TIDMSYME
RNS Number : 4455D
Supply @ME Capital PLC
29 June 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
29 June 2021
Supply@ME Capital plc
(The "Company" or "SYME")
Captive Funding route:
Strategy Update, Term Sheet with Italian Banking Group
and structuring the first Italian inventory monetisation
Supply@ME Capital plc, the innovative fintech platform which
provides the Inventory Monetisation(c) service to manufacturing and
trading companies, is pleased to update the market regarding its
Captive Bank funding strategy and progress towards the first
inventory monetisation of its Italian portfolio.
The Captive Bank funding strategy outlined in the 2020 Annual
Report was designed to deliver the first Italian inventory
monetisation transaction through a partnership between the Company
and a bank that was to be acquired by a fund managed by Quadrivio
Group and The AvantGarde Group SpA.
Following discussions between the parties to secure further
progress towards the first inventory monetisation transaction and
shareholder value creation, Supply@ME has updated its Captive
Funding strategy to include the possibility of a direct investment
into a fintech bank owned by an Italian Banking Group (the "Fintech
Bank").
The Company has entered into an agreement ("Term Sheet") with
the Italian Banking Group and the Fintech Bank which envisages:
1. the signing of a commercial agreement to manage both the
origination of new Client companies and a multi-annual inventory
funding plan; and
2. the execution of a first inventory monetisation transaction
involving a portfolio of Italian Client Companies.
Simultaneously to the successful completion of the arrangements
above, Supply@ME will acquire up to 10% of the Fintech Bank, a
level which is below the threshold requiring regulatory approval.
An additional 10% of the Fintech Bank may be acquired at the option
of the Company within the following two years which would require
an authorisation process through the Central Bank. In April 2021,
the Fintech Bank was valued, by a Big4 ([1]) firm, at between
EUR34m - EUR50.6m.
The Term Sheet incorporates a binding commitment between parties
with reference to:
-- the time-scale, which envisages the completion of the
arrangements above in July, unless the parties agree to extend due
to internal authorisation processes or technical reasons. The Term
Sheet has a contractual longstop deadline of 30 September 2021;
-- the arranging and financing of an initial inventory
monetisation transaction of eligible Client companies to be agreed.
It is expected that the Italian Banking Group will involve the
Fintech Bank and third party investors to create a scalable funding
structure for follow-on transactions;
-- exclusivity of the strategic deal between the parties for transactions of this type.
SYME will update the market on the completion of the above
arrangements at which point it intends to announce the name of the
Italian Banking Group and Fintech Bank. These currently remain
confidential due to the strategic nature of the transaction.
Alessandro Zamboni, SYME CEO, commented:
" I am delighted to announce this agreement as a cornerstone of
our inventory funding strategy. We can now begin to structure the
monetisation of the first group of Italian client companies. This
is a key initiative for Supply@ME and we expect that it will serve
as the basis for an ongoing and scalable inventory funding
programme for Client companies, starting in Italy. We believe that
this will also provide further confidence to investors who have
been awaiting the news of our first monetisation.
We expect the agreement will create additional value for the
Company, given the opportunity to invest directly in a Fintech Bank
whose portfolio will grow as Supply@ME completes further rounds of
monetisation. This transaction reinforces the positioning of SYME
as an innovative fintech business, via non-credit transactions,
aimed at assisting with the working capital needs of SMEs and large
corporates."
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] The Big Four is the name to refer collectively to the four
largest professional services networks in the world, comprising
Deloitte, Ernst & Young, KPMG and PwC.
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