TIDMSYME
RNS Number : 8557Z
Supply @ME Capital PLC
26 May 2021
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26 May 2021
Supply@ME Capital plc
(The "Company" or "SYME")
TradeFlow Capital Management ("TradeFlow") Update:
Share Purchase Agreement signed
Further to the announcement made by the Company on 19 April
2021, SYME is pleased to confirm that the Company has signed a
Share Purchase Agreement ("SPA") to acquire the entire issued share
capital of TradeFlow Capital Management Pte. Ltd.([1]) , the
leading Singapore-based FinTech-powered commodities trade enabler
focused on SMEs.
The acquisition will enable SYME to further enhance its
Platform, delivering a global inventory monetisation service,
including the monetisation of both inventory "in-transit" (in
particular, commodities), and warehoused goods.
It is intended that the consideration for the transaction will
be settled in two parts.
Firstly, at the Completion Date expected by the end of June
after the finalisation of the necessary regulatory and
administrative procedures:
-- an amount of GBP4 million will be paid in cash; and
-- the Company will issue 813 million new SYME shares at market
price to the TradeFlow sellers which represents less than 3% of the
Company's issued share capital.
Secondly, earn-out payments covering the period from January
2021 to December 2023, made in cash or shares at the choice of the
Company, based on TradeFlow achieving annual revenue targets
commensurate with the business plan that underpins its valuation.
TradeFlow has been valued at approximately GBP31m by an independent
valuation company. The valuation is based on the positive track
record of funds launched, the Intellectual Property rights related
to the proprietary digital platform ("TradeFlow+") and the
TradeFlow business plan to 2025.
The Company intends to fund the initial cash component of the
transaction from an investment of fresh capital being finalised
with a group of new institutional investors.
Given the transaction and forward movement of the Company, SYME
will be expanding its Board of Directors to bring in additional
banking and legal experience, including the appointment, after
completion and pursuant to the Company' nomination procedures, of
Mr Tom James and Mr John Collis, the Co-Founders and Directors of
TradeFlow, who will be key members of the combined business.
Parzival Partners Ltd([2]) and a team of financial services
professionals ("Intermediaries") introduced and supported the
transaction.
SYME will provide further updates as the completion and funding
processes are delivered.
Following the achievement of this important milestone for the
Company, SYME is pleased to confirm that the 2020 Statutory Audited
Financial Statements are being finalised, with publication expected
next week.
Alessandro Zamboni, Chief Executive, Supply@Me Capital PLC,
commented: "We are pleased to reach this next milestone for the
Company with the signing of the Share Purchase Agreement with
TradeFlow. We have been continually impressed by the quality of the
business that Tom and John have built, having established
themselves as a respected funder for inventory in transit,
particularly among SME-sized businesses. By bringing TradeFlow into
the Supply@ME stable, we will have an offering for the supply chain
sector which surpasses anything available globally, with vast
opportunities to create even more value for our investors."
John Collis, Chief Risk Officer and Co-Founder of TradeFlow
Capital, commented : "Signing the SPA with Supply@ME brings us to
the next phase of TradeFlow's growth. The economic and physical
challenges throughout the pandemic have left many businesses with -
even if it is a cliché to say so - an unprecedented set of supply
chain issues for goods on the move. We look forward to joining
forces with Alessandro and his team in due course, and improving
the working capital position of even more businesses with the
backing of Supply@ME."
Tom James, Chief Executive Officer and Co-Founder of TradeFlow
Capital, added: "Our non-credit approach to enabling physical
commodity import/export transactions is unique in the trade finance
hedge fund world, as is Supply@ME's approach to inventory
monetisation for manufacturing and trading businesses. The
combination of the expertise in TradeFlow Capital and Supply@ME ,
will broaden our shared geographic footprint and create a global
digitised offering which will create a number of benefits from both
a funding , technology and customer origination perspective. We
look forward to the close of the transaction in due course."
Notes
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] www.tradeflow.capital
[2] www.parzivalpartners.com
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