TIDMSYME
RNS Number : 3970K
Supply @ME Capital PLC
21 December 2022
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.
21 December 2022
Supply@ME Capital plc
(the " Company " or " SYME ")
Strategic Alliance with VeChain Foundation
Web3 stream updates
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
update the market regarding the strategic alliance (the
"Agreement") with the VeChain Foundation [1] ("VeChain"), a
blockchain enterprise service provider focused on supply chain and
sustainability, and the "Web3" [2] stream.
Background
On 28 June 2022, the Company announced its entry into the
Agreement with VeChain, pursuant to which the parties began to
create the Web3 stream with the intention of funding up to US$10
million of IM transactions, leveraging the minting of dedicated
non-fungible tokens ("NFTs") to be directly subscribed for by
VeChain.
The Agreement has two phases, both in terms of investment
opportunities and technology development.
Phase One comprised the inaugural IM transaction, providing a
proof-of-concept, which was successfully executed on 12 September
2022.
Following the completion of the inaugural IM transaction, the
Agreement envisaged the commencement of Phase Two including an
assessment of the innovative process designed to link digital
assets to the real economy.
Inaugural IM transaction: update
The total value of the initial warehoused goods monetised was
approximately EUR1.6 million.
The counterparty in the inaugural IM transaction is a
well-established business with significant market presence in
Europe (predominantly in Italy), Africa and the United States (the
"Client Company"). The Client Company is involved in the design and
manufacture of industrial and specialised vehicles as well as
electronic systems, electrical wiring and other components.
As announced on 12 September 2022, the total expected average
annual fees to be invoiced by the Company's fully owned
subsidiaries over the duration of the inaugural IM transaction
equates to approximately 3% of the gross value of the inventory to
be monetised by the Stock (trading) Company. This is the upper
range the Company expected could be achievable for the "Captive"
Platform servicing fees as set out in the revenue model previously
disclosed by the Company.
The Company is pleased to confirm that the inaugural IM
transaction continues to produce the expected returns for both SYME
and the Stock Company, with no foreseeable operational issues. The
Client Company is also transferring inventory data from its
Enterprise Resource Planning system to the Platform, enabling
continuous monitoring of inventory movements and for the Stock
Company to forecast inventory buy-backs and manage potential
remarketing strategies.
Phase Two
Phase Two involves the creation of an "Inventory Monetisation
Platform 3.0" with an expected roadmap of Web3 features, including
the issuance of NFTs, digital ownership and business-to-business
(B2B) marketplaces, decentralised finance ("DeFi") and, overall, a
governance protocol.
Phase Two comprises:
- the assessment of an innovative process designed to link
digital assets to the real economy. The Company is working with
VeChain to improve automation between the Platform and the
VeChainThor blockchain services;
- the opportunity to involve multiple liquidity providers to
deploy new IM transactions (crypto asset managers and direct
investors through liquidity pools partnerships). In this regard,
SYME is compiling, from its global pipeline, a portfolio of
potential Client Companies up to approximately US$50 million of
inventory to be monetised, reflecting the commitment budgeted by
VeChain and, the opportunity to raise additional capital from the
VeChain community and other crypto/ digital assets investors. SYME
has also approached the market-leading Centrifuge [3] and MakerDAO
[4] communities to explore potential funding of IM transactions
through the Centrifuge protocol and to access liquidity through
DeFi; and
- the creation of a governance protocol. The Company produced,
with the support of its blockchain advisers, a strategic paper
regarding the launch of governance and utility token which is
expected to boost the investments into IM transactions performed
via the Web3 route.
SYME and VeChain intend to make further announcements regarding
the progress of Phase Two in due course.
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
MHP Group, SupplyME@mhpgroup.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 warehouse 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.
[1] https://www.vechain.org/
[2] According to the Messari report "Crypto theses 2022",
"crypto, or the recently en vogue "Web3", is an unstoppable force
in the long-term". "Web3 is a good and all-encompassing term that
captures cryptocurrencies (digital gold & stablecoins), smart
contract computing (Layer 1-2 platforms), decentralized hardware
infrastructure (video, storage, sensors, etc.), Non-Fungible Tokens
(digital ID & property rights), DeFi (financial services to
swap and collateralize web3 assets), the Metaverse (the digital
commons built in game-like environments), and community governance
(DAOs, or decentralized autonomous organizations)".
[3] https://centrifuge.io/
[4] https://makerdao.com/en/
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