RE: What’s next ?5 Jan 2024 11:13
WL is yet to happen. The dud firework this week sets out the binding terms ONLY.
When it finally happens expect fireworks, plenty of them.
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.
With reference to the CH Trading Hub, which is owned by Société Financière Européenne S.A. ("SFE"), it is worth noting that, as of today, Alessandro Zamboni, the CEO of SYME Group, has, along with a number of other investors, a personal non-controlling interest in SFE, with this entity acting as equity capital partner provider for the CH Trading Hub. For this reason, the Commitment, and the associated agreements between the Group and the dedicated Stock Company that will be signed as part of the definitive commercial agreements between the relevant parties ("Platform Agreements"), constitute a material related party transaction for the purposes of DTR 7.3 and were, accordingly, voted upon by the independent Directors (excluding Alessandro Zamboni, who, in this case, constituted a "related party" (as such term is defined in IFRS)), and such independent Directors consider this material related party transaction in respect of the Commitment, and the associated Platform Agreements, to be fair and reasonable from the perspective of the Company and its Shareholders who are not a related party.
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