Key points:
- Supply@Me (SYME) shares surged 21.6% on the first IM contract completion.
- Investors cheered the completion of SYME’s first contract backed by VeChain.
- The company is working on other deals with potential clients.
The Supply@Me Capital PLC (LON: SYME) share price surged 21.6% after revealing that it had completed its inaugural inventory monetisation transaction. The deal is part of SYME’s partnership with the VeChain Foundation, announced on 28 July 2022.
The inaugural deal was signed with a counterparty (client company) that manufactures specialised industrial vehicles combined with electrical wiring and other electronic systems.
SYME’s stock (trading) company (StockCo) signed a three-year contract with the client company to implement the inventory monetisation (IM) transaction, with the initial value of the warehoused goods to be monetised being €1.6 million.
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Supply@Me Capital’s wholly owned subsidiary Supply@ME S.r.l. (Supply@ME Italy) entered into a contract with the client company as the originator and servicer. The operating agreement includes an annual inventory servicing fee and a one-time upfront origination fee.
Supply@ME Technologies S.r.l., entered into a contract with the client company as the IM intellectual property rights owner and the Platform provider. As a result, the subsidiary will charge an annual platform fee.
The client company will use the platform to upload the inventory to be monetised, including the minting of NFTs, while integrating and transferring the Enterprise-Resource-Planning data to allow StockCo to monitor and inspect the monetised inventory.
Investors cheered the announcement, which shows that there is demand for SYME’s inventory monetisation service and that companies are willing to pay for the same. In addition, the deal with VeChain Foundation has unfolded quite fast, setting excellent precedence for other IM contracts.
SYME’s StockCo will then mint NFTs that will be subscribed to by the VeChain Foundation. Every NFT represents multiple rights over the inventory and could allow the holders to generate monthly returns from the trading activities initiated by StockCo.
The NFT holders are the ultimate owners of the goods and can take possession of the physical goods if they meet certain conditions. Supply@Me Capital expects to generate fees worth 3% of the total value of the monetised goods by the end of the contract.
While 3% might not seem like much, the revenues generated by SYME will keep rising as the value of contracts signed by the company continue risings.
*This is not investment advice.
SYME share price chart.
The SYME share price surged 21.57% to trade at 0.1398p, rising from Friday’s closing price of 0.1150p.