Supply@ME Capital PLC (LSE:SYME), the stock monetising fintech platform, said it has executed its first IM (inventory monetisation) transaction.
The company said the unnamed counterparty is a well-established business with a significant market presence in Italy, Africa and the US, while the client company is involved in the design and manufacture of industrial and specialised vehicles,
SYME added the agreement follows the establishment of a strategic alliance with VeChain to fund up to US$10mln of transactions using dedicated Non-Fungible Tokens (NFTs).
The total value of the initial warehoused goods to be monetised is approximately €1.6mln with the commercial contractual package having a duration of three years.
SYME said it expects average annual fees to equate to approximately 3% of the gross value of the inventory to be monetised.
IM is used by companies to access working capital by selling unsold or unused inventory, for example to a bank (the counterparty), as part of a scheme, with the inventory sold back to the company at a later date when needed.
In a statement, Alessandro Zamboni, SYME’s chief executive commented: “We are delighted to have completed our inaugural IM transaction, supporting our client company in this new phase of just-in-case inventory management strategies.
“We are well aware that, given the complexity of our model, it has taken more time than expected for the first IM transaction to be executed, but this will now help traditional inventory funders to understand, in detail, the features of the model and fully recognise its feasibility and viability.
“The involvement of VeChain, an organisation that is renowned in the sustainability and supply chain sector, will boost the confidence of traditional inventory funders in using blockchain solutions on real business cases.”
VeChain is a blockchain enterprise service provider focused on supply chain and sustainability and has developed the VeChainThor blockchain.