Supply@ME Capital plc, the innovative fintech platform which provides a unique, market-leading Inventory Monetisation© service to European manufacturing and trading companies. Zak Mir spoke with Alessandro Zamboni and here is the list of questions and answers below that shareholders submitted.
- Is the captive bank regulatory approvals process on track?
Yes, the necessary regulatory approvals are on track, although Supply@ME does not determine the timetable for this. We expect to be able to update the market, on this area, by the end of the year.
- Can he give an indication of how the next inventory monetization’s will work? I.e. will there be several running in parallel or only one new tranche next march?
We have diversified our funding routes for inventory monetisation so that there are now three; open-funding through the securitisation programme, self-funding through partnerships with banking institutions and the Captive Bank funding. Supply@ME has also developed strategic partnerships to launch the platform in the US, UK and UAE, and launched a Shari’a compliant version of our Inventory Monetisation platform. Accordingly, there will now be several monetisation programmes, at various stages of development, running in parallel.
- You have recently been certified as Sharia compliant. Global scope and reach, not just ME and UAE. A market broadly valued up to $3trn. Are there talks or even plans about more spokes being added to “the new wheel”? Using your platform and IP to generate additional revenue streams beyond Inventory Monetisation?
Once the Platform has completed the authorisation process (as stated in the latest RNS), SYME will manage the onboarding of an initial portfolio of Client companies sourced through the Shari’a Funding Specialist’s network and the extensive commercial banking and business relationships of Mr. Khaled Abdulla Almass, owner of iMass. We will also enable the Shari’a Funding Specialist to raise capital through the distribution of Shari’a compliant notes or certificates issued by the Shari’a compliant Inventory Monetisation platform.
Once these stages are complete, we will explore whether Shari’a version of the platform could be rolled out in new geographies where Islamic Finance is an important part of the local financial services industry.
- Is there a timeline to announce Stormharbour news?
SYME is managing a rigorous project time-line alongside StormHarbour and the Funder.
The Company is evaluating to further update the market in order to inform on the progress of the completion process.
- It has been mentioned that it’s taken 4-5years for Supply@me to get to this point in the business, is there a goal or target that the board have in mind to have the company off the ground running fluidly?
The Supply@ME platform required significant time and investment to develop its unique structure. In 2020, we are seeing the results of that investment. We have achieved a number of milestones for the business, including geographic expansion into the UK, US and UAE and we are completing the first securitisation note issuance. We are now well placed to scale the platform across several geographies.
- Will the company have a list of the 142 (figure from September) companies that want to onboard with Supply@me
Supply@ME does not disclose the names of potential client companies which are undergoing due diligence.
- Update on UK pilot news and clients?
The UK pilot is making strong progress. We are reviewing and finalising agreements with partners, potential client companies and funders and will provide a comprehensive update via RNS as soon as practicable.
- When will we expect actual names of investors and funders (ie when will the NDAs end)?
We expect to name our Financial Partners at the completion of each securitisation issuance.
- For the first SH securitization is the number of clients and revenue expected to miss, hit, or exceed forecast?
The securitisation transaction – under placing by StormHarbour – is expected to have the features announced in the RNS of 30 October.
- Will there be a concrete number for additional revenue, i.e. X XY fees accrued from Due Dil etc.
We typically discloses aggregate revenues figures but not by individual contracts pursuant to the confidentiality agreements signed with the Client company and also protecting its competitive advantage.
SYME is also evaluating updating the existing research report provided by Proactive Investors.
- What is your target for the average contract size? £10m, £15m?
The target for the average contract funding size for the first group of clients is between €10-€15m.
- Previously you were interviewed stating you were onboarding 50 companies per month. Do you have the capacity for more and as an example, would you be capable of onboarding 100 clients per month by 2022?
One of the key features of SYME is the scalability and flexibility of the platform.
SYME is studying new service models in order to increase its onboarding capabilities.
- what is the impact of Brexit on the business given most of the business is run out of Italy?
SYME’s platform and service model is truly international and the Company does not envisage any issues with Brexit, in fact, dependent on any Trade Deal it might lead to a positive outcome.
- The first securitisation of €300m is expected to bring an average net annual servicing fee of £6.5m. How much of this will be profit?
Such a disclosure would amount to a profit forecast so we are not able to disclose that figure.
- Do you expect any delays for the next securitisation in March 2021?
We do not anticipate any at this stage. SYME is already working for new securitisation issuances, considering the other geographies (UK, UAE, US).
- Is the forecasted amount for the next securitisation in March 2021 still the same or has this increased?
The amount of the next securitisation issuance will be estimated again after the completion of the first transaction and also considering the role of the Captive Bank.
- how much of the £8bn available to invest via the affiliate bank, is now accounted for in deals signed or otherwise?
The RNS of 21 September 2020 stated the indicative cumulative inventory funding targets.
The Captive Bank has agreed to provide sufficient funds (via the subscription of the securitisation notes) for the Platform’ needs.
- What are the conditions of the shares transferred? Can these companies sell the shares when they want within the 2-year period that was stated in the RNS (29.07.20)? Or are these shares locked away in case the loan is not repaid on time?
The RNS of 29 July 2020 summarised the key terms of the stock loan agreements.
SYME can also state that the terms & conditions agreed will protect both the investors and the borrower.
- Are you surprised by the enormous attention (good and bad) that Supply@Me has received over the last few months, and how do you feel regarding the recent share price movement? What do you think has caused this?
We are not at all surprised. The SYME platform is a market disruptor which we believe will have huge and lasting implications across the Inventory Funding industry and, more in general, the working capital facilities market.
- Do you read the LSE and/or ADVFN forums discussing Supply@Me?
We are aware of a high volume of shareholders forum discussion.
However, it is the primary responsibility of the Directors to manage and grow the business rather than to respond to market rumour/ opinion (both good and bad).
- How confident are you regarding your option call at 0.69p on 31/12/2020, referenced in the RNS of 24th September?
We have every faith in the Platform and in the Company but do not control the share price.
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