LONDON, UK: SYME, the fintech business known for its innovative fintech platform, has successfully finalized commercial agreements for its first Inventory Monetisation© (IM) transaction using traditional funding sources. The completion of these agreements marks a significant milestone for the company.
Supply@ME UK Stock Company 4 Ltd. (UK StockCo), a subsidiary of SYME, secured a binding commitment from an institutional investor to invest in the transaction, as previously disclosed by the company in their action plan. The committed funds will be utilized by UK StockCo to monetize up to £1.8 million worth of warehoused goods from a UK client company operating in the global marine industry.
The IM transaction has been structured as follows: UK StockCo entered into a three-year commercial contractual package with the client company. Additionally, SYME’s subsidiaries, Supply@ME UK and Supply@ME Technologies, are involved in the process. Supply@ME UK acts as the originator and servicer, receiving an annual inventory servicing fee and an upfront origination fee from the client company. On the other hand, Supply@ME Technologies, the owner of the IM intellectual property rights and provider of the platform, charges an annual platform fee. The platform facilitates the uploading, integration, and transfer of inventory data for monitoring and inspection by UK StockCo.
To finance the transaction, UK StockCo will issue a bond subscribed to by the institutional investor. The bond is secured against the inventory owned by UK StockCo, providing collateral for the investor.
Over the duration of the IM transaction, the expected average annual fees from SYME’s subsidiaries equate to approximately 3% of the gross value of the client company’s inventory being monetized by UK StockCo. This aligns with the previously disclosed revenue model of the company.
Alessandro Zamboni, CEO of SYME, expressed satisfaction with the successful execution of the first UK IM transaction using traditional funding sources. He emphasized that this transaction serves as proof of the market-leading model of Supply@ME and demonstrates the value it can unlock for corporates, funders, and client companies. Zamboni also highlighted the agreement’s structure, which sets a blueprint for future transactions in the UK and opens opportunities for other companies seeking working capital.
Looking ahead, SYME aims to scale its business in the UK and explore possibilities for white-label and self-funding alliances with commercial and investment banks, similar to its operations in Italy.
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