SYME Shares Plunged 20% on Director Resignations, TradeFlow Sale

The Supply@Me Capital PLC (LON: SYME) share price fell 20% after revealing that two of its statutory directors who managed its wholly owned subsidiary TradeFlow Capital Management Pte. Limited had resigned from their positions immediately. The directors are Mr John Collis and Dr Thomas (Tom) James.

The inventory monetisation company further revealed that the two directors would continue in their current roles within TradeFlow Capital. The directors also notified the SYME board of their intention to buy back 100% of TradeFlow Capital’s outstanding shares to take complete control of the company.

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SYME reassured investors that its board of directors was prepared for such an eventuality given that the company was already divesting 85% of its stake in TradeFlow Capital to the directors to separate TradeFlow’s fintech activities from its regulated fund management activities and unlock more value for its shareholders. 

Supply@Me Capital was already working on restructuring the TradeFlow Group to separate its regulated fund management business, which is regulated in Singapore by the Monetary Authority of Singapore (MAS). SYEM was about to sell back 85% of TradeFlow to the two directors before they decided to quit and take over 100% of the company. 

Luckily for the directors, specific earn-out agreements stipulated in TradeFlow’s acquisition allow them to buy back 100% of the company within two years of the takeover, completed on 6 July 2021. Therefore, the directors had up to 6 July 2023 to trigger the 100% acquisition clause. 

The acquisition clause allows the TradeFlow directors to buy back the company at the lower fixed price of £40,000,000 or the company’s fair value as determined by a valuer qualified as a Certified Valuation Analyst by NACVA minus a discount. The firm’s last independent valuation as of 30 September 2022 was £25.6 million. 

SYME has yet to divest TradeFlow Group, which remains its wholly-owned subsidiary until it agrees on the company’s value and completes selling it back to the directors. Meanwhile, investors’ reaction to the announcement was expected, given that SYME will lose a potential revenue stream once it divests TradeFlow Capital. 

*This is not investment advice. 

The SYME share price. 

The SYME share price fell 20% to trade at 0.04p, from Thursday’s closing price of 0.05p.