Key points:
- Supply@Me shares edged lower after receiving a conversion notice.
- The company’s shares have fallen 37% in 2022, but will it keep falling?
- I would wait for a strong bullish signal before buying, as I favour the upside.
The Supply@Me Capital PLC (LON: SYME) share price edged lower after revealing that it had received a partial conversion notice from Mercator Capital Management Fund LP.
Mercator has requested to convert £500,000 of the principal amount of the convertible loan note issued by Supply@Me Capital on 2 February 2022 worth £678,333.34.
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SYME will issue 489,787,922 new shares to Mercator, each worth £0.0010, representing 1.3% of the company’s issued share capital before issuing the conversion shares.
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After the issuance of the conversion shares, SYME will be left with an outstanding convertible loan note worth £178,333.34. The company also issued warrants worth 20% of the total principal amount of the convertible loan notes issued to Mercator.
Supply@Me Capital revealed that it had written to the UK’s Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) to have the conversion shares admitted to trading on the LSE’s primary market. They will start trading on 28 February 2022.
Investors barely reacted to the news, evidenced by the 0.01p decline in SYME’s share price today.
SYME’s last significant announcement was on 18 February 2022 when it revealed that it was joining DP World’s Cargoes Finance platform, where is TradeFlow non-credit facility for in-transit and warehoused goods shall be integrated into the platform.
The Cargoes platform allows SMEs to access capital from leading financial institutions globally. SYME would join the platform via its Investment Advisory services division to generate revenues from the services rendered via the platform.
At the time, I mentioned that SYME shares were looking attractive since they had fallen 37% in 2022 as investors struggled to figure out when the company should start generating a profit.
I still think SYME could generate significant returns for investors in the future, but not now. Investors should watch the stock for signs of a strong uptrend in the form of significant bullish daily candles.
Until then, I would watch the stock from the sidelines, although there is very little room for SYME’s shares to fall compared to the significant upward potential.
*This is not investment advice. Always do your due diligence before making investment decisions.
Supply@Me Capital share price.
Supply@Me Capital shares edged 9.09% lower to trade at 0.10p, falling from their opening price of 0.11p.