RE: Proactive interview31 Aug 2021 18:36
NS or it could be
The Company has entered into an agreement ("Term Sheet") with the Italian Banking Group and the Fintech Bank which envisages:
1. the signing of a commercial agreement to manage both the origination of new Client companies and a multi-annual inventory funding plan; and
2. the execution of a first inventory monetisation transaction involving a portfolio of Italian Client Companies.
Simultaneously to the successful completion of the arrangements above, Supply@ME will acquire up to 10% of the Fintech Bank, a level which is below the threshold requiring regulatory approval. An additional 10% of the Fintech Bank may be acquired at the option of the Company within the following two years which would require an authorisation process through the Central Bank. In April 2021, the Fintech Bank was valued, by a Big4[1] firm, at between €34m - €50.6m.
The Term Sheet incorporates a binding commitment between parties with reference to:
· the time-scale, which envisages the completion of the arrangements above in July, unless the parties agree to extend due to internal authorisation processes or technical reasons. The Term Sheet has a contractual longstop deadline of 30 September 2021;
· the arranging and financing of an initial inventory monetisation transaction of eligible Client companies to be agreed. It is expected that the Italian Banking Group will involve the Fintech Bank and third party investors to create a scalable funding structure for follow-on transactions;
· exclusivity of the strategic deal between the parties for transactions of this type.
SYME will update the market on the completion of the above arrangements at which point it intends to announce the name of the Italian Banking Group and Fintech Bank. These currently remain confidential due to the strategic nature of the transaction.
Alessandro Zamboni, SYME CEO, commented:
"I am delighted to announce this agreement as a cornerstone of our inventory funding strategy. We can now begin to structure the monetisation of the first group of Italian client companies. This is a key initiative for Supply@ME and we expect that it will serve as the basis for an ongoing and scalable inventory funding programme for Client companies, starting in Italy. We believe that this will also provide further confidence to investors who have been awaiting the news of our first monetisation.
Sign In
Follow the stocks
