RCS - Supply @ME Capital - New Italian PNP regulation comes into effect

Supply@Me CapitalAnnouncement

15/06/2023 08:00

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RNS Number : 8301C  Supply @ME Capital PLC   15 June 2023

15 June 2023

Supply@ME Capital plc

(the "Company" or "SYME", and together with its subsidiaries, the "Group")

New Italian PNP regulation comes into effect

SYME, the fintech business which provides an innovative fintech platform (the
"Platform") for use by manufacturing and trading companies to access Inventory
Monetisation© ("IM") solutions enabling their businesses to generate
cashflow, is pleased to confirm the new Italian legislation pegno non
possessorio (the "PNP Regulation") has come into full effect.

The PNP Regulation introduces the concept of "security interest" (a concept
widely adopted across mainland US, Europe and the UK) into Italian law, and
allows entrepreneurs easier access to financing of their inventory, without
having to sell, transform or otherwise dispose of their business assets.

Unlike the traditional pledge, the 'non-possessory pledge' will enable
businesses to create a security on movable assets without the need to grant
possession to the creditor - thus recognising the possibility of continuing to
use the pledged assets (such as raw materials, machinery, etc.) in the
production process, akin to a floating charge under English law.

The Italian Revenue Agency (Agenzia delle Entrate) will operate a digital
ledger for the registration and keeping of pledges. As a result, all the
operations relating to such pledges can be carried out swiftly and
electronically (including, but not limited to, registration, consultation by
anyone, modification, renewal and cancellation).

As stated in the Year-end Business Update of 20 January 2023, the PNP
regulation is expected to provide greater opportunities for Italian banks to
adopt the Supply@ME Platform for use under white-label agreements and further
enhance the security available to the Inventory Funders in traditional IM
transactions.

Furthermore, it is expected that the PNP Regulation will create additional
opportunities for traditional Inventory Funders to invest in IM transactions
in light of the proposed improvements to the legal enforceability of
guarantees over the inventory, through the arrangement of self-funding
agreements, which leverage the Platform.

Alessandro Zamboni, CEO of SYME, said:

"The Pegno Non Possessorio legislation provides greater security for funders
seeking to monetise or finance inventories in Italy. Its long-awaited
implementation allows for much needed working capital solutions for
businesses. It also strengthens our proposition as inventory scientists,
particularly for traditional funders."

"Supply@ME has anticipated the legislation coming into effect for some time
and we are the first player in the market to leverage it for an inventory
monetisation transaction. In parallel, we continue to work closely with
financial institutions to set up high-scalable white label and self-funding
partnerships."

Contact information

Alessandro Zamboni, CEO, Supply@ME Capital
plc, investors@supplymecapital.com (about:blank)

MHP Group, SupplyME@mhpgroup.com (about:blank)

 

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
warehouse 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.

 

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