TIDMSYME
RNS Number : 5568Y
Supply @ME Capital PLC
05 May 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION 2014/596/EU, WHICH IS PART OF UNITED
KINGDOM DOMESTIC LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU
EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR)
IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
5 May 2023
Supply@ME Capital plc
(the "Company" or "SYME")
Execution of first Inventory Monetisation(c) transaction using
traditional funding sources
SYME, the fintech business which provides an innovative fintech
platform (the "Platform") for use by manufacturing and trading
companies to access Inventory Monetisation(c) ("IM") solutions
enabling their businesses to generate cashflow, is pleased to
announce the execution of the first IM transaction using
traditional funding sources (the "IM Transaction").
This announcement follows recent Company updates, including the
RNS of 26 April 2023, when SYME disclosed that Supply@ME Stock
Company 1 s.r.l. ("StockCo") had secured a binding commitment
provided by an institutional investor (the "Investor") to invest in
the IM Transaction, pursuant to the Company's action plan to work
with a consortium of European investors to fund IM transactions
with monetisable value of up to EUR5m, as announced on 20 January
2023.
The counterparty to the IM Transaction is an Italian client
company, which is one of the market leaders in the tyre re-treading
sector with operations around the world (the "Client Company").
[1]
The IM Transaction has been structured as follows:
-- StockCo, the same entity which executed the inaugural IM
transaction which was announced on 12 September 2022, entered into
the commercial contractual package, with a duration of three years,
with the Client Company to execute the IM Transaction. Due to the
seasonal nature of demand for the Client Company's inventory and
fluctuating levels of inventory which it holds, the total value of
the warehoused goods to be monetised is forecasted as follows:
o EUR650k as an initial tranche;
o EUR550k as a planned tranche, with a best endeavours
commitment from both StockCo and Client Company to complete such
planned tranche before 31 December 2023; and
o throughout the duration of the IM Transaction, a potential
increase up to EUR10m of eligible inventory, by virtue of the right
of first refusal retained by StockCo.
-- with reference to SYME's wholly-owned subsidiaries:
o Supply@ME S.r.l. ("Supply@ME Italy"), acting as originator and
servicer, has in place an operating agreement with StockCo which
includes an annual inventory servicing fee and, additionally, will
charge the Client Company an up-front origination fee; and
o Supply@ME Technologies S.r.l., the owner of the IM
intellectual property rights and Platform provider, has in place a
license agreement with StockCo and will charge an annual Platform
fee. The Platform will be used by the Client Company to upload
inventory to be monetised, integrate and transfer the
Enterprise-Resource-Planning data to allow the necessary monitoring
and inspection activities by StockCo, supported by Supply@ME
Italy.
-- StockCo, in turn, shall issue a bond subscribed for by the
Investor. The security package of the bond comprises of, inter
alia, a non-possessory pledge on the inventory owned by StockCo.
This leverages the recently approved Italian legislation pegno non
possessorio (the "PNP Regulation").
The total expected average annual fees to be invoiced by the
Company's wholly-owned subsidiaries, as detailed above, over the
duration of the IM Transaction, equates to approximately 2.7% of
the gross value of the Client Company's inventory to be monetised
by the StockCo. This is towards the upper range the Company
expected could be achievable for the "Captive" Platform servicing
fees as set out in the revenue model previously disclosed by the
Company.
Alessandro Zamboni, CEO of SYME, said: "We are thrilled to be
able to announce the execution of the first IM transaction powered
by traditional funding sources, which is also the second IM to date
facilitated using our Platform."
"Each IM transaction validates Supply@ME's proprietary model and
clearly evidences the value which we can assist corporates, funders
and client companies to unlock. Moreover, this IM transaction
confirms that we are continuing to achieve the upper range of our
expected returns."
"The structure of the contractual agreement we have facilitated
will provide a blueprint for future IM transactions using
traditional funding sources in Italy, backed by the PNP Regulation,
opening the door wide open to others in our pipeline and boosting
the finalisation of white-label agreements with banks."
For the purposes of UK MAR, the person responsible for arranging
release of this announcement on behalf of SYME is Alessandro
Zamboni, CEO.
Contact information:
Alessandro Zamboni, CEO, Supply@ME Capital plc,
investors@supplymecapital.com
MHP Group, SupplyME@mhpgroup.com
Notes:
SYME and its operating subsidiaries provide its Platform for use
by manufacturing and trading companies to access inventory trade
solutions enabling their businesses to generate cashflow, via a
non-credit approach and without incurring debt. This is achieved by
their existing eligible inventory being added to the Platform and
then monetised via purchase by third party Inventory Funders. The
inventory to be monetised can include warehoused goods waiting to
be sold to end-customers or goods that are part of a typical
import/export transaction. SYME announced in August 2021 the launch
of a global Inventory Monetisation programme which will be focused
on both inventory in transit monetisation and warehoused goods
monetisation. This programme will be focused on creditworthy
companies and not those in distress or otherwise seeking to
monetise illiquid inventories.
[1] Investors should note that SYME is not able to disclose the
names of client companies unless such entities have given express
permission to do so.
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END
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