Inventory Funding and Investor Update

RNS Number : 5946Y

Supply @ME Capital PLC

10 September 2020

 

10 September 2020

Supply@Me Capital plc

(The "Company", "SYME" or "Supply@Me")

Inventory funding and institutional investors relationship update

Supply@ME Capital plc, the innovative fintech platform which provides a unique, market leading Inventory Monetisation^© service to European manufacturing and trading companies, is pleased to announce the following updates.

1. Securitised Note Issuance (through StormHarbour Securities)

As planned, the Company has received offers, subject to contract, from a number of large, global institutional investors, to provide funding, in the form of securitisation notes, in order to monetise more than €300m of inventory.  There has been strong demand from a number of investment funds (including private equity and multilateral financial institutions supporting businesses that are promoting post COVID growth) which are individually requesting exclusivity for the securitisation notes issuance, and which are also remaining available for strategic support to the Company for the next funding rounds. The Company is currently analysing whether to syndicate this first securitisation issuance or work on an exclusive basis with one of the Funds mentioned above. Meanwhile SYME is keen to complete the signing of binding contracts with regard to the Client companies forming part of the securitisation portfolio by the end of September.

2. UK Programme

The funding due diligence provided by a leading UK capital markets organisation has been positively completed. The Company is negotiating a funding term sheet in order to commence delivery of the inventory monetisation service in respect of the first portfolio of UK Client companies.

3. Italian Sell-funding agreements

The Company has agreed the key terms of the partnership with 2 local Banks. With one of these, the Parties are studying a more extended relationship. Pursuant to banking regulation, the agreements with SYME will be approved by the relevant internal committees by the end of September.

Furthermore, the Company has been invited to a tender promoted by Finlombarda (the main Lombardy public bank) in relation to fintech services to be provided to local SMEs.

4. Middle-East Programme

A Shari'a assessment on the Supply@ME Platform provided by an internal specialised department of a global bank has been positively completed. This Bank has also identified a local Funding Partner available to support the UAE Programme of SYME and iMass (MENA strategic Partner - as announced by SYME in the RNS of 10 August).

The Parties above are currently agreeing a Memorandum of Understanding, details of which will be published in a separate announcement.

5. Institutional equity agreements

By virtue of the huge underserved market and the unique - proven - inventory monetisation service, the strategic Partners above have been asking to SYME to invest - directly or indirectly - into the capital of the Company, pursuant to confidentiality agreements in place relating to the business alliances which are on track. These agreements anticipate both broker to broker transfers and open market transactions as recent trading has proved.

The Company will provide full details of this institution's financial support, and its identity, following completion of the contractual arrangements and the advancement of the contract referred to the business streams above.

Notes

Supply@ME enables businesses to generate cashflow, without incurring debt, by monetising their existing stock.  Before a business has found an end-customer for its inventory, the Supply@ME platform enables them to sell ("monetise") their stock and receive cash immediately to boost their working capital. The Supply@ME service enables strong companies to improve their working capital cycle.  SYME does not monetise inventory for companies in financial difficulty or with inventory that they are struggling to sell.

Contacts

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

Paul Vann, Walbrook PR Limited: [phone]

Brian Norris, Cicero/AMO, [phone]

 

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