REG - Supply @ME Capital - Inaugural IM transaction executed

Supply@Me CapitalAnnouncement

12/09/2022 07:00

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RNS Number : 0714Z  Supply @ME Capital PLC   12 September 2022

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.

 

12 September 2022

 

 

Supply@ME Capital plc

(the "Company" or "SYME")

Inaugural Inventory Monetisation© transaction executed

 

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 execution of its first IM transaction.

This announcement follows recent Company updates, including the RNS of 28 June
2022, when SYME disclosed the strategic alliance (the "Agreement") entered
into with VeChain Foundation 1  ("VeChain"), which is aimed at launching the
Web3 2  stream with the intention of funding up to USD $10m of IM
transactions, leveraging the minting of dedicated Non-Fungible Tokens ("NFT")
to be directly subscribed for by VeChain.

The counterparty to SYME's inaugural IM transaction is a well-established
business with significant market presence in Europe (mainly in Italy), Africa
and the United States (the "Client Company").  The Client Company is involved
in the design and manufacture of industrial and specialised vehicles as well
as electronic systems, electrical wiring, and other components 3 .

The IM transaction has been structured as follows:

·    the Stock (trading) Company ("StockCo"), an overview of which was
given in the SYME Business Model Canvas in the Company's Annual Report and
Accounts for the year ended 31 December 2021, entered into the commercial
contractual package, with a duration of three years, with the Client Company
to execute the IM transaction. The total value of the initial warehoused goods
to be monetised is approximately €1.6m;

·    with reference to the fully owned SYME subsidiaries:

o  Supply@ME S.r.l. ("Supply@ME Italy"), acting as originator and servicer,
signed an operating agreement with 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., owner of the IM intellectual property
rights and acting as Platform provider, has signed a license agreement with
the StockCo and will charge an annual Platform fee. The Platform will be used
by the Client Company to upload inventory to be monetised (and, accordingly,
minting the NFTs), integrate and transfer the Enterprise-Resource-Planning
data to allow the necessary monitoring and inspection activities by the
StockCo, supported by Supply@ME Italy;

·    StockCo, in turn, mints NFTs to be subscribed by VeChain under the
Agreement. Each NFT represents a basket of rights over the inventory,
including the opportunity to achieve monthly returns generated by the
inventory trading activities performed by the StockCo and the right of the NFT
holder, as ultimate owner of the goods, to take possession of the physical
goods if certain conditions are met.

The total expected average annual fees to be invoiced by the Company's fully
owned subsidiaries, as detailed above, over the duration of this specific
transaction, equates to approximately 3% of the gross value of the inventory
to be monetised by the StockCo.  This is the upper 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.

In parallel, the Company is working on multiple further inventory funding
streams in order to arrange and deploy new IM transactions, leveraging the
traditional funding routes. Further updates will be made in due course
regarding SYME's white label proposition.

 

Alessandro Zamboni, CEO of SYME, said: "We are delighted to have completed our
inaugural IM transaction, supporting our Client Company in this new phase of
just-in-case inventory management strategies. The technical innovation at the
heart of our service is truly unique within the market. "

"We are well aware that, given the complexity of our model, it has taken more
time than expected for the first IM transaction to be executed, but this will
now help traditional Inventory Funders to understand, in detail, the features
of the model and fully recognise its feasibility and viability. Thanks to the
successful completion of this first IM transaction, we further expect the
opportunity to co-design new self-funding and white-label solutions, together
with the financial services industry. "

"The involvement of VeChain, an organisation that is renowned in the
sustainability and supply chain sector, will  boost the confidence of
traditional Inventory Funders in using blockchain solutions on real business
cases. It will also build the foundations for Decentralised Finance protocols
combined with our IM service to support the real economy and the global supply
chains. "

 

For the purposes of UK MAR, the person responsible for arranging release of
this announcement on behalf of SYME is Alessandro Zamboni, CEO.

 

 

Enquiries

Investors & Analysts:

Alessandro Zamboni, CEO, Supply@ME Capital plc, investors@supplymecapital.com

Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780; paul.vann@walbrookpr.com
(mailto:paul.vann@walbrookpr.com)

 

Media:

Nicole Louis, MHP,  Nicole.Louis@mhpc.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
warehouse goods waiting to be sold to end-customers or goods/commodities 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.

 

 

 1  https://www.vechain.org/.

 2  According to the Messari report "Crypto theses 2022", "crypto, or the
recently en vogue "Web3", is an unstoppable force in the long-term". "Web3 is
a good and all-encompassing term that captures cryptocurrencies (digital gold
& stablecoins), smart contract computing (Layer 1-2 platforms),
decentralized hardware infrastructure (video, storage, sensors, etc),
Non-Fungible Tokens (digital ID & property rights), DeFi (financial
services to swap and collateralize web3 assets), the Metaverse (the digital
commons built in game-like environments), and community governance (DAOs, or
decentralized autonomous organizations)".

 3  SYME will not be disclosing the names of client companies unless these
entities have given express permission to do so.

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