Reply To: Supply@Me Capital

#4697
Nick Hargrave
Keymaster

We have continued to follow progress at SYME since the rather garbled trading update in Jan-23 caused us enough concern to remove the company from our watchlist. Indeed, upon the news that the TradeFlow directors had invoked their business buyback clause in Mar-23 (https://www.supplymecapital.com/wp-content/uploads/2023/04/Board-changes-and-TradeFlow-update-07_30_01-24-Mar-2023-SYME-News-article-_-London-Stock-Exchange.pdf), our concern seemed well placed as we felt the decision was driven more by dissatisfaction than the announced rationale of it being better for businesses given regulatory and commercial constraints. However, in recent weeks there has been something of a step change in positive news that it looks like they may finally have turned the corner with a viable, concept proven model – only green shoots to be sure, but green shoots with some backing from the Founder and Venus Capital

In order, the following has recently occurred:

Share acquisitions by the founder & CEO (via holding company TAG) – https://www.supplymecapital.com/wp-content/uploads/2023/04/Notification-of-Transaction-of-a-PCA-17_38_20-12-Apr-2023-SYME-News-article-_-London-Stock-Exchange.pdf

Additional financing from Venus Capital, the long-term funding partner, and a significant working capital funding commitment from the Founder & CEO (via holding company TAG) – https://www.supplymecapital.com/wp-content/uploads/2023/04/SYME-2022-Annual-Report-and-Accounts-and-Financing-280422.pdf

Move to the SETS trading platform from SETSqx, giving market makers less opportunity to control the share price and liquidity – https://www.supplymecapital.com/wp-content/uploads/2023/05/SYME-moves-to-SETS-trading-platform-12_00_02-02-May-2023-SYME-News-article-_-London-Stock-Exchange.pdf

The first commitment from traditional funding routes for an IM transaction – https://www.supplymecapital.com/wp-content/uploads/2023/05/Commitment-for-first-IM-from-traditional-funding-07_00_10-26-Apr-2023-SYME-News-article-_-London-Stock-Exchange.pdf

Execution of the first IM transaction from traditional routes – https://www.supplymecapital.com/wp-content/uploads/2023/05/Execution-of-first-IM-from-traditional-funding-07_00_03-05-May-2023-SYME-News-article-_-London-Stock-Exchange.pdf

On the basis of the above, we have reinstated the company back into our Ideas for Research and will monitor progress more closely once again, going back to our original thesis that the first successful traditionally funded IM will act as a catalyst for significant future IMs, particularly in an environment where banking credit is likely to become much tighter and opening up further opportunities for alternative finance providers.