Supply@Me Capital PLC (LON: SYME) share price plunged 20% after calling an urgent general meeting to discuss a “serious loss of capital” under the Companies Act 2006, spooking investors who thought something was wrong with the company.
However, a closer look at the RNS announcements reveals that the serious loss of capital is not related to the inventory monetisation company’s current operations but to its predecessor Imaginatik plc and occurred in the 2014 financial year.
SYME revealed that the company’s former directors did not call such a meeting as required by law and that it was the current board of directors responsibility to hold the meeting.
Investors were relieved to hear that nothing drastic had happened to the company since its last update and that it was still on track to achieve the various milestones outlined in its last press release.
SYME shares had recouped most of their losses at writing as investors breathed a sigh of relief. Furthermore, the company said that the only issue to be discussed at the meeting would be the serious capital loss stipulated under the Act.
The fintech company further noted that its current share capital and net assets are derived from the corporate transactions and operational results attained before the reverse merger with Supply@Me Capital in March 2020, enabling the company to list on the London Stock Exchange.
The meeting is scheduled for 30 December 2021, and many investors will be awaiting its outcome as they usher in the new year.
Investors still have to contend with a lower financial performance from SYME after the company postponed the recognition of a significant chunk of this year’s expected revenues to next year.
However, I remain cautiously optimistic about SYME as it rolls out its services next year despite the many challenges the inventory monetisation company faced this year.
*This is not investment advice. Always do your due diligence before making investment decisions.
Supply@Me share price.
Supply@Me Capital share price plunged 20% to trade at 0.12p, falling from Monday’s closing price of 0.15p.
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