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Should see SYME hit nearly 66 billion shares which all the bulls scoffed about when Venus Capital were first announced in April 2022.

It came true in under 6 months.

EllllTel

The big event for SYME will be repayment of Mercator loans and issue of a load more shares taking share count up to 66 billion.

ECP will I suspect get approval for a massive increase in share capital but it doesn’t impact SYME directly

Solmo
SYME has a big advantage over private company borrowers namely it is quoted and can raise money by placing and convertible loan notes (as just demonstrated) which reduces risk on non repayment and I am sure this was factored into bank’s lending decision.

Interestingly when TradeFlow raised $3.8 million in April 2022 I don’t recall seeing a RNS announcement.

ElllllTel

A conventional bank loan at around 5.2% interest is clearly better than Mercator’s effective interest rate of 47%.

A conventional bank must have also been persuaded that business has reasonable prospects of being paid which I agree is further good news. The bank might have also have taken view that company could do a future placing to refinance loan into account when lending the cash as loan is #mall versus current market capitalisation.

The fact that it is unsecured isn’t a surprise because SYME doesn’t have any assets on balance sheet to charge it against. The intangibles have been written off by SYME.

Furthermore creditors, even unsecured ones rank ahead of shareholders in a winding up scenario so your comment about shareholders being protected because loan is unsecured is simply nonsense.

Ellllltel
Omni now hold 1.332 billion shares per today’s RNS

Omni held 1.560 billion shares per 1 August RNS

A difference of 228 million

Basic maths

Hughez87
On 27 April Venus.were issued with 2.77 billion shares when SYME issued shares were just over 40 billion.

Well over 6% and thus a disclosable interest.

So either your saying Venus don’t follow TR1 rules or your making stuff up as per usual.

The fund that bought into SYME has now sold 228 million shares.

Hughez87
Venus had no disclosable holding in Prospectus why because they sold all the previous shares issued to them at 0.05 pence for a tasty profit.

Hughez87
Well so far I have been right to be sceptical of SYME’s claims and your ramping.

Let see how strong SYME’s cash position is in six months time when they have to get 2022 accounts signed off as a going concern for another 12 months.

Let see if Venus holds its shares or dumps them over time just like it has so far with all previous shares it acquired.

Shareholders will discover by 17 October whether Mercator are being repaid in cash or shares. Shares in issue could increase to 66 or 73 billion according to Prospectus.

I expect that Mercator will take the cash and it will be 66 billion shares which is SYME’s preferred choice.

SYME will emerge with a much cleaner balance sheet once the transactions are processed with no Mercator loans, no Venus loans or further Venus facilities just a large number of warrants that can be exercised.

The price significant dilution to existing holders.

The big question will Venus sell down its massively enlarged stake?

The share issues will dramatically improve SYME’s balance sheet.

Venus has about 1.2 billion shares at 0.05 pence left and 7.5 billion on optional tranche which works on VWAP formula

Depends how much cash SYME needs and when Prospectus is issued I reckon.

Ellltel
Just quoting some facts which you don’t like.

Tough.

Anyway back to work now.

The SYME interims contain a number of forward looking assessments and the Directors who have access to latest information and status of contracts have decided the following:

1 Tradeflow goodwill should be further impaired by £765,000 taking total to £1,565,000 since July 2021
2 SYME intangibles impaired by £151,000
3 Material uncertainty over going concern

Yet somehow bulls pluck a few well honed phrases by AZ to think that things are about to get much better.

Looks like somebody loves SYME

Perhaps the hedge fund buying some more?

If Tradeflow prospects for the future are so strong why did Directors impair the goodwill after looking at future projections of revenue by a further £765,000?

As usual no details are provided of the levels of funds under management but we do know that Tradeflow operating loss was £584,000 or close to £100,000 of cash burn every month.

Even worse results than I estimated a few days ago.

Tradeflow revenue down on prior periods, no SYME revenue at all.

Huge loss for period

Tradeflow goodwill and SYME intangibles both impaired again.

Material uncertainty over going concern.

Massive levels of Mercator and Tradeflow debt still outstanding so Venus facility will be utilised for rest of year to pay previous debt and ongoing losses.

Lex
Tradeflow’s capital under management grew by 17% in Q1 2022 per page 5 of SYME 2021 annual report.

I haven’t seen any new capital announcements subsequently.

So I expect some uptick in Tradeflow revenue but not a trebling and not from DP World where first deal only occurred on.22 June 2022.

For 2nd half of 2021 Tradeflow revenue was £259,000 and it’s operating loss was £407,000 again per annual report.

Assume Tradeflow revenue for 2022 is £700,000 that would put Tradeflow carrying value in accounts on a valuation of around 10 times revenue for a business that isn’t growing that fast in tech terms and remains loss making due to lack of scale.

SYME’s second half 2021 revenue was £8,000! down from £271,000 for first half of 2021 so should be an easy target to beat.

I am expecting some poor results from SYME for interims with lots of jam tomorrow promises from AZ to give faithful happy and a reason to keep buying Venus share issues.

Nobby

You right that the income statement cash burn will be lower than the income statement loss as Tradeflow intangible amortisation, earnouts don’t impact the cashflow.

.A large element of cash burn is not income statement related but arises due to the need to repay Mercator death spiral of several million unpaid at year end which is partly why SYME is getting through the Venus facility as such a rapid rate.

Nobby
Your too kind the loss will much higher than £2.5 million.

Have you factored impact of amortisation of Tradeflow intangibles, Tradeflow earnout etc in your estimate?