Key points:
- Supply@Me Capital shares crashed 25.3% on £475,000 capital raise.
- The firm issued 950 million shares to Venus Capital priced at 0.05p each.
- SYME continues to make positive progress. Is it a buy?
The Supply@Me Capital PLC (LON: SYME) share price crashed 25.26% after revealing that it had issued 950 million shares worth £475,000 to Venus Capital under the equity funding facility between the two firms announced on 27 April 2022.
SYME reminded investors that Venus Capital did not subscribe to the fourth mandatory tranche unveiled on 18 August 2022 since it was fully subscribed for by the qualifying shareholders eager to snap up the new shares to support the company.
Also read: Five Best Shares For Beginners To Watch In 2022.
Investors’ reaction to the announcement was better than expected, given the new shares were priced at 0.05p each, yet the lowest price reached by SYME shares was 0.09p. The inventory monetisation company reminded investors that the financing facility was a crucial part of its overall Capital Enhancement Plan, as announced on 27 April 2022.
SYME also issued one warrant for every two fifth tranche shares issued today, which are exercisable at 0.065p each at any time up to 31 December 2025. In addition, the company issued unsecured loan notes worth £47,500, whose proceeds will be used to settle the fees due to Venus Capital from the issuance of the fifth tranche.
Supply@Me Capital continues to move forward with its mission to revolutionise global inventory monetisation with its innovative technology-driven platform. However, the company has attracted a group of naysayers but continues to prove them wrong over time.
The company still has a long way to go before it can be profitable, and its business model is thoroughly proven in the markets, but it is taking steps and progressing in the right direction.
So, should you buy SYME shares? The answer depends on your investment goals and timeframe. Long-term investors may find the stock attractive.
*This is not investment advice.
Supply@Me Capital share price.
The Supply@Me Capital share price plunged 25.26% to trade at 0.0858p, falling from Friday’s closing price of 0.1148p.