RE: Rns out27 Jul 2020 08:09
27 July 2020
Supply@Me Capital plc
(The "Company" or "SYME")
Trading Update
Development of Dual-Funding Model
Supply@ME Capital plc, the innovative fintech platform which provides the Inventory Monetisation© service to European manufacturing and trading companies, is pleased to provide an update on its Inventory funding process and Client company originations.
The SYME platform works by aligning Client companies (manufacturing and trading companies) seeking to monetise part of their inventory for cash, with Inventory Funders (debt funds, banks and similar financial institutions), that invest through the platform into portfolios of inventory assets via Securitisation Special Purpose Vehicles.
Highlights
1 The Company is now progressing two funding routes to achieve Inventory Monetisation:
o Open-Funding: The Company's securitisation note programme, being managed and placed by StormHarbour Securities LLP, has seen an increase in its list of interested investors to 16;
o Self-Funding: potential partnerships are progressing with two leading Italian banking institutions that intend to use the SYME platform to service their existing customers, whilst also providing the inventory funding capital.
2 Client companies already originated and awaiting inventory funding stand at 97 (up from 66 at 31 December 2019). A further 272 new Client companies have been introduced by one of the two new Self-Funding Partners and are currently undergoing SYME's rigorous assessment and due diligence processes.
3 Discussions with a large UK financial institution relating to a UK inventory monetisation pilot programme are progressing. Target to start the pilot by the end of 2020.
Details:
1. Inventory Funding Process
Based on positive discussions with a number of large institutions interested in investing through SYME's platform into inventory portfolios, the Company has further developed and refined its multi-channel inventory funding offer. SYME's funding offer now comprises Open-Funding and Self-Funding models.
Open-Funding
a. Client companies are originated by the Company and its commercial partners;
b. Inventory funding is delivered by securitisation programmes subscribed, typically, by institutional investors. The first such product is the inventory-backed note programme referred to in the Company's Interim statement published on 30 June 2020, and currently being placed by StormHarbour Securities LLP.
Storm Harbour's placing is progressing, notwithstanding the impact of COVID-19. Potential Inventory Funders involved in the securitisation programme are now working closely with Supply@ME to assess the client companies that form the inventory portfolio as the next step towards funding. There are now 16 institutional investors (mostly global asset managers) interested in progressing/investing through the process.
SYME has also started a process with two major credit rating agencies wit