TIDMSYME
RNS Number : 4420Y
Supply@ME Capital PLC
03 January 2024
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 January 2024
Supply@ME Capital plc
(the "Company", "Supply@ME" or "SYME" and, together with its
subsidiaries, the "Group")
White-Label IM agreement: funding secured with Banco BPM S.p.A
to execute an initial IM transaction
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 that the Group has secured a commitment provided by Banco
BPM S.p.A. (the "WL Inventory Funder" or "BBPM") to fund an initial
IM transaction with an inventory value to be monetised up to
EUR10million of an existing client of BBPM (respectively the "WL
Client Company" and the "WL Transaction"). This commences the
Group's overall White-Label go-to-market strategy.
Background
On 29 September 2023, the Group stated, as part of the interim
results announcement, that it is now focusing its efforts on the
following core business lines:
-- IM transactions from the pipeline originated by the Group and
funded by third-party investors ("Open-Market IM"); and
-- IM deals with local commercial banks and their client
companies ("White-Label IM"). In this regard, SYME explained that
this route is expected to allow the Group to scale its revenue in
Italy, leveraging the balance sheet and the client base of the WL
Inventory Funder in specific supply chains. In parallel, the Group
continues to explore similar White-Label IM partnerships in the
UK.
The WL Transaction
BBPM is Italy's third largest financial services group in terms
of assets; of which over EUR100bn is accounted for through loans
and advances to their customers[1]. BBPM has a deeply rooted
presence in the northern regions of Italy, including those with the
highest industrial concentration in Europe.
The achievement of the commitment for the WL Transaction is a
key milestone for SYME which involved the collaboration across a
highly qualified working group consisting of the dedicated
functions of BBPM, the WL Client Company, external legal
specialists and an accounting team made up of two different Big
Four accounting firms in Italy, of which one is the auditor of the
WL Client Company.
Specifically, to deploy the first White-Label IM, BBPM, the WL
Client Company, the Group and a dedicated Stock Company (which is
owned by the CH Trading Hub[2]) have signed a binding term sheet ("
Commitment ") (subject to the finalisation of the relevant
definitive commercial agreements between the relevant parties)
which envisages the delivery of an IM transaction with the
following key features:
- the WL Client Company is within the Agrifood supply chain,
being a leading producer of the famous Italian cheeses;
- the dedicated Stock Company will fund the WL Transaction
through a combination of the secured EUR8.5million bank debt from
BBPM and EUR1.5million of equity investment from the CH Trading
Hub;
- specific remarketers have been identified who will be directly
engaged by the Stock Company to optionally sell the inventory (up
to EUR10million) in specific circumstances. In turn, the
remarketers could potentially be a beneficiary of separate
dedicated White-Label IM transactions in the future; and
- the WL Client Company has signed a commitment (up to
EUR10million) to become a remarketer of a potential client in
SYME's pipeline which operates in the same supply chain.
Following the signing of the Commitment, the working group is
now focussed on the delivery of the WL Transaction through the
execution of the definitive contractual agreements between the
relevant parties.
With reference to the CH Trading Hub, which is owned by Société
Financière Européenne S.A. ("SFE"), it is worth noting that, as of
today, Alessandro Zamboni, the CEO of SYME Group, has, along with a
number of other investors, a personal non-controlling interest in
SFE, with this entity acting as equity capital partner provider for
the CH Trading Hub. For this reason, the Commitment, and the
associated agreements between the Group and the dedicated Stock
Company that will be signed as part of the definitive commercial
agreements between the relevant parties ("Platform Agreements"),
constitute a material related party transaction for the purposes of
DTR 7.3 and were, accordingly, voted upon by the independent
Directors (excluding Alessandro Zamboni, who, in this case,
constituted a "related party" (as such term is defined in IFRS)),
and such independent Directors consider this material related party
transaction in respect of the Commitment, and the associated
Platform Agreements, to be fair and reasonable from the perspective
of the Company and its Shareholders who are not a related
party.
Alessandro Zamboni, CEO of SYME, said
" Achieving the Commitment from BBPM for our first White Label
transaction is a momentous milestone for the Group which
demonstrates the value and applicability of our proprietary
Inventory Monetisation model for commercial banks and their
customer base.
" BBPM is the perfect partner for us to initiate and scale our
White Label business line. It's credibility and long-standing
reputation as one of Italy's foremost leading banking groups will
enable us to bring our solution to a much greater number of
clients, providing a means for businesses to improve their capital
positions by offering access to funding based exclusively on the
value of their inventory. "
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,
investors@supplymecapital.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 warehoused goods waiting to
be sold to end-customers or goods that are part of a typical
import/export transaction.
[1] Source: BBPM Annual Accounts for the year ended 31 December
2022.
[2] Supply@ME has been collaborating with a group of private
investors and subject matter experts of working capital solutions
to launch an independent Swiss-based trading business (the "CH
Trading Hub") to replace the Cayman-based global inventory fund
("GIF"), previously advised by TradeFlow Capital Management Pte.
Ltd., in which the Company owns a minority interest. The CH Trading
Hub, owned by Société Financière Européenne S.A. ("SFE"), is also
expected to assume control of the independent Stock Companies from
the GIF once this restructuring is completed, to manage the overall
trading businesses using the Platform and the associated services
provided by the Group.
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END
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