Member Info for extrader

Hi tomvisual,

You had some Q's, amongst which :

Researching....
Why did 1AF2 need the "loans"?
A : See explanation in proactive interview 30 June : AZ says that potential funders had [belatedly /unexpectedly] added a 'first loss security' requirement ie needed cash margin. SYME itself couldn't provide, ' because that would make it financial services co, not fintech ie 'capital-lite'), so used funds raised by 1AF2 as arm's length indirect provider of cash collateral.
Rather begs the question as to why, if 'oven-ready' , he only learnt of this at this stage. And/or SYME has no liquidity.

How much were the "loans"?
A: We don't know. Based on s/p at the time collateral worth £5m tops, @ 60% lender normal LTV = £ 3m

How does 1AF2 pay back the Lenders?
A : We don't know. They have 2 + years to find the cash. IF SYME is paying dividends by then, there should be an income stream from the pledged shares alone....IF..We don't know if there's a 'Plan B'. Maybe there isn't.

I assume this would be by selling their other shares (23.91% less 19.2%) to pay the "Loans".
A : See above

When the loans are paid back are they done so in a staged manner to avoid the Lenders dumping stock in one return (of stock to 1AF2 ("the borrower")) hit 2 years plus down the line?
A : We don't know

This unwinding of positions would be a major impact to the share price for PI's.
A : Very likely...and there are plenty of folk who believe that the 3 x lenders may have already been trading (as we were specifically told they are allowed to)

How does 1AF2 manage this as it affects all holders!!
A : On the face of it, it can't. AZ doesn't appear to have considered this possibility (in which case he's not the financial whizz he's cracked up to be) or he IS aware and... for some reason that he hasn't shared, it doesn't matter to him. Some might say that that is arguably a breach of his 'duty of care' to shareholders.

AZ is a Director of 1AF2. Can he advise if the repayment of the loans will have a detrimental effect to share price!
A : Any share overhang is usually a price depressant

Is 1AF2 required to pay back the loans to get the shares returned to them for the "Lenders"?
A : 'by' not 'for' the Lenders. The 29/7 RNS says :.."1AF2 confirms that it INTENDS to repay the loans. The Loans may be drawn in a series of tranches over one month and Lenders may trade pledged shares to diversify their portfolio concentration risks. Upon repayment, all 5,893,824,429 SYME shares will be returned to the borrower..."

For tax declaration purposes (eg residency/domicile) at least, 'intention' is a recognised 'wiggle room' word, HMRC accepts that circumstances may change.
It's a bit odd to see it in an RNS on a loan, though : try that with your friendly bank manager on your next mortgage application !

Final thought : the 'security collateral' was raised during August, 3 months later we've await news abt the related deal(s).

ATB

Hi Mr MarkyMark

..”
You could currently be rotting away in a Saudi jail, rather than enlightening/entertaining us with all your posts on here. “

Google Charles Ridley, Dubai Islamic Bank, a boating buddy, who spent a decade as fall guy in Dubai...

I’m VERY glad to be here...and , who knows ? some of the board readers may be too some day !

“ It’s not what you don’t know that gets you into trouble, it’s what you know ‘for a fact’ that just ain’t so”.

GL and ATB

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwi0l8_j8v3sAhXKNcAKHZ-GB4oQFjADegQIAxAC&url=https%3A%2F%2Fwww.dailymail.co.uk%2Fnews%2Farticle-1371658%2FFormer-banker-produced-Lesbian-Vampire-2-sued-fraud-Saudi-bank-9-2BILLION.html&usg=AOvVaw2ZL9pEJD2a7n3O9AulL0Z6

Hi DG73

..” Trust me, the last place anyone wants to commit fraud, is the Middle East..”

Google ‘ Golden Belt’ , Ma’an al-sanea ‘ and see whether you still believe that.
Then google Glenn Stewart.
I was offered jobs by both of them, several times.

Biggest silver bullet that I ever dodged.
ATB

PS. for the avoidance of doubt, the algorithm is unhappy with s****y, I wrote [s masturbate y]...

Hi Wolf of Warks,

.."In twelve months time maybe a testimonial or two would do wonders for the PR but we’re far too early for that it the moment..."

I take your point re client reticence, but in fact we've got a volunteer : https://winenews.it/en/wine-if-the-warehouse-turns-into-economic-liquidity-without-opening-credit-lines_417592/

Tasca d'Almerita seems a pretty s****y label and the sort of business that would have a lot of credibility/status with the well-heeled.
Why hasn't AZ made use of this seemingly 'warm' customer/example ?

ATB

Hi poorinvestor,

.."I think the buy option @0.69 is the 20th dec..."

The 24 Sept RNS actually says :

.."Supply@Me has been notified by shareholder, Orchestra Group, that it has acquired an option giving it the right to receive 630,000,000 ordinary shares of the Company if the share price is at or above 0.6945 pence per share on 31 December 2020. The option cost is GBP1.1million..."

ATB

Hi chrishutch,

Agree - looking good ! Something to counter the negativity re things coal..

As these seem to be specific, longlead items, I'd hope we'll learn how much $$ is involved in the loan...and how much security is given by the subsidiary co.
In any event, this suggests that CMEC is confident that the Project will be sanctioned.

ATB

Hi nikikiki,

IIRC you're Italian...or at least, an Italian speaker, no ?
Facile and Belli are founder shareholders of SYME, via TAG, Eight Capital is connected, there's a Maltese connection, cross-shareholdings, offshore trusts...I'd say there's a lot of relevance.
If you poked around, I'm sure you'd find a lot more than me.

ATB

Hi Parm,

'"You could email direct to Syme I am sure they could answer any concerns you have?"
I've emailed 3 times, asking for the identity of the £ 225m independent valuer; clarification re 1AF2/A1F2 ; and how interested companies / potential customers are supposed to contact them as there are only links to investor and media relations .
No reply.
ATB

Hi all,

SYME minority shareholders Belli and Facile in action in Palermo...

https://www.stadionews.it/palermo-spunta-anche-compagnia-maltese-vicina-belli-facile/

Some other familiar names crop up , as well.

ATB

Hi all,

For da95649

Good stuff re High West and Union Pacific !

Re your :.."We will receive an. RNS is my prediction and it that state they need to raise more money by transferring or selling the shares that they own ‘the majority ‘back to back with some hyperbole which will drive the 63% down to 50%.."

Have a look at Prospectus p.130 'Calls and puts'.

The calls were what allowed AZ to 'acquire' TAG from iWEP, FPG, MB and EF, I'm wondering whether the puts are to 'reverse' the process ?

The calls were exercised on 8th July 2020, when TAG owned 56.93 % of SYME , the puts are exerciseable any time during 6 months from 8th August 2020...

The TAG shareholding per this morning's Bloomberg is down to 11.12%.

Above my paygrade, I'm afraid.
Anybody who has AZ's ear might want to ask him wtf, though.

ATB

Hi Sam12345,

Re AZ's £1.1m call option :

(1) Remember that it was originally written with himself, RNS 24 August :
..."Supply@Me has been notified by shareholder, Orchestra Group, that it has acquired an option giving it the right to receive 630,000,000 ordinary shares of the Company if the share price is at or above 0.6945 pence per share on 31 December 2020. The option cost is £1.1million...",

PDMR/PCA FCA Transaction Notification
1. Details of the person discharging managerial responsibilities / person closely associated
a) Name Orchestra Group
2. Reason for the Notification
a) Position/status Alessandro Zamboni CEO Supply@ME Capital plc
Alessandro Zamboni, Owner of Orchestra Group

corrected next day to : "With reference to the announcement of 24th September, "Director PDMR / Shareholding", relating to the purchase of a call option for consideration by Orchestra Group, the Company has been informed by Mr Zamboni, for clarification purposes, that the instrument is an arms-length arrangement with a regulated institutional entity which is not a related party of Orchestra Group..." ; and

(2) £1.1 m is not a lot of money in the context of the sums potentially at stake here. There is, technically/ arguably, potential for abuse/misuse (cf Paul 'the Plumber' Davidson) and - as the CIA supposedly maintains - 'we listen to people's intentions....but we plan according to their capabilities.'

ATB

And here's the AIIB announcement https://www.climatechangenews.com/2020/09/11/asian-multilateral-bank-promises-end-coal-related-financing/..

If you drill down, it's not that bad : .."The AIIB’s energy sector strategy states that “carbon efficient oil and coal-fired power plants would be considered” for investments “if they replace existing less efficient capacity… or if no viable or affordable alternative exists in specific cases”..."

and they're willing to be 'flexible' in their approach to green-ness :
.."Pinson, of ReclaimFinance, said any AIIB coal policy would need to end all direct and indirect support to coal, including through financial intermediaries.
“Stopping direct financing to new coal projects but financing them through the backdoor would be blatant hypocrisy,” she said, adding that Chinese banks are among the biggest underwriters of companies planning new coal plants.
Besides coal, the AIIB invests more than twice as much in oil and gas as in renewable energy, according to Recourse, with gas seen as an essential part of the energy transition..."

A cynic might say that this change has an element of politics/virtue-signalling......

Moi ?

ATB

Hi all,

From latest newsletter of https://en.wikipedia.org/wiki/Eurasia_Group

.."i’m hearing about a big announcement coming at the summit of development banks in paris
this thursday, apparently there’s an agreement in the works to end all future funding/investment
in coal-related projects. the asian infrastructure investment bank (aiib) got ahead of the broader
announcement with their own just today. on the back of all the international support for net-zero
carbon emissions on climate—and with an expectation that europe pushes forward its carbon
neutrality goals next year to 2050—this will be a landmark move...."

Not helpful in the short term , unless we get re-confirmation of stakeholders' ongoing commitment.

ATB

Hi IraMil7,

.."TR1 should not have been expected as their position has not changed. It was clearly shown on the Bloomberg terminal - EF did NOT show any moves.
5.9%=4.71% plus their 5% of 1AF2 (23.91%).."
Huh ?
(1) Why would they show 5% of (1AF2 as 23.91%) still ? 1AF2 has pledged 18% or so to 3 x lenders and reduced SYME stake accordingly.
(2) If the 1AF2 %age they're showing is correct, wouldn't you expect the position of other 1AF2 stakeholders (= TAG) to show the same (ie pre-pledge) stake ?

ATB

Oops !

Missed first line of 'conflicts of interest'

.."On Admission, Eight Capital Partners will own 22,256,725 Ordinary Shares. Dominic White is the ultimate beneficial owner of IWEP Ltd., one of the shareholders of The AvantGarde Group, one of the Sellers of Supply@ME. At Completion, the Sellers will receive in aggregate 32,322,246,220 Consideration Shares. ..."etc

ATB

Hi Mr008,

.."The issue price of syme is 0.69p.."

That was the 1.01% in the Placing. 98.7% of the 32.2 billion 'Consideration Shares' were issued for nil/negligible cost.

From the Prospectus :
(1) There are NO PROCEEDS relating to the Acquisition as NO Consideration Shares will be issued for cash in connection with the Acquisition (p 12) ; and
(2) The Consideration Shares are being issued ON THE BASIS OF AN INDEPENDENT PROFESSIONAL VALUATION COMMISSIONED BY THE BOARD ON BEHALF OF THE COMPANY that ASCRIBES to such Consideration Shares an issue
price of £0.006945 per Consideration Share. The Placing Shares are being issued at the price of £0.006756
per Placing Share. The estimated net asset value post the Acquisition and the Placing will be approximately
0.69p per Ordinary Share. The premium to net asset value of the New Ordinary Shares places AN INTANGIBLE VALUE ON THE STRATEGY PROPOSED BY THE BOARD AND THE HUMAN CAPITAL CONTAINED IN THE BOARD, as well as
reflecting the COSTS INCURRED IN THE ACQUISITION, PLACING AND ADMISSION..."

These are the 'most material' conflicts of interest, p 12 :

.."Ltd., one of the shareholders of The AvantGarde Group, one of the Sellers of Supply@ME. At Completion, the Sellers will receive in aggregate 32,322,246,220 Consideration Shares.
Epsion has been engaged as the Company’s placing agent in connection with the Placing, to procure placees for the Placing Shares [Edit. : and the much larger Vendor Placing, no details, NOT mentioned in the Prospectus].
John Treacy, a director of the Company, is also a director of Epsion. Epsion is a wholly owned subsidiary of Eight Capital Partners Plc. Dominic White, a Proposed Director, is also a director of Eight Capital Partners Plc. ..."

ATB

Hi Mr008,

.."The 5.8 billion shares held by the lender must be returned to the borrower after 2 years..."

(1) There are actually 3 x lenders, who may have different objectives and (2) the loan term is 'minimum' 2 years, so an 'extend or pretend' approach might suit both sides (variant on mick2's comment, without the drama).

IMO
ATB

Hi all,

An elegant way forward for the Chinese would be to first secure as much high grade ore as possible and then introduce tiered import duties that could be tweaked as appropriate to favour some producing countries and disadvantage others... no names, no pack-drill.

"All diplomacy is a continuation of war by other means "
Zhou Enlai, Saturday Evening Post (27 March 1954)

ATB