Shares of Supply@Me Capital PLC (LON: SYME) today surged 67.4% after the company announced a strategic inventory funding agreement with a new “captive bank” worth up to €8 billion over the next five years.
The company revealed that it had signed a strategic agreement with a leading European alternative investment firm and its shareholders, 1AF2 and The AvantGarde Group, to acquire a yet to be named European bank.
SYME will name the bank once all contractual and regulatory procedures are completed.
SYME said the bank will:
- Subscribe for all funding note issuances in line with the bank’s capital adequacy targets which have already been agreed.
- Provide funding across the Supply@Me group’s international operating regions subject to country-specific banking licence restrictions
- Co-investing with institutional investors in securitisation notes issued by the Platform
The AvantGarde Group will be in charge of the bank’s operations including selecting its CEO, while the financial partner will be in charge of supervising the bank’s governance structures.
The firm also revealed that the acquired bank will have cumulative inventory funding requirements of up to €4 billion by the end of 2021, with the target rising to €8 billion by 2024.
Supply@ME share price
SYME shares today surged 67.4% to trade at a high of 0.80p having ended last week’s session trading at 0.478p.