REG - Supply @ME Capital - Commitment for first IM from traditional funding

Supply@Me CapitalAnnouncement

26/04/2023 07:00

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RNS Number : 4549X  Supply @ME Capital PLC   26 April 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.

26 April 2023

Supply@ME Capital plc

(the "Company", "Supply@ME" or "SYME")

Supply@ME secures a binding commitment for first Inventory Monetisation
transaction from 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© ("IM") solutions enabling their businesses to generate
cashflow, is pleased to announce that Supply@ME Stock Company 1 s.r.l.  (the
"StockCo") has secured a binding commitment (the "Commitment") provided by an
institutional investor (the "Investor") to invest in the first 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 €5m, as announced on 20 January
2023.

The Commitment provided by the Investor will be used by the StockCo to
monetise up to €1.2m of warehoused goods of 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").

The Transaction will leverage the recently approved Italian legislation pegno
non possessorio (the "PNP Regulation") and is expected to be first such IM
transaction implemented in the market under the PNP Regulation legislation in
respect of non-agri-food based inventory.

The Client Company has entered into a binding commitment with the StockCo to
finalise the necessary definitive commercial agreements in relation to the
Transaction by 28 April 2023. The StockCo is the same entity that is used for
managing, with positive returns, the inaugural IM announced on 12 September
2022.

Due to the seasonal nature of demand for the Client Company's inventory and
the fluctuating levels of inventory which it holds,  the value of the
inventory monetised is expected to increase, with the StockCo retaining a
right of first refusal on inventory monetisation of the next €10m of
eligible inventory.

SYME will provide further details regarding the Transaction following the
execution of the definitive commercial agreements between the StockCo and the
Client Company and the funding instruments subscribed by the Investor.

Alessandro Zamboni, CEO of SYME, said:

"I am very pleased to announce the execution of this binding commitment in
respect of the first IM using traditional financing - a strategic pillar of
Supply@ME's business model. As each funding route comes online, we are
breaking down remaining barriers to Supply@ME being recognised by potential
funders, globally, as the unique access point to a novel and untapped real
asset class, as opposed to old fashioned inventory financing deals which we
continue to observe in the market.

"We knew that the PNP Regulation had the potential to be a gamechanger,
unlocking the potential in the Italian market wherein we have longstanding IM
relationships with major banks and investors, and significant pipeline of
prospective IM transactions. The milestone achieved today will enable us to
further build our track record in Italy and strengthen our proposition there
and in other geographies."

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.

 

 

 

 

 

 

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