HOW MANY RNS ,DECEMBER3 Dec 2020 21:08
30 November 2020
Supply@ME Capital plc
(The "Company" or "SYME")
Trading Update
Supply@ME Capital plc, the innovative fintech platform which provides the Inventory Monetisation© service to manufacturing and trading companies, is pleased to provide the following update on its Inventory funding activities and Client company originations and new business geographies..
The SYME platform aligns Client companies (manufacturing and trading companies) seeking to monetise part of their inventory for cash, with Inventory funders (banks, financial institutions and investment funds). The Inventory funders invest through the SYME platform into portfolios of inventory assets through Securitisation Vehicles.
1. Inventory Funding Programme
SYME has progressed with all three of its funding channels.
i) Open Funding
The first Open Funding transaction is the inventory-backed securitisation note programme, managed by StormHarbour Securities LLP.
This securitisation issuance is now in its final phase. During November, many of the key issuance processes were either completed or have progressed to their final stages, including:
· engagement of a specialist inventory analyst to run a final examination of the inventory before monetisation takes place,
· extensive work by the legal team Gatti Pavesi Bianchi[1] to finalise the transaction package,
· agreements with the Inventory funder have successfully completed relating to the inventory reporting processes and the business continuity plan relating to the Platform,
· design of a new fast-track procedure to accelerate the due diligence process of Client Companies, which may increase the number of corporates monetised in the first transaction,
· the final terms of the note subscription, which are expected to be agreed in the coming days and will be announced separately.
The objective of this crucial period of work by all Parties is to deliver the first transaction and create an entirely new Inventory Monetisation asset class that reflects best practice principles established in the securitisation market. It will therefore be a repeatable and scalable investment product for subsequent rounds of securitisation.
Upon completion, expected before the Year-end, the Company will disclose the detail of the securitisation transaction and Inventory funding partner.
ii) Captive-Funding
As announced on 21 September 2020, the Company entered into a strategic agreement with a leading European Alternative Investment Firm ("Financial Partner") and SYME's shareholders, 1AF2 S.r.l. and The AvantGarde Group S.p.A. ("Co-investors") to acquire a bank in Europe. The Bank will remain independent of SYME, owned by the Financial Partner (who has committed to recapitalise it) and the Co-investors. SYME will not be a shareholder and has no costs relating to the transaction, it will, however, be the main beneficiary of the acquisition which will provide funding through the Platform,
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