Shares of Supply @ Me Capital PLC (LON: SYME) fell 5% after securing a new short-term loan facility worth up to Â£ 7million to replace the subscription agreement signed with Negma Group.
The inventory monetization firm said it has agreed to a new short-term loan facility with Mercator Capital Management Fund LP (âMercatorâ) following the signing of termsheets on September 2, 2021.
SYME was introduced to Mercator, a regulated Cayman fund, by ARC Group, an investment bank specializing in mid-market markets with a global presence on all continents. ARC Group connects its clients with financing solutions from institutional investors.
The short-term credit facility is a welcome relief for investors from the subscription agreement with the Negma group, as shareholders need not worry about being significantly diluted now.
SYME issued 840 million new shares on June 16, 2021 to Negma Group as part of the subscription agreement, considerably diluting the existing shareholders at the time.
The company still owes Negma Group Â£ 2,016,000 under the convertible loan agreement, which it will now settle in cash from the short-term loan facility.
The terms of the loan facility allow SYME to have an initial drawdown of Â£ 5million, with an additional Â£ 2million available over the next 60 days, subject to certain conditions.
SYME will issue warrants with a value of 20% of each tranche with a duration of 3 years from the date of issue and an exercise price of 130% of the value of the lowest closing VWAP during the last ten trading days.
âWe are delighted to finalize our agreement with Mercator Capital Management Fund. The funds will increase the flexibility of our balance sheet and ensure that we are well funded as we continue to expand our business, âsaid Alessandro Zamboni, CEO of Supply @ ME Capital. âWe are extremely grateful to the CRA for introducing us to a high quality funding partner. “
SYME share price.
SYME shares jumped 4.16% to trade at 0.26 pence, up from Tuesday’s closing price of 0.25 pence.
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