Supply@Me (SYME) Shares Rallied 20% on Traditional IM Funding

The Supply@Me Capital PLC (LON: SYME) share price surged 20% after revealing that it had secured the first traditional funding commitment for its inventory monetisation activities from an institutional investor activating its traditional funding sources.

Investors cheered that SYME had attracted a firm commitment for its IM transactions from a traditional funding source compared to its inaugural IM transaction, funded by the VeChain foundation, which is not a traditional funding source.

The fintech company said it had already lined up its next IM deal with a leading Italian tyre-retreading company. SYME plans to monetise up to €1.2 million of warehoused goods by the client company and has first right of refusal on up to €10 million of the subsequent eligible inventory. 

SYME’s new inventory monetisation (IM) deal will leverage the recently passed Italian legislation pegno non possessorio (the “PNP Regulation“). It will be the country's first IM transaction under the non-agri-food-based inventory segment. 

The IM deal was signed by Supply@ME Stock Company 1 s.r.l. (the StockCo). The same subsidiary that signed the inaugural IM transaction, which has already generated positive returns for the parties involved in the transaction. 

SYME expects to fund more of the Italian company’s inventory, given the seasonal nature of the firm’s business. The company expects to finalise the deal on 28 April 2023, at which point it will provide more details to the public regarding its structure.  

Alessandro Zamboni, CEO of SYME, said: “I am very pleased to announce the execution of this binding commitment in respect of the first IM using traditional financing – a strategic pillar of Supply@ME's business model. As each funding route comes online, we are breaking down the remaining barriers to Supply@ME being recognised by potential funders globally, as the unique access point to a novel and untapped real asset class, as opposed to old-fashioned inventory financing deals, which we continue to observe in the market.”

SYME shares rallied higher on the news but had given up half their gains at writing. Today’s announcement was significant, and investors should pay attention to the firm. 

*This is not investment advice. 

SYME share price. 

The SYME share price rallied 20% to trade at 0.06p, from Tuesday’s closing price of 0.05p.