Shares in Supply@ME Capital PLC (LSE:SYME) jumped as much as 17% in early trading after the fintech group unveiled plans to buy an inventory ownership business, marking a significant shift in its strategy and funding model.
Supply@ME Capital plc said it had agreed non-binding heads of terms with Société Financière Européenne to acquire a portfolio of inventory-holding companies that already use its inventory monetisation platform.
The proposed deal would see Supply@ME move beyond acting solely as a technology provider and begin deploying its own capital directly into inventory transactions.
Management said the move would align the group more closely with lenders by putting its own equity at risk alongside third-party funding.
Owning the inventory vehicles would also give Supply@ME a track record in holding and managing stock, something it believes is important for attracting institutional funding and, over time, credit ratings.
The company said direct ownership would improve control over risk, leverage and returns, allowing it to participate in profits currently earned at the inventory level.
It also expects tighter integration between the acquired business and its platform, improving data capture, monitoring and reporting across transactions.
The purchase price has yet to be agreed and will follow an independent valuation and due diligence.
Consideration is expected to include a mix of cash and shares, with a possible earn-out. Supply@ME said it is likely to raise new equity to fund the deal, strengthen liquidity ahead of its 2025 accounts and provide capital for future transactions.
The proposed acquisition is a related party transaction because chief executive Alessandro Zamboni has an indirect interest in the seller.
Any final deal would require approval from independent directors. Completion is targeted for the end of March 2026, though there is no certainty the transaction will proceed.
After an initial burst, the thinly traded stock settled at par for the day at 0.003p, valuing the business at a mini-microcap £1.18 million.