By Samuel Indyk
Investing.com – Supply@ME Capital announced on Wednesday that they have signed a share purchase agreement to acquire the entire share capital of Singapore’s TradeFlow Capital Management, a fintech-powered commodities trade enable focused on SMEs.
Financial Details
The consideration for the transaction is expected to be settled in two parts. Firstly, at the completion date – expected by the end of June - £4mln will be paid in cash and the company will issue 813mln new shares to the TradeFlow sellers, representing less than 3% of the Supply@ME’s issued share capital.
Secondly, earn-out payments covering the period from January 2021 to December 2023, made in cash or shares, based on TradeFlow achieving annual revenue targets commensurate with the business plan that underpins its valuation.
Supply@ME (LON:SYME) said they intend to fund the initial cash component from an investment of capital being finalised with a group of new institutional investors.
“By bringing TradeFlow into the Supply@ME stable, we will have an offering for the supply chain sector which surpasses anything available globally, with vast opportunities to create even more value for our investors,” said Supply@ME CEO Alessandro Zamboni.
TradeFlow’s co-founders, John Collis and Tom James, will join the board of Supply@ME upon completion of the deal.
“The combination of the expertise in TradeFlow Capital and Supply@ME, will broaden our shared geographic footprint and create a global digitised offering which will create a number of benefits from both a funding, technology and customer origination perspective,” James said.
At 10:57BST, shares in Supply@ME were trading higher by 6.5% at 0.426 pence per share.