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Morning Ladies & Gents
Still view the boards from time to time but stayed away from here as can’t be dealing with the constant non invested bullshi*ers and wasting my time to honest. Still invested and still confident regards SYME although it has taken much longer than I ever imagined.
Good to see some of the old loyal heads are still here and I would love to see them also rewarded. They deserve it.
Let’s talk facts now!
We know we have:
-€135 mil Italian Neo Bank Deal - FACT
-Banca BPM (3rd largest Corporate Bank in Italy) Agreement to WL with final terms signed with unlimited potential for growth - FACT (the RNS to state first transactions complete is only around the corner)
-Full sign off and independent audited accounts confirming to everyone who ever doubted SYME that all is above board - FACT (do not underestimate how this can help SYME grow as they dust themselves off of all the mudslinging from haters as they pulled all the necessary financial levers that needed pulled in order to help a startup get on its feet through difficult times! Some feel it could have been done better in terms of supporting cash flow but we are here. The world has come through a difficult period in the last four years…SYME like other companies but particularly a startup has had to roll with the punches.
Some more detail on the Neo deal
- SYME signed an agreement with an Italian neo banking group to launch an Inventory Monetisation programme worth up to €135m.
- The Italian neo banking group will act as the arranger and funder of the senior and junior notes issued by securitisation special purpose entities.
- Société Financière Européenne (SFE) will act as a co-investor in the programme by subscribing to the junior notes.
- SYME will provide the platform and serve as the inventory servicer for the Stock Companies owned by SFE.
- The programme will be deployed in multiple tranches of approximately €35m each, depending on the speed of inventory turns of client companies.
- The funding will be used for IM transactions for Italian client companies in SYME's pipeline.
- The expected returns of the programme are in line with the Open Market IM, generating revenues of approximately 1-3% of the gross value of the inventories monetised.
This ONE deal is enough to help SYME move above breakeven…that’s before Big Mama Banca BPM starts her engines….
We also have the token route and Vechain linkup working away in the background….
All the above with the added impact of other Banks and Financial Institutions watching in as funders are making easy money with little risk and businesses are spreading the message regards debt free access to cash….all good for SYME revenues and growth as we take our max maybe 4% from every £/€ monetised.
Think we are at a very exciting turning point in this journey!
As always….GLA LTH!!
All sounds great, but in reality - until they produce the goods it’s not actually ‘fact’ as you suggest. I’ve read the likes of all this before and it’s come to nothing, so without being negative I’ll save my excitement for now thank you very much. Whilst I remain optimistically positive I’m keeping a level head as I’ve learned a few very valuable lessons whilst being invested in this company!!!
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.
We need this done asap.
On 29 September 2023, the Group stated, as part of the interim results announcement, that it is now focusing its efforts on the following core business lines:
· IM transactions from the pipeline originated by the Group and funded by third-party investors ("Open-Market IM"); and
· IM deals with local commercial banks and their client companies ("White-Label IM"). In this regard, SYME explained that this route is expected to allow the Group to scale its revenue in Italy, leveraging the balance sheet and the client base of the WL Inventory Funder in specific supply chains. In parallel, the Group continues to explore similar White-Label IM partnerships in the UK.
The WL Transaction
BBPM is Italy's third largest financial services group in terms of assets; of which over ?100bn is accounted for through loans and advances to their customers[1]. BBPM has a deeply rooted presence in the northern regions of Italy, including those with the highest industrial concentration in Europe.
The achievement of the commitment for the WL Transaction is a key milestone for SYME which involved the collaboration across a highly qualified working group consisting of the dedicated functions of BBPM, the WL Client Company, external legal specialists and an accounting team made up of two different Big Four accounting firms in Italy, of which one is the auditor of the WL Client Company.
Specifically, to deploy the first White-Label IM, BBPM, the WL Client Company, the Group and a dedicated Stock Company (which is owned by the CH Trading Hub[2]) have signed a binding term sheet ("Commitment") (subject to the finalisation of the relevant definitive commercial agreements between the relevant parties) which envisages the delivery of an IM transaction with the following key features:
- the WL Client Company is within the Agrifood supply chain, being a leading producer of the famous Italian cheeses;
- the dedicated Stock Company will fund the WL Transaction through a combination of the secured ?8.5million bank debt from BBPM and ?1.5million of equity investment from the CH Trading Hub;
- specific remarketers have been identified who will be directly engaged by the Stock Company to optionally sell the inventory (up to ?10million) in specific circumstances. In turn, the remarketers could potentially be a beneficiary of separate dedicated White-Label IM transactions in the future; and
- the WL Client Company has signed a commitment (up to ?10million) to become a remarketer of a potential client in SYME's pipeline which operates in the same supply chain.
Following the signing of the Commitment, the working group is now focussed on the delivery of the WL Transaction through the execution of the definitive contractual agreements between the relevant parties.
Should of heard about this by now.
White-label IM business line
The Company announced that SYME and the working group (as referred to in the RNS announcement made on 3 January 2024 and includes Banco BPM S.p.A. - "BBPM" - and the WL Client Company) have been working closely to draft, review and finalise the detailed commercial contracts which will implement the commitment received from BBPM. Alongside this, the working group has been progressing the onboarding of the identified remarketers, at the same time as evaluating the opportunity for one of the remarketers to undertake a separate dedicated IM transaction. SYME had expected the contracts to be completed by the end of March 2024.
As of today, SYME, the working group and the external legal teams are finalising the review of the commercial contracts and further meetings are planned in the month of April with the list of eligible remarketers identified by BBPM to finalise:
- the remarketing commitment with the leading producer of the famous Italian cheeses, that is also a client of BBPM, to underpin the execution of the IM transaction; and
- the signed term sheet with the same remarketer to enable an ad hoc additional IM transaction with the remarketer.
20 tick ups for a serial Ramper?
...there's nowt so strange as folk 🤷
Boiler rooms for ya.
With all respect, this coming from me (less experienced) the negativity these days is far greater from suffering LTH's than from the non-invested!
Here comes the herd.....Big Mama Banca BPM WL First Transactions complete to be announced any day now!!
The world of SME Finance is watching!!