big Four is the nickname used to refer collectively to
the four largest professional services networks in the world,
consisting of Deloitte, Ernst & Young, KPMG and PwC.
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