REG - Supply @ME Capital - Execution of first UK IM using traditional funding

Supply@Me CapitalAnnouncement

03/07/2023 07:00

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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© 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© ("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 €5m.

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 £1.8m 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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