Execution of first UK IM using traditional funding

Supply @ME Capital PLC

03 July 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU, WHICH IS PART OF UNITED KINGDOM DOMESTIC LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

3 July 2023

Supply@ME Capital plc

(the "Company" or "SYME")

Execution of first UK Inventory Monetisation© transaction using traditional funding sources

SYME, the fintech business which provides an innovative fintech platform (the "Platform") for use by manufacturing and trading companies to access Inventory Monetisation© ("IM") solutions enabling their businesses to generate cashflow, is pleased to announce the completion of commercial agreements for the first IM using traditional funding sources.

This announcement follows recent Company updates, including the RNS of 09 June 2023, when SYME disclosed that Supply@ME UK Stock Company 4 Ltd.  (the "UK StockCo") had secured a binding commitment (the "Commitment") provided by an institutional investor (the "Investor") to invest in the first UK IM using traditional funding sources (the "Transaction"), pursuant to the Company's action plan to work with a consortium of European investors to fund IM transactions with monetisable value of up to €5m.

Per the execution of the definitive commercial agreements between the UK StockCo and the Client Company and the funding instruments subscribed by the Investor, the Commitment provided by the Investor will be used by the UK StockCo to monetise up to £1.8m of warehoused goods of a UK client company, which provides parts and technology to the global marine industry (the "Client Company").

The IM Transaction has been structured as follows:

·    UK StockCo entered into the commercial contractual package, with a duration of three years, with the Client Company to execute the IM Transaction.

·    with reference to SYME's wholly-owned subsidiaries:

o  Supply@ME Ltd. ("Supply@ME UK"), acting as originator and servicer, has in place an operating agreement with UK StockCo which includes an annual inventory servicing fee and, additionally, will charge the Client Company an up-front origination fee; and

o  Supply@ME Technologies S.r.l., the owner of the IM intellectual property rights and Platform provider, has in place a license agreement with UK StockCo and will charge an annual Platform fee. The Platform will be used by the Client Company to upload inventory to be monetised, integrate and transfer the Enterprise-Resource-Planning data to allow the necessary monitoring and inspection activities by UK StockCo, supported by Supply@ME UK.

·    UK StockCo, in turn, shall issue a bond subscribed for by the Investor. The investor has floating charge over the inventory owned by UK Stock Co.

The total expected average annual fees to be invoiced by the Company's wholly-owned subsidiaries, as detailed above, over the duration of the IM Transaction, equates to approximately 3% of the gross value of the Client Company's inventory to be monetised by the UK StockCo. This is in line with the range the Company expected could be achievable for the "Captive" Platform servicing fees as set out in the revenue model previously disclosed by the Company.

Alessandro Zamboni, CEO of SYME, said: "We are very pleased to be able to announce the execution of the first UK IM transaction powered by traditional funding sources. This transaction is testament to the market leading model of Supply@ME and provides another example of the value we can help corporates, funders and client companies to unlock."

"The structure of the agreement we have facilitated will provide the blueprint for future transactions in the UK using traditional funding sources, opening the door to others looking to secure working capital."

"We aim at scaling the business also in UK, exploring the opportunity, as in Italy, to clinch white-label and self-funding alliances with commercial and investment banks".

For the purposes of UK MAR, the person responsible for arranging release of this announcement on behalf of SYME is Alessandro Zamboni, CEO.

Contact information:

Alessandro Zamboni, CEO, Supply@ME Capital plc, [e-mail]

MHP Group, [e-mail]

Notes:

SYME and its operating subsidiaries provide its Platform for use by manufacturing and trading companies to access inventory trade solutions enabling their businesses to generate cashflow, via a non-credit approach and without incurring debt.  This is achieved by their existing eligible inventory being added to the Platform and then monetised via purchase by third party Inventory Funders.  The inventory to be monetised can include warehoused goods waiting to be sold to end-customers or goods that are part of a typical import/export transaction.

 

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