Inventory Funding: Year-End Update

31 December 2020

Supply@ME Capital plc

(The "Company" or "SYME")

Inventory Funding: Year-End Update

Supply@ME Capital plc, the innovative fintech platform which provides the Inventory Monetisation^© service to manufacturing and trading companies, is pleased to provide the following update on its first securitisation issuance, co-arranged and distributed by StormHarbour Securities LLP.

SYME and StormHarbour have now successfully completed the legal documentation, process definition and operating structure for its repeatable and scalable securitised investment product.  The eligible Client Companies are ready to implement the inventory monetisation process and their financial advisory teams (including external auditors numbering among them two of the Big4^[1] audit firms) have approved the structure and derecognition accounting treatment of the inventory monetisation transaction.

In the Update of 30 November 2020, SYME stated that one of the objectives of this period of work on the Open-Funding securitisation model has been to create a new Inventory Monetisation asset class that reflects best practice principles in the securitisation market.  The completion of this stage now enables SYME to programme a series of securitisation issuances that, together with cornerstone investment from its Captive Bank operation, should provide access to a deeper, ongoing pool of capital, facilitating the provision of the inventory monetisation service across several active geographies.

Further steps towards the implementation of this wider securitisation programme with the Inventory Funder include negotiations regarding:

·    a move from the "single transaction" to an Inventory Monetisation programme for the whole of 2021; SYME expects that this "size-increase" combined with a more flexible funding structure would allow the Platform to monetise its entire current portfolio of eligible Client Companies across a series of securitisation rounds;

·    a potential minority equity investment by the Inventory Funder in the capital of the Company; and

·    given the funding capacity of the Quadrivio Group, a widening of discussions relating to their involvement in all securitisation issuances, via the Captive Bank.

Early in the New Year, the eligible Client Companies will receive a formal, confidential communication from SYME disclosing the identity of the Inventory Funder and the time-table to execute their individual inventory monetisation transactions.  Shortly thereafter, the Company intends to disclose to the market the identity of the Inventory Funder, the key features of the Inventory Monetisation programme and the targeted positive revenue impact for SYME.  

The Company expects to make these disclosures within the next month once the Inventory Funder confirms its release from the non-disclosure agreement or as required by market disclosure regulations.

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, [email protected]

Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780;  [email protected]

Brian Norris, Cicero/AMO, +44 (0)20 7947 5317