Supply@ME Capital has announced that a strategic agreement with a banking acquisition in Europe is to spearhead rapid growth for the inventory monetisation platform with 8bn EUR in funding for the platform expected.
The acquisition is in accordance with an agreement with leading European Alternative Investment firm, SYME shareholders and a number of other parties will essentially see the bank serve as a captive bank in order to underpin growth for SYME. The bank will be owned by the alternative investment financial partner and co-investors – SYME itself will not be a bank shareholder.
As part of the deal, the bank will provide up to 8bn EUR of funding over five years in order to support inventory funding requirements for SYME on a global basis.
On an operational basis and commercial basis, this transformational move will allow SYME to:
- Increase its inventory funding target from 4bn EUR to at least 8bn EUR at the end of 2024
- Increase its servicing fee net margin from 2% to 3% of the total value of inventory monetised – in effect improving its profit margin by 50%
- Speed up certain processes such as due diligence activities and client on-boarding processes – this will remove a number of bottlenecks.
Essentially the agreement to acquire a bank through its partners has strategically addressed a key challenge to gaining both commercial and operational efficiency quickly.
Commenting on the deal was Alessandro Zamboni, CEO of SYME who noted:
“This strategic Bank partnership is a significant addition to the Company’s existing funding initiatives. Our objective has always been to form partnerships that would enable us to exceed our funding targets, and this agreement achieves that at one stroke. Our business model is highly scalable, subject to access to capital, and to client companies. With this new Bank partnership and the other on-track initiatives, we now have capital and client companies. “
The share price of SYME soared by 60 percent following the news in early morning trading to 0.76p.