Supply @ME Capital PLC Execution of first UK IM using traditional funding (6564E)
July 03 2023 - 2:00AM
UK Regulatory
TIDMSYME
RNS Number : 6564E
Supply @ME Capital PLC
03 July 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.
3 July 2023
Supply@ME Capital plc
(the "Company" or "SYME")
Execution of first UK 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 completion of commercial agreements for the first IM
using traditional funding sources.
This announcement follows recent Company updates, including the
RNS of 09 June 2023, when SYME disclosed that Supply@ME UK Stock
Company 4 Ltd. (the "UK StockCo") had secured a binding commitment
(the "Commitment") provided by an institutional investor (the
"Investor") to invest in the first UK IM using traditional funding
sources (the "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.
Per the execution of the definitive commercial agreements
between the UK StockCo and the Client Company and the funding
instruments subscribed by the Investor, the Commitment provided by
the Investor will be used by the UK StockCo to monetise up to
GBP1.8m of warehoused goods of a UK client company, which provides
parts and technology to the global marine industry (the "Client
Company").
The IM Transaction has been structured as follows:
-- UK StockCo entered into the commercial contractual package,
with a duration of three years, with the Client Company to execute
the IM Transaction.
-- with reference to SYME's wholly-owned subsidiaries:
o Supply@ME Ltd. ("Supply@ME UK"), acting as originator and
servicer, has in place an operating agreement with UK 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 UK 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 UK StockCo, supported by Supply@ME
UK.
-- UK StockCo, in turn, shall issue a bond subscribed for by the
Investor. The investor has floating charge over the inventory owned
by UK Stock Co.
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 3% of the
gross value of the Client Company's inventory to be monetised by
the UK StockCo. This is in line with the 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 very pleased to
be able to announce the execution of the first UK IM transaction
powered by traditional funding sources. This transaction is
testament to the market leading model of Supply@ME and provides
another example of the value we can help corporates, funders and
client companies to unlock."
"The structure of the agreement we have facilitated will provide
the blueprint for future transactions in the UK using traditional
funding sources, opening the door to others looking to secure
working capital."
"We aim at scaling the business also in UK, exploring the
opportunity, as in Italy, to clinch white-label and self-funding
alliances with commercial and investment 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.
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