Member Info for hefonthefjords

Tradeflow Capital acquisition is underway. Transaction entails £4m cash provided by new third party investors and 813m shares (£3.3m equivalent) taken from existing pool without dilution upfront, with subsequent performance based cash or share considerations based on performance the forward valuation targets of TFC @ £31m total consideration through 2025. Completion of acquisition process expected by month end.

2020 Audited Accounts expected around the same time as acquisition completion.

That's about the state of play at the moment.

What makes you think any of us have any better information than you do?
We are waiting for the same things you are.
You either have the time and patience to wait with us or you don't. It's not complicated.

If you don't trust your investment then sell it.

Doesn't make a jot of difference what we think.

The reason for the rise is that HMG have vocally committed to growing the UK based diagnostics industry and to sourcing an increasing number of sovereign tests manufactured locally.
If, as it appears, Innova have somehow attempted deception to have their tests approved by a regulator it will give HMG a reason to distance themselves from impropriety and forge ahead with that commitment to sovereign diagnostics sources, i.e. ODX/AVCT/GAD/ABDX.

I have to keep reminding myself that this company is tainted with the stench of Trevor Brown.

The man is poison to a share price. Be careful.

Very pleased with my entry point at 109.88p just over a year ago. This has plenty of legs on it yet as FTTP and 5G continue to expland.

It's primarily important for new investors to be aware this is 100% still a startup.
They are about to complete an acquisition of an existing company which will serve to bolster their ongoing development and expand the scope of their market offering. Ultimately this is a waiting game while the company builds it's ecosystem of funders and client companies. The risk is that for whatever reason they become unable to fully commercialize their business model and as yet they have not completed any monetisation deals.
The anticipated annual revenue if the business model is fully commercialized, based on currently available data on existing potential clients could be up to/in the realm of £30m per year to begin with, presumably growing from there as more client companies are serviced.
However, it is also important for new investors to be aware that this revenue stream should have begun 6 months ago and did not because the inventory funder decided they wanted a more internationally diversified investment than SYME were delivering at the time.
As yet we have no new information on if/when/what/how that funder is proceeding to monetise inventory through SYME or not.

If the company are able to get their inventory monetisation process started, this business will grow rapidly as the demand from companies to liberate cashflow from their inventory is high and the value of that inventory is high globally but there are a number of ducks that are still not in their respective row to enable this to begin delivering sustained revenues just yet.

The acquisition of TradeFlow Capital has brought a measure of stability to the future of the company and the share price has reflected that so far.

This is a speculative buy for a long term hold in my opinion. Thanks to the TFC acquisition, this should either grow slowly through the growth of the TFC subsidiary, or rapidly through successful implementation of their originally planned business model.

£5m cash is not gonna save this when there is less than zero profit coming in.

How is the technology worth millions if they are not raking in millions from product sales already?

I'm out. Don't even care about the loss anymore. This is going nowhere.

Here's the serious answer to your serious question;

TF don't necessarily need SYME but this is an inconsequential point as TF aren't buying SYME.

SYME acquiring TF was logical for both parties.

TF wanted the ability to expand globally and SYME wanted to globally offer the market an "inventory in transit" product which TF already had up and running.

Mutually beneficial both short and long term.

TF is profitable. I had read about them before I even discovered SYME because TF was being lauded for being able to deliver consistent and predictable returns to investors and funders regardless of whatever global markets and commodity markets were doing during the pandemic crash. There is no scenario where SYME do not benefit from spending a little money now to add an already profitable arm to their business. The TF acquisition will pay for itself many many times over.

I came here for a long and meaningful pump. >_<

This post is oxymoronic. You are complaining about non-relevant chat which in itself is non-relevant chat.

Take it up with the admin if it's that big of a problem for you.

TF's £31m valuation does not account for SYME expanding their platform and business globally. If we assume their tech/platform is valued at £11m and 5 years trade at £20m, assuming SYME expand their trade across many territories it should now be expected to do significantly better than that.

It may be even smarter than it appears on first glance...
The earn-out deal effectively sees TF paying for it's own acquisition beyond the initial £7.3m cash & shares transaction as it meets it's projected targets for the valuation. Genius move.

I agree Poor. My point is only that this revenue stream from TF will surely aid our growth rather than hinder it. If time is what we need to get the IM business model over the line at the end of the day then revenue from TF is going to help facilitate that.

*£7.3m

£4m cash + 813m shares.

Correct me if I'm wrong here... Doesn't acquiring TradeFlow, an already running company that generates profits, make SYME an "actual company" by proxy? I mean, revenue and profits from TradeFlow's trade finance deals will now be on SYME's books at the end of the day, right?

My verdict: good RNS.

We successfully acquired TF, an already established and cash generative tie in to our business model. We can also deduce from the deal terms that the TF owners accept 813m SYME shares have a forward value of at least 2.8p per share.

Do the sums and you'll see. This is about to be a goldmine.

They aren't actually selling their company for only £10m.
They are selling it for £31m and only getting £10m now, with the rest to come later.

Do you also look gift horses in the mouth?