Supply @ME Capital PLC Commitment for first IM from traditional funding (4549X)

TIDMSYME

RNS Number : 4549X

Supply @ME Capital PLC

26 April 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.

26 April 2023

Supply@ME Capital plc

(the "Company", " Supply@ME " or "SYME")

Supply@ME secures a binding commitment for first Inventory Monetisation transaction from 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(c) ("IM") solutions enabling their businesses to generate cashflow, is pleased to announce that Supply@ME Stock Company 1 s.r.l. (the "StockCo") has secured a binding commitment (the "Commitment") provided by an institutional investor (the "Investor") to invest in the first 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 EUR5m, as announced on 20 January 2023.

The Commitment provided by the Investor will be used by the StockCo to monetise up to EUR1.2m of warehoused goods of an Italian client company, which is one of the market leaders in the tyre re-treading sector with operations around the world (the "Client Company").

The Transaction will leverage the recently approved Italian legislation pegno non possessorio (the "PNP Regulation") and is expected to be first such IM transaction implemented in the market under the PNP Regulation legislation in respect of non-agri-food based inventory.

The Client Company has entered into a binding commitment with the StockCo to finalise the necessary definitive commercial agreements in relation to the Transaction by 28 April 2023. The StockCo is the same entity that is used for managing, with positive returns, the inaugural IM announced on 12 September 2022.

Due to the seasonal nature of demand for the Client Company's inventory and the fluctuating levels of inventory which it holds, the value of the inventory monetised is expected to increase, with the StockCo retaining a right of first refusal on inventory monetisation of the next EUR10m of eligible inventory.

SYME will provide further details regarding the Transaction following the execution of the definitive commercial agreements between the StockCo and the Client Company and the funding instruments subscribed by the Investor.

Alessandro Zamboni, CEO of SYME, said:

"I am very pleased to announce the execution of this binding commitment in respect of the first IM using traditional financing - a strategic pillar of Supply@ME's business model. As each funding route comes online, we are breaking down remaining barriers to Supply@ME being recognised by potential funders, globally, as the unique access point to a novel and untapped real asset class, as opposed to old fashioned inventory financing deals which we continue to observe in the market.

"We knew that the PNP Regulation had the potential to be a gamechanger, unlocking the potential in the Italian market wherein we have longstanding IM relationships with major banks and investors, and significant pipeline of prospective IM transactions. The milestone achieved today will enable us to further build our track record in Italy and strengthen our proposition there and in other geographies."

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. 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.

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April 26, 2023 02:00 ET (06:00 GMT)