Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
"To be fair ownership in the Rns was vague as was the reason for the need, and for me this is the concern "
I agree. How does moving the IP to a new company do anything positive for the value of the IP - it just doesn't unless NewCoTech is a wholly owned subsidiary of SYME which isn't stated.
What it does do is devalue SYME in a very significant way if NewCoTech is not a full subsidiary of SYME.
if my thinking is correct, SYME will have to be kept going for some months to try to avoid any possibility of claims by a liquidator (if it does go bust) to the effect that the IP was moved only because it was obvious that the company was going to fail and to keep valuable assets out of the hands of the liquidator. In that case any assignment of IP could be unwound but if SYME does keep going for some time then such an unwinding would be unlikely given the volume of businesses that do go bust and the fact that the IP may not be that valuable as things currently stand anyway.
It's by no means certain that the above is the thinking behind these actions but (and especially when coupled to the information that NewCoTech is going to be counterparty to white label contracts going forward) in the absence of a sensible explanation for these actions, this rationale is the one that came immediately to my mind on reading the RNS but I'm not privy to all the goings on in SYME by any means. Very strange course of action on the surface though.
If the IP is held by NewCoTech, how will SYME own it unless NewCoTech is a wholly owned subsidiary of SYME which we are not told and therefore we have to assume isn't?
The wording of the relevant paragraph of the RNS could be better but it is saying that SYME is not going to own the IP in the software (the technology) that will make IM work. When you couple that to the statement that NewCoTech is going to be counterparty to the agreements then outside of TF activities, how will SYME benefit from any IM deals?
"you know full well patents are only delivered on proof of market."
Forget patents - there are no patents. It's all about the ownership of the copyright in the software.
I'm amazed I have to say this as it's 'Business 101'.
The owner of the copyright is the 'author of the work' which in all likelihood in the case of the software written to make IM possible will be SYME.
You don't have a clue about IP Rosie despite what you profess.
I don't know why you say that there is no IP. There clearly is and if it was not held by SYME then the directors would be guilty of out and out fraud in not having made that clear. So there is little chance of the IP not existing and being owned by SYME until it is assigned to another entity (NewCoTech here).
What is more perplexing is the fact that contracts going forward will be entered into between 3rd parties and NewCoTech which begs the question as to how SYME is going to generate an income outside of TF activities. Any IM contracts will be between NeCoTech and 3rd parties from what I'm reading (very little info to go on).
By doing this, if SYME goes bust the IP (the value of all the software that is designed to make IM work and associated activities) is protected from creditors and liquidators (though it can be challenged by liquidators) since it will be owned by NewCoTech.
The big question then becomes "who owns NewCoTech?".
Am I missing something?
It seems that the only things of value (i.e. the IP and who is the counterparty to agreements) is being transferred to NewCoTech:-
" In connection with this application, the Company established on 25 March 2022, Supply@ME technologies S.r.l. (the "NewCoTech"). The purpose of NewCoTech is to hold the Group's Intellectual Property rights relating to the Platform, together with future developments in a dedicated entity. This will highlight the value generated by the Platform in terms of trademarks, technology and innovative legal & accounting frameworks. It is also envisaged that NewCoTech will be the direct counterparty of White-Label contracts and other potential strategic partnerships which the Group is evaluating."
If NewCoTech are going to be holding the IP and are to be the counterparty to contracts then there will be a legal assignment of the IP to NewCoTech and it will be NewCoTech who will be the legal owners of any contracts with 3rd parties. This is the entire value of SYME. I didn't see anything that said that NewCoTech would be a subsidiary of SYME so it seems that there is no or won't be any value left in SYME when this is concluded.
This is speculation of course but with all of his other non-exec positions with banks, finance and other large outfits I'm guessing that Jim Coyle is going to be up to his neck in governance issues when all those entities have to start revealing their Russian business links. I'm not for one second suggesting that Coyle has done anything wrong but it is the non-execs jobs to keep a beady eye on governance and some of those banks, finance institutions (etc) are going to be answering some difficult questions re Russian monies very soon and there will, in the not too distant future, be a spotlight on how the non-execs have performed their duties. Some Non-execs are suddenly going to become very very very busy and SYME is just a minnow for a player of the calibre of Coyle whose time is going to soon become very precious.
I think this a better explanation for Coyle's sudden departure. They wouldn't say 'J Coyle is leaving because the poo is about to hit the fan big time at a number of companies where he is a non-exec' would they?
I am not for one second saying the Coyle has done anything wrong just that he is going to be spread very thin over the next few months to a year (or more) in doing his job as a non-exec at somewhere like HSBC for example (it will be interesting to see how HSBC comes out of the Russian situation).
..... alternatively, it could simply be that Coyle has read the runes regarding SYME and decided to bail.
Personally, knowing something of the fallout that is going to happen in the banking/finance world when the extensive Russian/Putin/Putin proxy links start to be revealed to the investor press, I think the former reason is actually the dominant/driving factor for this event and once more, I am not suggesting that Coyle is in anyway in the wrong where his other company non-exec activities are in question.
It's excellent that there are wise and experienced heads putting everything in order and ensuring corporate governance at this stage. It's actually indicative of the Execs and non-Execs being aware of good things on the near horizon. If these things had to be sorted after the 1st and subsequent IMs it woul be very messy. Doing it know sends all the right signals to the regulators and sets a solid 'fully resolved' scenario going forward.
Thank you for your kind words. I was only passing on what I have experienced through being involved in and negotiating for various businesses over the years. Jo comes over as someone who has his business head properly screwed on which should be no surprise given his background and experience.
Was the 29million buy at 11:27 today at .0028 just one big buy (£81,200) or a consolidation of a lot of 'smaller' buys? If, as looks likely it's one big buy, it shows a lot of confidence as to where the SP's going.
BrassGemini - your reasoning is illogical since what you are saying and where you are coming from is saying that once the SP is down that's it, it can't go back up. That's nonsense on stilts.
Do you know that many extremely successful companies hit incredible lows at first?
Of course you do but that's not what you're about is it? Did you by any chance put a lot of money into this and then panicked when it started to tumble and bailed out with a big loss? I ask because you come over as someone very bitter.
BrassGemini - you are obviously not a technologist to be saying what you said. You want the dashboard to be easy to understand, easy to learn and easy to use (I speak as a software engineer). All the clever stuff is done in the backend which is unseen by the user (as it should be).
I would expect there to be an announcement when they recruit someone and from what is said on LinkedIn, they have more than one position to fill.
Once this new facility starts to be taken up I don't think it will take anything like 5yrs for the SP to go north rapidly. It's all about getting an initial credible amount of companies to use the IM service. Nobody likes to go first but there are some serious players behind this so it won't take much bravery for companies to try this out and when they see that it works the traction and attraction for the service will increase and you then have a snowball effect.
Hopefully you won't have to sell anytime soon and be around to see some serious profit.
If AZ comes up with good news by the end of the month things will move very positively quickly though probably not initially to the stratospheric levels some are predicting - that's for later if all goes well (I am optimistic on this) - just back up close to 1p or possibly 1.5p (though I hope I'm too pessimistic). If he misses this deadline then the SP will unquestionably drop more but some of us will just see that as an opportunity to buy more at a very low price.
You have a tough decision to make and I don't envy you but I hope you make the right one for you.