RE: Employees1 Aug 2021 15:34
The following is taken from 29th June RNS so if I'm reading it correctly 1st securitisation will take place at the same time as the 10% of captive bank deal is complete - which could be any time and as a contractual long stop deadline of 30th Sept - so to manage expectations and not get ones hopes up I would say the end of Sept the 1st securitisation should be complete - we are in August now so not too long to wait - the more exciting bit for me is when will the 2nd 3rd 4th securitisations take place and will we see the snowball effect or better still could we see an avalanche !!
"The Company has entered into an agreement ("Term Sheet") with the Italian Banking Group and the Fintech Bank which envisages:
1. the signing of a commercial agreement to manage both the origination of new Client companies and a multi-annual inventory funding plan; and
2. the execution of a first inventory monetisation transaction involving a portfolio of Italian Client Companies.
Simultaneously to the successful completion of the arrangements above, Supply@ME will acquire up to 10% of the Fintech Bank, a level which is below the threshold requiring regulatory approval. An additional 10% of the Fintech Bank may be acquired at the option of the Company within the following two years which would require an authorisation process through the Central Bank. In April 2021, the Fintech Bank was valued, by a Big4[1] firm, at between €34m - €50.6m.
The Term Sheet incorporates a binding commitment between parties with reference to:
· the time-scale, which envisages the completion of the arrangements above in July, unless the parties agree to extend due to internal authorisation processes or technical reasons. The Term Sheet has a contractual longstop deadline of 30 September 2021;"
Best wishes all LTH