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Parkez,

Me again.

To put in perspective how much of a premium is contained when valuing the Consideration Shares at £ 220m+, see this from p 37 of the Prospectus :

.."Supply@ME shareholders have invested approximately €1.5 million to date into the development of
the company, focused on the development and verification of the new legal framework for inventory
monetisation and the technology platform to implement it..."

ATB

Parkez

You're welcome !

See also p8. 'Intangible fixed assets' Note 3 and p9. Goodwill arising.

The Prospectus for the IPO has been partly overtaken by events (the new Board decided on a different accounting treatment for the RTO). This is discussed in the Trading Statement to 31 March 2020
https://uk.advfn.com/stock-market/london/supply-me-capital-SYME/share-news/Supply-ME-Capital-PLC-Interim-Statement-12-month/82761501
The historic accounts were reworked to reflect the different basis of presentation, the Director's responsibility statement concludes :
"However in accordance with the FCA's Disclosure and Transparency Rule 4.2.9(2), the Directors confirm that these interim condensed consolidated financial statements have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information..."

ATB

Hi parkez,

The Consideration shares have been ascribed a purely notional value. If you look at the Prospectus https://www.supplymecapital.com/wp-content/uploads/2020/03/2020_03_04_Prospectus-posted.pdf
you'll see :

- p12 There are no proceeds relating to the Acquisition as no Consideration Shares will be issued for cash in connection with the Acquisition;
- p14 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 [Ed.: the costs were £ 800K, to put things in context]

So SYME has ascribed a 'hope' value of £220M+ to its (so far unproven) intellectual property - and ' being intangible, the Co starts life with humongous 'goodwill'.

ATB

Hi Jiving,
If we think Ivan is the sticking point, you can make a case that (a) he'd like the credit for signing a deal without any responsibility for implementation; (b) he doesn't want his successor to get the credit for doing something he failed to; (c) GLEN could use some extra cash / positive news to offset the fines /bad PR that are probably coming down the pike; (d) something else no-one has thought of (Ivan and Mick Davis's nicknames are 'the dealer' and 'the digger'; see how Ivan stitched Mick at the GLEN/XSTRATA 'merger that wasn't); (e) any combination of the above.

;->
ATB

Hi Jiving,

Again, I think we're on the same page, with some nuanced differences in interpretation ;->

GLEN appears to be tidying up the problematic , cash-absorbing bits of its mining portfolio, for a variety of reasons. We can speculate what these might be - strategic, political, Ivan's tidy-up, cutting duds/riding winners - to my (admittedly biased) way of thinking , all these reasons point to GLEN maybe finally deciding to do something with / about Zanaga.

Time will tell.

ATB

Hi all,

I'm not sure what people are expecting on/around 30 September.

The 30 June 2020 RNS Interim Statement for 12 months to 31 March 2020 tells us that :

.."SYME recently changed its accounting reference date to 30 September as announced in the RNS dated 23 June 2020. This change is in line with the Board's intended strategy to align the accounting reference date to the operations of the Group, which in turn is aligned with the working capital cycles of our customer base, being manufacturing companies that tend to build up stocks during the year. The Group will publish audited accounts for the 18-month period from 1 April 2019 to 30 September 2020. Thereafter, interim and annual reports will be published each year for the 6 months to 31 March and 12 months to 30 September respectively..."

So 30 September is ONLY the reporting date for an eventful 18 month period , there may be a broad-brush 'trading statement' some time after - depending on how much activity - but audited numbers could take a while, up to 3 months, I believe.

An audit is important because it gives added credibility to SYME and will have to take account of the RTO as described in the Prospectus and the subsequent change in basis of presentation because the current directors considered it more appropriate that " the reverse acquisition [not be] accounted for as a business combination, but as a share based payment."

The 31 March 2020 figures (revised basis of presentation) haven't been audited either, having been prepared by SYME's accountant, Wilkins Kennedy in Portsmouth, so Grant Thornton, the Company auditor, will be starting from a clean sheet.

A FAIAA, SYME doesn't have a Financial Director, who might have guided the Board on some of these issues.

HTH

Hi CF73,

Thanks for this !

If NCCL only looks to place its 40% (some ? all ?) with CMEC, we've got 'monopsony' - a sole buyer (ie the opposite of monopoly - one seller).
Perhaps it should also be approaching companies who might be interested in getting a foot in the door early for the later (relatively de-risked) phases of Tete...and help keep CMEC 'honest' .
Just thinking 'outside the box' - no idea if it would work in practice !
But we live in changing times...

ATB

Hi Jiving,

I quite agree with your PoV, esp. .." dilution because we missed the iron ore price rebound & in order to spend another 9-10 years producing studies - not fine..."

In fact, I'd go further and say that - absent signs of genuine progress over the next 12 months - I'm likely to move on, not least for the commodity cyclicality issues you've raised., along with the macro outlook.

We're due 2 x RNS's this month, let's see what transpires !

ATB

Hi Jiving,

.."That when dilution would finally destroy any upside for shareholders..."
Totally agree. But that includes the CEO's 26-27%, plus all his mates (maybe another 15-20%) and now the 'gang of 3'.
Since they're mostly not taking salaries and don't give themselves lots of free/cheap options (OK , a little just recently) a rise in shareprice is the only wealth-creator.....

Dilution is (almost) the least of my worries...and if it were for the right reasons would actually be welcome.

That's my take, anyway

ATB

Hi Jiving,

Totally agree the general thrust of your comments, save for .."with massive dilution,..", since there's been mercifully little.

To date.

ATB

See my 13:01 of yesterday...

Hi apunter2,

Thanks for continuing to engage !

You write : .."on the buy side your buy will show up in your account immediately on purchase. But you don’t have VOTING RIGHTS [my caps] or technically the shares until the transaction is completed..."

which you argue it isn't

And yet it's precisely voting rights that the Orchestra Group notification mentions. So , not only not helpful, but not required yet, if I understand you correctly.

To misquote "He's not the Messiah...he's a very naughty boy !"

ATB

Hi apunter2,

Thanks for this ... I think ;-> ! But , more questions than answers , having raised the possibility (which I hadn't considered) that this might be part of a larger order.

Your earlier post said "The company have up to 4 days to announce this. However, they can announce it anytime in that four days..."

If I was the MM struggling to fulfil an order of this type because of the 'agreed price' moving away from me, I'd be pretty ticked off that my customer was releasing a positive RNS earlier than he had to.
Wouldn't you ? And surely it wouldn't be in AZ's interest to do this, anyway, because I as MM could reasonably say "You're not helping yourself, pal, the deal's off."
Not an area I'm familiar with, I must confess, but I've had Material Adverse Change invoked on me on occasions in the past.

TIA and ATB

Hi apunter2,

Still haven't found a reference to the 1 year holding requirement, I'm afraid.

Meanwhile, a quibble re today's RNSs : again, I think this is an off-market transfer of Consideration Shares, the clue being that the price reported 0.6945p was the price of the 32.3 billion Consideration Shares issued at the time of the RTO...and as far as I can see was outside the trading range of the deal date 27th August.

Do you agree ?

ATB

Good stuff !

Only quibble : at least 5 typos, from both parties......and it’s not as though they haven’t had time to proofread.

Never mind ! Onwards and upwards !

ATB

Hi mornington-oz

Thanks for this. In the article AZ says : .."“Our business goal was to create a new service for working capital needs of [medium-sized] companies focused on manufacturing.."

We don't have much of a manufacturing base in the UK, whereas Germany has its famous 'Mittelstand' of mostly family-owned SME's , as does the starting point , Italy. And AbuDhabi followed , it makes sense because of the similarities to Islamic banking.

I wonder whether they'll tackle the German market next (I'd have thought much bigger and maybe better credit risk than the UK), or whether there's any technical or cultural obstacle ?

ATB

ATB

Hi try2buylow,

.."Perhaps it would make more sense if cash settled derivatives rank for the same price as shares in the deal, so why would AB convert 6m this week?..."

Because CFD's don't have voting rights , whereas the underlying 'real' shares do?

ATB

Not sure, tbh. They've done pilot studies but I don't think there's anything running yet. Happy to be corrected by anyone who can quote 'chapter and verse' ie some details, not just speculative chatter.
If you scroll back through the posts, you may find some 'hard' info.

ATB

Hi Aeronaut,

The last 2 years' AGM's were on 3rd and 5th Sept. There's a 2 week gap (notice period), so this year's is now 'overdue' relatively speaking, likely mid Sept now. And they HAVE to release interims H1 20120 by 30th Sept.
In one or other, they should also give a post balance sheet date 'material developments' update, where people will be looking at (1) latest development in their framework agreement with COIDIC; and (2) how the Share Subscription arrangement has worked so far in addressing ZIOC's funding requirements. And maybe some other snippets.

The shareprice (in) action suggests nothing earth-shattering in either direction, but 'who knows' ? Something may come out of left field....

ATB

Hi jefff,

Its all - mostly - here : https://www.supplymecapital.com/

ATB