TIDMSYME
RNS Number : 0714Z
Supply @ME Capital PLC
12 September 2022
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.
12 September 2022
Supply@ME Capital plc
(the "Company" or "SYME")
Inaugural Inventory Monetisation(c) transaction executed
SYME, the fintech business which provides an innovative fintech
platform (the "Platform") for use by manufacturing and trading
companies to access Inventory Monetisation(c) ("IM") solutions
enabling their businesses to generate cashflow, is pleased to
announce the execution of its first IM transaction.
This announcement follows recent Company updates, including the
RNS of 28 June 2022, when SYME disclosed the strategic alliance
(the "Agreement") entered into with VeChain Foundation[1]
("VeChain"), which is aimed at launching the Web3[2] stream with
the intention of funding up to USD $10m of IM transactions,
leveraging the minting of dedicated Non-Fungible Tokens ("NFT") to
be directly subscribed for by VeChain.
The counterparty to SYME's inaugural IM transaction is a
well-established business with significant market presence in
Europe (mainly in Italy), Africa and the United States (the "Client
Company"). The Client Company is involved in the design and
manufacture of industrial and specialised vehicles as well as
electronic systems, electrical wiring, and other components[3].
The IM transaction has been structured as follows:
-- the Stock (trading) Company ("StockCo"), an overview of which
was given in the SYME Business Model Canvas in the Company's Annual
Report and Accounts for the year ended 31 December 2021, entered
into the commercial contractual package, with a duration of three
years, with the Client Company to execute the IM transaction. The
total value of the initial warehoused goods to be monetised is
approximately EUR1.6m;
-- with reference to the fully owned SYME subsidiaries:
o Supply@ME S.r.l. ("Supply@ME Italy"), acting as originator and
servicer, signed an operating agreement with 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., owner of the IM intellectual
property rights and acting as Platform provider, has signed a
license agreement with the StockCo and will charge an annual
Platform fee. The Platform will be used by the Client Company to
upload inventory to be monetised (and, accordingly, minting the
NFTs), integrate and transfer the Enterprise-Resource-Planning data
to allow the necessary monitoring and inspection activities by the
StockCo, supported by Supply@ME Italy;
-- StockCo, in turn, mints NFTs to be subscribed by VeChain
under the Agreement. Each NFT represents a basket of rights over
the inventory, including the opportunity to achieve monthly returns
generated by the inventory trading activities performed by the
StockCo and the right of the NFT holder, as ultimate owner of the
goods, to take possession of the physical goods if certain
conditions are met.
The total expected average annual fees to be invoiced by the
Company's fully owned subsidiaries, as detailed above, over the
duration of this specific transaction, equates to approximately 3%
of the gross value of the inventory to be monetised by the StockCo.
This is the upper 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.
In parallel, the Company is working on multiple further
inventory funding streams in order to arrange and deploy new IM
transactions, leveraging the traditional funding routes. Further
updates will be made in due course regarding SYME's white label
proposition.
Alessandro Zamboni, CEO of SYME, said: "We are delighted to have
completed our inaugural IM transaction, supporting our Client
Company in this new phase of just-in-case inventory management
strategies. The technical innovation at the heart of our service is
truly unique within the market. "
"We are well aware that, given the complexity of our model, it
has taken more time than expected for the first IM transaction to
be executed, but this will now help traditional Inventory Funders
to understand, in detail, the features of the model and fully
recognise its feasibility and viability. Thanks to the successful
completion of this first IM transaction, we further expect the
opportunity to co-design new self-funding and white-label
solutions, together with the financial services industry. "
"The involvement of VeChain, an organisation that is renowned in
the sustainability and supply chain sector, will boost the
confidence of traditional Inventory Funders in using blockchain
solutions on real business cases. It will also build the
foundations for Decentralised Finance protocols combined with our
IM service to support the real economy and the global supply
chains. "
For the purposes of UK MAR, the person responsible for arranging
release of this announcement on behalf of SYME is Alessandro
Zamboni, CEO.
Enquiries
Investors & Analysts:
Alessandro Zamboni, CEO, Supply@ME Capital plc,
investors@supplymecapital.com
Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780;
paul.vann@walbrookpr.com
Media:
Nicole Louis, MHP, Nicole.Louis@mhpc.com
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 warehouse goods waiting to be
sold to end-customers or goods/commodities that are part of a
typical import/export transaction. SYME announced in August 2021
the launch of a global Inventory Monetisation programme which will
be focused on both inventory in transit monetisation and warehoused
goods monetisation. This programme will be focused on creditworthy
companies and not those in distress or otherwise seeking to
monetise illiquid inventories.
[1] https://www.vechain.org/.
[2] According to the Messari report "Crypto theses 2022",
"crypto, or the recently en vogue "Web3", is an unstoppable force
in the long-term". "Web3 is a good and all-encompassing term that
captures cryptocurrencies (digital gold & stablecoins), smart
contract computing (Layer 1-2 platforms), decentralized hardware
infrastructure (video, storage, sensors, etc), Non-Fungible Tokens
(digital ID & property rights), DeFi (financial services to
swap and collateralize web3 assets), the Metaverse (the digital
commons built in game-like environments), and community governance
(DAOs, or decentralized autonomous organizations)".
[3] SYME will not be disclosing the names of client companies
unless these entities have given express permission to do so.
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END
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