The Supply@Me Capital PLC (LON: SYME) share price edged 7.69% after announcing the restructuring of TradeFlow Capital Management Pte to serve the needs of SYME's client companies and funders of both businesses better and to create value for the company’s shareholders.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
SYME intends to reduce its 100% ownership of TradeFlow to 19% by selling 81% of the issued share capital in TradeFlow to Tom James and John Collis (the Buyers), creating a distinct separation between SYME's inventory monetisation (IM) fintech Platform and TradeFlow's regulated fund management business.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The separation of the two businesses aims to improve the growth prospects of each business as a standalone unit and avoid any future conflicts of interest between the two divisions and any associated commercial and regulatory hurdles.
SYME's 81% stake in Tradeflow is worth a consideration of £14,386,100, also known as the cash quantum, of which £12,386,100 will be netted off against potential future amounts owed by SYME to the Buyers under the terms of an earn-out letter relating to the original acquisition of TradeFlow on 1 July 2021.
The remaining £2,000,000 of the cash quantum will be paid by The AvantGarde Group S.p.A. (TAG), which will assume the buyers’ obligation through a novation. TAG will pay the cash autumn to SYME in three tranches, with the final tranche being payable by 31 January 2024.
In exchange for assuming the £2,000,000 obligation of the Buyers, TAG will acquire 1,026,525,520 existing ordinary shares of nominal value £0.00002 each in the capital of SYME from the buyers.
Furthermore, TradeFlow will enter into a three-year white-label license agreement with Supply@ME Technologies S.r.l., a wholly owned subsidiary of SYME, for the use of the Platform, on a non-exclusive basis and limited to the Asia-Pacific (APAC) region, for a total consideration of £1,000,000 payable over three years.
SYME acquired TradeFlow on 1 July 2021 for a total accounting consideration of £7.1 million, split between cash consideration of £4.0 million and £3.1 million in equity consideration.
*This is not investment advice.
SYME share price.
The SYME share price edged 7.69% higher to trade at 0.14p, from Thursday’s closing price of 0.13p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.