REG - Supply@ME Capital - Agreement signed to launch a IM programme

Supply@Me CapitalAnnouncement

29/04/2024 12:30

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RNS Number : 4356M  Supply@ME Capital PLC  29 April 2024

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.

 

29 April 2024

 

Supply@ME Capital plc

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

Agreement signed with an Italian neo banking group to launch an Inventory
Monetisation programme up to €135m

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, following the business update provided on 5 April 2024, is pleased
to announce that the Company has entered into an  agreement with Société
Financière Européenne S.A. ("SFE") and an Italian neo banking group aimed at
deploying an Inventory Monetisation programme up to €135m Euro (the "IM
Securitisation Programme").

The IM Securitisation Programme comprises the following commitments:

·    the Italian neo banking group, through its investment banking
division, acts as arranger and, following the necessary internal approvals,
funder of the senior notes and part of the junior notes issued by
securitisation special purpose entities formed directly by the latter bank;

·    SFE acts as co-investor of the IM Securitisation Programme
subscribing the rest of the junior notes;

·    SYME is the platform provider and inventory servicer of the Stock
Companies owned by SFE.

The IM Securitisation Programme will be deployed over multiple tranches of
approximately €35m each, the timing of which is dependent on the speed of
the inventory turns of the client companies. The funding is expected to be
used to fund IM transactions for Italian client companies included in the
Group's pipeline.

The expected returns of the IM Securitisation Programme are in line with the
Open Market IM, being IM transactions from the Group's pipeline and funded by
third-party investors. In this regard, the IM Securitisation Programme is
expected to generate revenues of approximately 1-3% of the gross value of the
inventories monetised (purchase price plus VAT).

The Company will further update the market in due course once the first
tranche of the IM Securitisation Programme is deployed and will share more
information regarding the IM Securitisation Programme.

 With reference to the SFE, it is worth noting that, as of today, Alessandro
Zamboni, the CEO of SYME Group, has, along with a number of other investors, a
personal non-controlling interest in SFE. For this reason, the IM
Securitisation Programme, and the associated agreements between the Group and
the dedicated stock company (which is owned by SFE) that will be signed as
part of the definitive commercial agreements between the relevant parties
("Platform Agreements"), constitute a material related party transaction for
the purposes of DTR 7.3 and were, accordingly, voted upon by the independent
Directors (excluding Alessandro Zamboni, who, in this case, constituted a
"related party" (as such term is defined in IFRS)), and such independent
Directors consider this material related party transaction in respect of the
IM Securitisation Programme, and the associated Platform Agreements, to be
fair and reasonable from the perspective of the Company and its Shareholders
who are not a related party.

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
(mailto:investors@supplymecapital.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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