Member Info for Theanalyzer

Hughez87

We know that SYME is revenue generating . We can see that from the accounts.

However, it operates at a negative gross margin because cost of sales exceed revenue because it remains sub scale.

Lack of funding remains SYME’s Achilles heel both for IMs and its own corporate funding.

In two weeks Eight Capital /IWEP €72 million debt due from TAG becomes repayable.

AZ / TAG working capital loan still not being paid to SYME. The facility now expires in under 12 months long as it ends June 2025, so that will need to be updated or replaced when interims to 30 June 2024 are published.

AZ / TAG still not paid RTOP $1.5 million due on 14 June and then due imminently.

Tick tock

TwoGoodToDie

No cash is missing.

There was no cash involved in the IWEP sale of SYME shares to TAG. IAF2 gave them a bond listed on Vienna Stock Exchange with a nominal value of €72 million. IWEP sold a piece of that debt to Eight Capital again in exchange for a loan. Eight then swapped that loan into Eight shares.

There has been no cash movement . Even interest on 1AF2 loan was paid in shares per Eight accounts.

The charge at Companies House for 1AF2 Limited is 120 pages long and filed by an international law firm.

However, you know better than the official file trail of documents.

I don’t know if simply can’t understand the transactions or just trying to dismiss the issue that exists.

Six months to supposedly agree documentation for White Label contract for mere €8.5 million loan from bank to an existing bank client.

Anyone else think there is a problem with supposed launch?

TGTD

The €73 million is connected to a purchase of a package of shares by AZ from DW and AZ issued a loan note secured over the shares plus TAG guarantee as consideration . Its all set out in Companies House filings by 1AF2 a 100% TAG subsidiary. AZ even talked about the deal at AGM and how it was done with listed debt to enhance transparency.

I note that PKF Eight’s auditors seem content that Eight has a legal loan and security in respect of Eight’s largest asset.

DW and Eight will make large realised losses on the loan in my view and it will also cause TAG and SYME issues as well.

TGTD

DW may have a strong legal position but I agree that doesn’t mean his financial position is strong because as you note SYME is essentially worth nothing based on its net liabilities. A lot depends on what private assets in €67 million security package can be sold for. Eight are essentially valuing these at Nil at year end.

Perhaps Eight will roll the loan over in exchange for some cash now and give AZ a chance to get SYME working and recovery money from share appreciation. If Eight runs out of cash then it’s administrator will take over.

In any case the Eight loan gives AZ something else to deal with.

We should know next steps soon.

If DW gets control of TAG he can then manage its assets directly including 22 billion SYM shares

2GTD

Given there is a legal charge filed at Companies House by 1AF2 in favour of IWEP and a security arrangement held by another DW company, I suspect DW has got legal position covered.

If TAG can’t repay Eight then SYMEs working capital provider is in trouble.

At which SYME needs an emergency bailout to prevent insolvency crystallisation.

Not that hard to understand.

TGTD

Of course Eight have no control over TAG as TAG is 100% owned by AZ but TAG is struggling to pay SYME and RTOP their working capital and TAG owes Eight and IWEP €73 million due on 22 July 2024.

Time will tell if AZ still has his shares in SYME or whether Eight takes control of them and sells them to pay bills.

Eight results out this am.

It has written its 1AF2 bond due from TAG subsidiary down by over £14 million, around a 50% haircut.

Hopes to recover cash in July from €67 million of privately held investments and cash that AZ claims to have. Odd that he hasn’t used them to pay SYME and RTOP the cash owed which would boost their value.

2GTD - the 1AF2 loan was and is the principal asset of Eight.

How are things going

Badly.

Massive loss on 1AF2 bond, goodwill on corporate finance subsidiaries written off.

Limited cash reserves.

Another DW dog of a share.

Extrader

I think the vendor loan was swapped into Eight equity shares. Its not in the Eight balance sheet anymore.

The whole SYME / RTOP saga is playing out badly but there have been a lot of red flags to guide the more savvy investor to steer clear.

A strong red flag for me was when Jim Coyle a very experienced CFO in the world of banking stepped down as Chairman after only a few months citing work pressures - a convenient excuse.

ATB

Mario

Eight’s largest asset is a loan from a TAG subsidiary called 1AF2 Limited worth £30 million due to be repaid on 30 June 2024.

1AF2 owns 8.3 billion shares in SYME plus has a €61 million guarantee from its parent TAG pledged as security for the Eight loan.

If 1AF2 can’t pay the loan to DW then DW can gain control over both 1AF2 and TAG by appointing an administrator and AZ doesn’t own any SYME or RTOP shares.

Eight Capital shares suspended this morning as the couldn’t get audited accounts on time.

A TAG subsidiary 1AF2 was due to pay Euro 73 million by 30 June 2024 to various parties including Eight. The loan is Eight largest asset.

AZ empire is under enormous financial pressure.

Chances of this coming back to the market any time soon just got lower.

Auditor lasted 2 months!

Peak

What makes you think RNS announcements are audited?

As SYME is standard listed there isn’t even a NOMAD that is supposed to verify contents of RNS announcements.

The removal of SYME’s ability to disapply pre emption rights isn’t the good news you think. It will make future fund raising harder. There is a reason why Board wanted the resolution passed.

The year end SYME audited results show that SYME is technically insolvent as liabilities exceed assets. Rolling forward year end numbers for six months shows you that remains the case. SYME are reliant on creditors not pulling the plug.

AZ makes promises that he doesn’t keep like RTOP getting $1.5 million. He missed his own deadline but said cash was now due imminently and two weeks later still no cash.

RTOP shares suspended because cash funding of $1.5 million due on 14 June 2024 and then stated as due imminently still not received.

The $1.5 million is same sum promised by AZ at SYME AGM.

I suspect only announced today to avoid further embarrassment at SYME AGM

As a serial loss making company with no cash and one that is reliant on Alessandro Zamboni promises of the cheques in the post for working capital which don’t turn up on time this company is dead.

It can’t do a bucket shop placing or a CLN whilst its shares are suspended.

Two Good

Classic deflection.

You said SYME was a regulated business and it’s not.

Keep up.

Two good

You claim that SYME is a financially regulated business. Isn’t a bit odd that it’s not on FCA register?

SYME won’t be selling any inventory or borrowing any money nor lending any money or buying any inventory. The stock companies are not subsidiaries. It provides the software for other parties to do that. It’s a platform business that hopes to make money by charging fees for users of the platform and thus isn’t required to be regulated.

Taking a stock loan out against a start up fin tech

In words of Layer Cake are you f..cking demented