Key points:
- Supply@Me Capital shares rallied 19% on a new €1 million loan facility.
- The firm secured the loan facility from Banco BPM for its Italian subsidiary.
- Investors cheered the news, which created an excellent debt-equity ratio.
The Supply@Me Capital PLC (LON: SYME) share price rallied 19% higher after revealing that it had secured a €1 million loan facility from Banco BPM for its Italian subsidiary known as Supply@ME Technologies S.r.l.
Investors cheered the news given the favourable terms given to SYME by BMP, including six months of interest payments followed by 54 months of repayments that combine both principal and interest payments.
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The inventory monetisation company noted that the loan terms were highly favourable and that the move to secure the commercial loan was part of its broader Capital Enhancement Plan outlined in a press release on 27 April 2022.
SYME’s new loan will be repaid over five years and is not convertible like most previous financing arrangements. Today’s announcement comes three days after the inventory monetisation firm issued 9.58 billion shares to raise £4.365 million for its UK-listed entity.
The loan facility will help SYME build its credit profile and could form the basis for other commercial loans if the company consistently meets its loan obligations over the next five years. While SYME did not need the new loan per se, the loan will play a crucial role in ensuring that the firm has a solid mix of debt and equity funding.
Alessandro Zamboni, SYME’s CEO, said: “We are very pleased to secure this loan facility with Banco BPM, which follows the analysis of the Group’s business plan and product suite. This is a key development for the business which will help to lower the cost of capital for the Group.”
SYME shares have retraced a significant portion of their earlier gains at writing as sellers came into the market, pushing back the buyers. However, SYME shares are still trading above a crucial long-term support level, making them attractive to interested buyers.
*This is not investment advice.
SYME share price.
The Supply@Me Capital share price rallied 19.02% to trade at 0.0801p, rising from Wednesday’s closing price of 0.0673p.
