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[email protected] (SYME) Shares Plunged 17% Despite Positive Update

Simon Mugo trader
Updated 20 Jan 2023

The [email protected] Capital PLC (LON: SYME) share price plunged 16.7% after releasing an update about its operations in 2022. The fintech company noted that it had grown its pipeline of potential inventory monetisation (IM) transactions. It is working on the first IM transactions backed by traditional funders in the UK and Italy.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The inventory monetisation firm noted that its client origination efforts were progressing well as it had grown its pipeline of companies with warehoused goods inventories suitable for monetisation from £329.8m as of 23 September 2022 to £343.5m as of 31 December 2022.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

However, investors were not persuaded by the update despite the company’s numerous positive achievements. Instead, investors were focused on SYME shelving some of its projects, including its Sharaih-compliant product, as it looked for the right market fit to restart the program. 

SYME also revealed that it was considering larger inventory monetisation deals close to the £/€/US$ 10 million mark due to significant interest from potential inventory funders. The firm said it had identified several high-ticket IM transactions that could be executed this year.  

Following the closing of its inaugural IM transaction in 2022, SYME is working on securing more deals via the Global Inventory Fund (GIF) under its existing Cayman-based structure serviced by the APEX Group and advised by TradeFlow. 

SYME is also considering partnering directly with global and local banks interested in using the Platform to serve their clients directly. The firm has two business models for banks: the “self-funding” program, where the bank uses SYME’s platform, and its legal and accounting framework to fund companies that are already its clients. 

The second business model is the “white-label” model, where the bank only uses SYME’s platform technology to fund its existing clients. SYME noted that the business model had attracted interest from multiple banks. 

SYME is also looking for more blockchain-based deals following its strategic agreement with VeChain Foundation, which led to the execution of its first IM transaction. The foundation committed to funding IM transactions worth up to US$50 million. 

The company is also looking forward to the passing of the PNP Regulation in its home market of Italy, which should turbocharge its efforts to close an IM transaction in the country. 

*This is not investment advice. 

The SYME share price chart.

The SYME share price plunged 16.67% to trade at 0.05p, from Thursday’s closing price of 0.06p.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading