Member Info for extrader

.."Now from what I’ve seen of trade flow they deal with SME. So will they need to be compliant with IFRS?.."

If by IFRS, you mean achieving 'true sale', this is a non-issue forTF because AIUI its business model is different to SYME's : it actually buys the goods as shown on the bills of lading, so has both title and physical control of its security.

Was this the bit you were thinking of ?

https://www.prnewswire.com/news-releases/conserv-bioscience-and-etherna-immunotherapies-to-collaborate-on-development-of-mrna-vaccines-for-infectious-diseases-301239973.html

.."Quadrivio Group are funding the captive bank and have already committed to the deal to the tune of €8bn of funding to 2024, as outlined in RNS 21st Sept 2020 . There's the cash. Let's get it bloody moving..."

These statements have been made by SYME.

Quadrivio has NEVER - AFAICS , happy to be proved wrong - acknowledged any relationship with SYME.

The only comment that Quadrivio has made - about their fund "Industry 4.0" - is that it hope to achieve a close on a fundraise of Euro 300 million by H2 2021.

See SYME Quadrivio Industry4.0 Fund

Q4 Fundraising Pipeline: Italy | Unquote
Launch : Jan 2018
Strategy : Mid-market buyouts
Target : Euro 300m

Industry 4.0 was launched with a €300m target in January 2018 and held a €100m first close in October 2018. Its final close is expected in the second half of 2021, the GP told Unquote. The fund invests in SMEs operating in the manufacturing industry, with high potential to grow further via digitalisation and automation, and able to generate annual revenues of €50-150m.

The source : hxxps://www.unquote.com/southern-europe/research/3021649/q4-fundraising-pipeline-italy "

HTH

.." the whitewash papers and customer introductions..."

I flagged this 'unadvertised' commission-sharing when people first started doing revenue projections, but missed out on the refinement you suggest of a possible 'double-dip' .

It's all pretty academic atm, both income AND funding IMO :

- introductions haven't AFAICS turned into business yet; and

- on the funding side, who would be interested in a 'netback 4-6%' (based on charging customer 6-8%) to have your money tied up for 3 years with no redemption, when TF is offering you 5% for max 3 month money [ with better security] and 30-90 day redemption terms ?
For SYME to attract funders, they'd have to offer more.....which would then make the proposition less attractive to its customer base.

'It's a mystery'

.."I think they are just trying to get some kind of corporate alliance..."

Ah, OK. Thanks !
I'm a tech dinosaur and the manipulation of statements/trading positions , bloomberg screenshots and similar that I've learned about here has left me overly suspicious !

ATB and Happy Easter !

.."Extrader - but HOW are they funding it? Re Tradeflow acquisition? "

Good Q, esp as it's really looking as though SYME needs a good result with TF as a 'hail Mary' pass.

(1) TF appears to have its act together, with concept 'proven'; a funding base; real income; and a positive, supportive (?) press.

(2) It's private, so we've no handle on financial performance as a basis for working out what it's worth; as a 'principal' , it can charge whatever the market will bear (within reason) ....and the termsheet shows a 'hedgefund-like' 15% clawback on any capital appreciation .
You don't normally expect to see 'capital appreciation' on a max 90 day revolver 'funding line': you're already offering (and apparently DELIVERING) the punters a target 5% on their money.....

(3) How would SYME pay for TF ? Shares and/or cash....neither good for SYME shareholders : dilution or placing.
(4) From TF's point of view : what's in it for them ? Beats me - see (1) above.

(5) Maybe it's another RTO, TF taking over SYME ? What's in it for them ? Beats me - see (1) above.
Can't see how THAT would be a good outcome for current shareholders.

(6) Maybe in AZ-speak 'acquisition' - like 'origination'- doesn't mean what we think it does ?
We already have NO evidence / acknowledgment from Quadrivio's side re 'captive bank', we now have NO evidence/acknowledgment from TF about THIS latest deal. And TF is a prolific tweeter :
.."TF has tweeted abt 50 times (incl.some repeats) going back to 17th March (when SYME announced the acquisition) and a further 20 or so times going back to 12th March (when it announced its tie-up with dltledgers.)

(7) There are bits of TF that I don't understand : the Navitas Resources UK operation (loss-making) and this apparent web-clone :

This website https://www.southporttradefinance.com/en-gb brings up the TradeFlow Capital Management logo, with the S'pore address we know about and a Fairfield, Connecticut address.

This very similar website https://www.southporttradefinance.com/ ie missing the /en-gb, brings up a different company, with the same imagery and text, a different Fairfield Connecticut address and a US Virgin Islands address.

So maybe some issues with TF , too ?

IMO

A trading update is supposed to be about names and numbers.

SYME has given numbers, but the dance of the 7 veils continues.

(1) At RTO 3/20, the Prospectus refers to 'originated' portfolio of Euro 972 million; no breakdown or categorisation, assumed 'oven-ready'.

(2) Per 30/6 RNS, the portfolio to 31 March is now described thus :

.."At the date of the RTO the Originated Portfolio stood at €972m and currently stands at €1.43bn.

At the date of this statement (30/6) there are €555m of client companies ready to be served / for execution. We expect a SIGNIFICANT PROPORTION [my bold] of these to be monetised once Inventory Funding has been secured."

so : Gross 1,430 and ready 555 (38%), of which a "significant proportion" (= 65-70% ?), say 360>390 , or maybe 25% are actually 'monetisable' .

(3) Per the 28 Jan RNS with the audited accounts to Dec 2019, the Chairman's forward looking statement shows 'gross originations' @ 31 Dec 2020 of Euro 2,130million.

Right at the end of the RNS, no doubt at auditor's request, there appears this clarification :

.."[1] "Gross origination" includes all client companies that have signed an NDA, a term sheet, or are in or have completed the onboarding process..."

(4)From today's RNS, 'gross origination' is now up to Euro 2.4 billion...but this has been FURTHER clarified as :

" [1] Gross origination" includes all client companies that have signed an NDA, a term sheet, or are in, or have completed, the onboarding process. For clarity, the gross origination also includes commercial opportunities postponed or lost/ not eligible."

Whatever issues there may be over funding, at least people could hang their hat on 'no shortage of customers'.

We were at a generous 25% of 'gross' before today's further 'reveal'

On the basis of this trajectory, I don't think even that assumption is safe.

IMO

The trading update was a disappointment (perhaps even a negative , with the 'expanded' definition of what counts as 'origination'); the CFO appointment appears OK (ALFA provides .."mission-critical software platform purpose-built for the asset finance industry ).

The one bright spot - maybe a 'hail Mary' pass - is if SYME can pull something out of the hat with Trade Finance.

Guess we'll find out before long.

GLA

Fair point !
I'm relatively new to KP2, I see in the early years there was a fair bit of dilution from placings, this appears to have slowed down from 2019.
At the point where you're getting close to go to market (to raise finance for DX), prospective lenders will want to see major shareholder commitment.

The statement itself says :
.." Accordingly, the Directors resolved to undertake certain mitigating actions including a capital raise in Q2 - Q3 2021. The Company has begun discussions with its major shareholders with regards to its near and mid-term funding requirements."

Reads to me as though matters are in hand : The BoD is fulfilling its statutory/fiduciary obligations and putting shareholders on notice that there may be a placing .
The major shareholders may - like us ! - be waiting for the drill results to decide how best to play things. On being approached re a placing, they may decide that a non-dilutive, interest -bearing shareholder loan (for example) suits their interests better.

And the share price reaction we've just seen may just be the second leg of a P and D, of course....

;-> / ;-<

Hi Phildon,

'Going concern' qualification was made for FYE 2019 too . It's pretty common on AIM ;->

.."The financial statements were authorised for issue by the Directors on 23 March 2020.
(b) Going Concern
During the year ended 31 December 2019, the Group incurred a loss of USD 4,202,752 and experienced net cash outflows from operating and investing activities of USD 11,257,646. Cash and cash equivalents totalled USD 7,578,727 at 31 December 2019.
The Directors have prepared a cash flow forecast for the period ending 30 June 2021, which indicates that the Group will not have sufficient liquidity to meet its working capital requirements to the end of the going concern period, primarily being corporate costs, and Definitive Feasibility Study ("DFS") costs related to the DX Project. The Directors have therefore considered mitigating actions, which include completion of a capital raising in H2 2020. "

So KP2 has been here before.
Can't see the major shareholders not being supportive , given the progress being apparently made on DX and the more favourable macro/country background....

IMO

IMO

That seemed to be the suggestion.
CF also spoke of doing something with ? Patrick McNee ? that might mean something to the Ulster Uni crowd....

.."Oil and Gas? Green energy? What's all that then?!.."

Cathal's past (Fastnet) ....and what he hinted he might look at post ORPH.
But conveyed he still had lots to do at ORPH....

'Armene' should read ' Arlene'...

Bullet points :

- Porton Down/Salisbury set up in 1947, Govt realised more military died of flu than from 'the opposition';
- played down news of CHIM, but second group of 7 started y'day;
- 1/100 interviewed was taken on, wired up 24/7, PCR test 'every hour (?), all infected, some didn't realise, because symptoms were so mild;
- UK now at 90% coverage of the vulnerable 70+ (10% of population);
- annual flu jab will include covid booster to cover variants;
- 400m now vaccinated, UK sorted by summer, Europe by Xmas;
- politics : called Chinese offering the 'casinovaccine' and suggested Republic should (1) 'be nice to HMG' and (2) 'should give Armene a call' re UK covering the South and creating a 'British Isles bubble' , incl 'staycations in the South...'

- personal : 57, family now in London, no A levels /left school at 16, MBA at Ulster Uni was 'transformative'. Acknowledged 'attention span of a gnat', business philosophy : 'hire good people, then empower them.
- the future ? 'a few more spin-offs and public co's at ORPH still to do, then maybe somtheing in green energy.

- other : HMG approached ORPH re CHIMs, 'we used to get excited at £ 3-4 m contracts, now we're looking at £ 20m ' PLS CAN SOMEONE CONFIRM THIS WAS WHAT Cathal SAID;

- small correction : the 50 are PhD 'or above'...

E & OE

HTH

In case not heard before , a link to a podcast where Dr Chris Chiu (the study’s Chief Investigator) speaks about the study: https://soundcloud.com/user-499485249/infecting-people-with-covid-19.

Hi Oaktreetrader,

You and others keep mentioning lithium here. Neither Alignresearch nor KP2 itself say anything about lithium AFAICS and Brad when asked at the recently linked interview (min 32) didn't say anything concrete, when asked.
SQM extracts lithium from its (different geology) Chilean salt lakes and SQM is a KP2 shareholder, but AFAICS it's here for the potash only.
Any other supportive links, pls ?

TIA

I waded through 'bossofthefroth's musings on various shares and the footie and found only HIS statement that GS was a major buyer.
A screenshot would be a lot more value.

HTH and ATB

What makes you say it's GS , pls ?

TIA

.."Supply@ Me is today 92.2% controlled by TheAvantGarde Group spa, which in turn belongs to Zamboni and other investors, while the remaining 7.8% is owned by a group of investors who in June 2019 had subscribed to a club deal investing 2 million euros in capital increase, based on a 100% equity value for Supply@ Me of 25 million euros. ."

The increase in implied value (based on a cash investment of Euro 2 million) between June 2019 and March 2020 from Euro 25 million to £ 225million is based on a spend of Euro 1.5 million in legal fees and a pipeline of 'originated business' ( which we now know may be a signed term sheet ) :

.."The important updated assessment of Supply@Me compared to that of mid-2019 is due to the fact that in the meantime “the company has originated contracts with client companies for the disposal of the warehouse for a total total of over 900 million euros and that it is three-year contracts, which offer investors of securitization notes a more competitive yield range than financial products existing on the market in the context of working capital”, Mr. Zamboni explained to BeBeez, adding that “in the meantime we are signing agreements with institutional investors” and that “we have invested more than 1.5 million euros in legal fees to have a bullet proof structure and be operational from this year “.

Pretty impressive stuff.

Don't mention Cameron and Greensill, mind...

;-<