None15 Jul 2021 22:00
Supply@Me Capital - Innovative inventory funding
Supply@ME Capital PLC (LON:SYME) offers an innovative technology platform to provide inventory monetisation, which can enable a wide range of manufacturing and trading businesses to improve their working capital position (via a “true sale” of the inventory to special purpose vehicles) and also provides a new asset class to investors.
Supply@ME has a deep pipeline of inventory to be purchased from client companies — some €2.2bn equivalent of inventory to be monetised. During the remainder of 2021, Supply@ME intends to undertake monetisation strategies via the following routes:
Supply@ME has entered into a term sheet with an Italian Banking Group to acquire 10% of the capital of a fintech licensed bank, with the option to acquire an additional 10% within the following two years. This direct investment will be aimed at having both a multi-annual funding plan and a client company origination alliance and will allow Supply@ME to start immediately arranging of the first inventory monetisation transactions in Italy. Details of this deal are were announced on 29 June 2021.
The company has also agreed an exclusivity agreement with a global investment fund that will become the first external inventory funder for the Supply@ME inventory securitisation programme with reference to UK and UK common law client companies;
Further tranches of inventory securitisation notes will be offered to the open market, including via a Shariah platform; and
By virtue of the agreement with the Italian Banking Group, the company will accelerate the completion of self-funding agreements with other banks, which may co-operate closely with the fintech licensed bank
In addition to its pipeline of inventory monetisations, Supply@ME has a second revenue source coming on stream through its acquisition of TradeFlow Capital Management, which specialises in commodity trade finance, using a non-credit approach for inventory in-transit transactions, akin to Supply@ME’s current platform offering for warehoused goods. This acquisition will provide the enlarged Supply@ME group exposure to an expanded international customer base, and a range of deal synergies, including with reference to funding options. The deal completed on 6 July 6 2021.
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