Supply@me Capital (LSE:SYME) — Annual General Meeting

0:01 Good morning. Good morning. This is the FLYME CAPITAL PLC Annual General Meeting. Throughout this recorded meeting, attendees will be in listen only mode. I'd now like to hand you over to the chairman, Albert Ganushin. Good morning to you, sir. Good morning, ladies and gentlemen. I would like to welcome you to the Annual General Meeting of SUPPLY at ME CAPITAL PLC, which has been convened by the notice of the Annual General Meeting dated 05/31/2023.

0:33 I am Albert Ganushen, and I shall be chairing this meeting, which I shall hereafter refer to as this AGM. Before we move on with the formal business of the AGM, I would like to introduce my colleagues from the board. To my right is the newest joiner on the board is Alexandra Gulligan. To my left is obviously the CEO of the company, Alexandra. Morning. And joining us online, I hope, David Bull and Enrique Camillaneri.

1:18 At this time as the time the convening of the AGM is 11AM, and this time has now passed. And as the quorum of the members is present, I would like to declare this AGM open. The business of this AGM is set out in the notice of the AGM, which with your agreement, I propose to take as a read. If anyone wishes to object, please raise your hand now.

1:56 Thank you. The board will now be pleased to deal with any questions arising from the annual report and other resolutions that are set out in the notice and on any other points shareholders or their duly appointed representatives may wish to raise. The board notes that several questions, excuse me, received in advance of this AGM have been previously addressed, as you know, in the investor presentation on the May 25. And the board does not propose to go through those again. Please, would the questioners identify themselves when you ask the question? And if you're not a shareholder, please state the name of the shareholder you are representing.

2:55 To be fair to everyone who wishes to speak, please restrict the number of questions you might wish to ask and be as brief as possible. I guess I now hand over to the investor meet representative to facilitate the asking of the questions. Thank you. If you have any questions, please just raise your hands, and I will give you the microphone. Thank you, sir. Good morning. Chris Mead, shareholder. Basically, I just wonder why none of the board, apart from Alessandro and some, share dealings, the rest of the board have ever bought, according to notifications, any shares in SUPPLY. Me, yet they're happy to take a salary each month, without any skin in the game. And that

3:47 to me seems wrong. Every other company I've invested in, an incoming chairman or board member would normally buy a stake in the company. And, you know, as a suffering shareholder who bought at a slightly higher price, I'm just wondering why this is sort of across the whole board of SUPPLY. Me, and individually, why you haven't bought shares.

4:14 Shall I answer this question? Yes, please. Thank you for the thank you for the question. It is a very fair question completely. I I agree with the genesis of the question. I guess there are I I don't really know, to be honest, what the real answer is. I would like to address the question head on. I can give you some background of the mitigating circumstances as to why I think it might have happened so far. That is not to promise you that it will happen tomorrow, but one of the issues that anyone on the board faces when considering buying shares in the company is actually the moments when you can do that are extremely limited.

5:08 We are in the city. I know. Yeah. But I would say, particularly, in our company where we kind of almost effectively always in the restricted period because if something might happen tomorrow, you know, the inside information. So I think this is the greatest, you know, greatest issue from my point of view that I don't want to go into what I'm seeing this on. Just perhaps trust me that this this has been we considered doing this a few times, actually, at different members of the board and faced with this issue that, you know, you can't do it now. You have to wait and quite often

5:53 a considerable amount of time. So there are technical complications. That is not to say, answering your question head on, that if one was wanted to pull out all the stops and find, you know, a handful of days in a year that you can do it, you cannot do it. You can, of course, do it, but it's not easy in our situation. I think this is a significant mitigating factor, honestly, in my opinion. But that said, I would like to obviously see the board, you know, make an investment in the company because the signaling around that is very important. So I think we understand that. We'd like to address it and hope we'll be at some point in the future in the position to address it, recognizing that we have not yet done it.

6:51 I mean, I appreciate the honest answer. Although looking looking at other companies, it's not the case, and and they have RNSs possibly more regularly than we do. And and I do understand there's things happening, but there's things happening in every company, signing contracts, new contracts happening, discussions ongoing, yet directors in those companies are allowed to, but the SUPPLY at ME one seems to be the only one where you we've hidden behind this now for two

7:19 and a half years. And I'm sure within the two and a half years, there have been some some time scales. And, I mean, you know, that that it's pretty lenient, you know, apart from the, you know, two months before the report and accounts, whatever it is, or ninety days or thirty days. I forget now. But, you know, there are you know, it is set down, and I the contracts are always happening in every company. Would be selling and buying contracts, but the directors still buy and sell shares. They don't wait for the next contract, the contract after that and the contract after that, and the contract after that. So I I thank you for your honest answer, but I'm not sure it's totally true that it's such a small window. And every time you try and do it, the window's closed or or whatever, because, you know, I have worked in the city, and I I know it is not that difficult to find those periods. And and the contract thing is is a little bit of a smokescreen because every other company has ongoing discussions with suppliers, funders, or whatever else we're discussing with.

8:22 Yeah. Yeah. I'd I'd I don't propose to get into a lengthy exchange on this, but, you know, you know, you would recognize as a shareholder that the amount of news material contracts that we have done is not that huge. And so it's not a GLEXA situation where thousands of contracts are coming through. If that was the case in our position, I would agree with you entirely. But I'll just make a point. We are you know, we continue to be a company at an inflection point where a lot of the information that we have access to is genuinely inside our information, in my opinion. Okay. As a shareholder, I'd just like Point is noted, understood and acknowledged. Questions from the room?

9:13 Matthew Martin, shareholder. I guess, what I'm struggling with at the minute is to actually put a valuation on the company. I know that's standard for this type of company in this industry. However, when I invested best part of 500,000 two years ago, I had captive bank. I had RNSs with quantums of potential IMs. So I could I could quite easily put a valuation and determine that the company was undervalued. Since the last revenue guidance, we've got nothing. We've got two one million IMs. I would say almost radio silence where this kind of, you know, silver bullet of white label, but I don't even know if it's 2,000,000,200,000,000.

9:58 So so I'm kind of locked in with a significant loss. I'll have no idea if the company is even worth the shares the share price today because the level of information that you guys give me on everyone is pitiful. Maybe Brian answer the Okay. Thank you. Thank you, mate. I think that we start this year with the business update that maybe was weighted from the investors, and we tried to map our agendas. I try also to explain to the shareholders in these months. So actually, in a perspective of an investor, as a shareholder, I think that the agenda is clear.

10:46 It's in the January business update. And what we are doing now, maybe with the expectation of time that is always not always in our control, is to deliver this agenda. And I think, Matthew, that respect to two years ago, one year ago, the situation in terms also of projections of what company, the group can do is totally different. So technically, we made the first I'm in Italy with the traditional funding. We announced The UK funding. We are in line with The UK execution as the market knows. In the business update, said that this EUR 10,000,000, the

11:29 first agreement or first potential transaction with Tier one bank as we said in the presentation of May 25, unfortunately, the technology device, the hardware didn't work. And so we are not able to pass transfer the enthusiasm and the direction that we are following. And and I think that as we are doing also in the in the seat, in the company with the partners is to try to to explain that really delivering something the company can scale, you know, because we prove UK, we prove Italy, we prove or we will prove the white label also the the opportunity to work with the tier one bank.

12:16 And as you know, if you as investor, you try to project something, say, okay, the financial services are a market of followers. So if we announce a good alliance with a a bank, for sure, other banks will knock the door saying, I want to do the same. Maybe as we are saying these days from the commercial banks, maybe also investment banks can start to work together because they see a model that actually is working. And so technically, we hope that we'll be positioned this year also to maybe put some numbers and help also, obviously, the market participants, the shareholders, all our partners to see our trajectory and continue to support the company because we are in crucial moment, guys, and we need to be supported because the company now is delivering, and we need really now support of all shareholders, partners to go in the direction that we are working. We will be working three years basically right now.

13:19 So this is my view, Matthew. Thanks, Alessandro. I guess given cash position, my concern is by having no revenue guidance imminently, we are right down the barrel of another, raise. And, historically, the raises have been at a dis you know, at disgracefully low price relative to what I paid. So I just need some kind of confidence soon from the company that we're not gonna run out of money and need another fundraise. I I'm fully confident in the company. I've got total I I I get where it's going, and I get that the things take time with banks. But I need something, and we need something that shareholders that makes us realize, okay. This is taking time, but we're not about to just go go to the markets or, I was gonna say, the market Venus to get additional funds because we're not gonna be able to pay everyone's salaries. That's my last point.

14:17 I think that basically, we are in June, and we recently approved an annual report with the facilities that the funding facilities that we announced, right? So in this moment, and you know that the company has the obligation to disclose something if something that we approved in the past changed, right? So actually, now the company is in the same position of the what we announced in the annual report, and we we we don't see any you know, we we don't see what you are, you know, now thinking that will will happen. Additionally, as you appreciated, like happened last year, starting to work with bank, open the doors also to commercial loans that actually is something that Banco do PM last year provided us.

15:09 The market is seeing what we are doing, and there are a lot of opportunities to work also in a normal manner, ordinary in a course of business with the normal loans. And so I think that this is the direction that we approved also in the last annual report.

15:27 And we are now we do not we do need to target our, you know, goals, business goals that when the board approved the annual report, as you know, there is a working capital assessment, going concern analysis. And our focus really is not on revenue. It's not to see how we can raise capital. I find another provider. It's we need revenue, and we need to generate cash from revenue, not from other type of facility. This is a key message that is important that you can appreciate today, right? Hi there. My name is Sasha Okoblovich, shareholder.

16:14 You know, I was here last year at the AGM last year, and I mentioned that I mean, what I do is I buy companies anyway, and there's one company that's a multimillion revenue PC manufacturer. And I was assured by your colleagues that we will get a call to talk about a potential I'm three hundred and sixty five days later. I'm still waiting for that call. And I also asked you

16:46 by the way, I appreciate the this access that we do get and I know you're very generous with it, Alessandro. So, you know, really grateful and thankful for that. What are you actually doing in terms of the the outreach to their potential market? I mean, just last week, I was at the NEC for the NACFP Expo, is National Association of Commercial Finance Brokers. Over 4,000 people attended. And I was just generally chatting, was chatting to the the director and the chairman of that organization. They've got, I think about, you know, a few thousand members and if you think of all the businesses that those members look after, nobody, not one single person had heard of SUPPLY ME CAPITAL. So what are you actually doing in the marketplace and the outreach? Because anything that we see online about oh, you know, look at this and, you know, we go on LSE, I'm sure, you know, we're all under our kind of pseudonyms or whatnot And, you know, somebody gets excited because some you really kind of niche website puts up a a press release which it's just not that ChatGPT could knock out 50 of those in thirty seconds. So what you actually doing in terms of the marketing and what are you doing in the following on from an earlier question, but it's still related. What you actually doing in terms of speaking with tier one banks for your white label proposition?

18:08 I I know understand commercial confidentiality even this room should be a locked room sort of thing and nothing gets out. But in terms of what quality and what types of banks and financial institutions are you actually talking to and can you give us an indication of how advanced? So I suppose the two questions in summary are what you're doing on the PR marketing side, sales side? And then on the other side, who are you actually speaking to for the white label proposition? Thank you. Thank you. Thank you. Very clear questions, right?

18:43 I think that we need now to deploy a model that since we are paid to generate revenue, okay? We need to find the right way to speed up the generation of revenue. And our view now is that in order to reduce the time to delivery of these transactions or to the opportunity to deliver an I'm is important to have, you know, funders that also can originate clients. Right?

19:16 So the white label that actually is a self funding mode, just to clarify, because we try also to clarify in the Q and A, it's not white label as a technology. But what we are doing now is to work with these players in order to allow to deliver inventory monetizations, leveraging the client base of the bank, right? So in this manner, if you can follow this trajectory, we are now proving that in Italy and soon in UK, the model can work. Right? Then we do these two technically tools, we can and we are doing, you know, since one year, actually, the activities in Italy with the local banks that are Tier one banks, so are one of the 100 systemics banks under the European Central Bank regulation, just to give you an idea of type of balance sheet that can banks these banks can have. Right?

20:18 And this is for Italy, and we want to do the same of UK. Obviously, the as you know, financial services always said, let please let me see if you are doing something also small, you know, initially to, you know, knock and start the the the the this new model. And then I can work because I also be facilitated internally as a bank to show to my compliance officer, risk management, you know, that regulation are asking new product procedures for banks, you know, since two years ago. This is basically a new framework. You know?

20:54 When a bank needs to launch launch a new product, start basically official procedures, and they have to inform also the regulators in some cases. Right? Because then they need to do a business business plan and so on and so forth. So, actually, what we are doing is deliver this this basically, this not proof of concept because our real transaction. So I don't like the term proof of concept, to to be honest, when I saw someone say that you did the the proof of concept. We did the we help real economy. There are now two and hopefully soon three companies that we are monetizing inventory, and we are helping real economy. Proof of concept is something more, in my opinion, more that from garage of the jobs. This is something that we are delivering, right? So this is the first one. Then after this, with the banks, I can confirm with these banks. It's totally different now discussing because the question is, can I see the term sheet of the note that you issued? Can I see the how are the condition, how works the model? And the time to reply to these banks now is totally different because last year, we tried to say, yes, we were trying. Maybe if you simulate, if you do this forecast, now we have live transactions, and we say, okay, this is the what we are doing. And you will see the speed of delivery, in my opinion, in the next months, how we can speed up the alliances with banks, in my opinion.

22:20 Regarding the marketing, it's one of the topic in the table of the Board of Directors, I can see I can say, because I think that it's important regardless the opportunity to work with

22:32 banks or to do transaction to be our presence needs to be in every table or online physically. Obviously, there is a Amy, in room, it's important to have you have a budget. We need to invest the money, use the money when there is a return of investment very high in this moment. And so we prefer to invest the money in order to speed up maybe an alliance with the funder and then invest the money in the future also for maybe more wider marketing or PR because now we need really to manage our pipeline. Right? The problem or the opportunity now is not to find new clients, is to have fuel to deliver the pipeline.

23:21 Right? And so this is our priority now. And indirectly, with the revenue, with what we'll do, we'll have maybe a budget to improve also the more general marketing approach. But in these days, the Board is discussing to improve as usual the marketing activities in general using our existing budget. To confirm, you're not actually doing any active marketing right now? Actually, to be very honest, I think that we are lucky because we continue to to get the request of inventory monetization from corporates naturally from our network of originators.

24:08 Recently, before Roadmee last week, another before, Roadmee to introduce new clients to us, UK clients. So actually, it's not a big deal for us now fund every week, every month new clients. So maybe it's not a perception of the shareholders. But in reality, the number of originators that we have in Italy and also in UK, the ecosystem that we have now is continuing to generate opportunity. Differently, if you're saying it's important to have a market positioning regardless the fact that to have to onboard a new client or a new prospect, to have a market positioning in in these events that you are saying. And this is a more a brand market positioning that I do agree that maybe regardless the fact to to have another client, it's important to see the SUPPLY ME in these events, in these tables.

25:08 And we'll do we'll do for sure something in the future using our budget of marketing.

25:16 Other questions in the room?

25:21 Yeah. This is non football related. Matthew Martin again, shareholder. Would it be fair to say that, if there wasn't for if there wasn't a white label opportunity, SUPPLY at me would be really struggling, right now? Because we've kind of almost transitioned from the traditional funder slash captive bank. And now it seems like we're basically, everything's on the line for white label. So no white label equals SUPPLY. Me would be in a bad place right now. That'd be fair? No no iPhone and Apple will maybe default. You're right? No. Basically, the point is not is not a random situation.

26:06 It's a strategy of the company to study the market, understanding the time to to deliver of each funding routes. Know last year that to speed up the first I'm we leveraged the crypto market, basically, because we had opportunity not to raise funds through tokens, but to have opportunity to help the first company with our original model regardless to use an NFT or some other, you know, as a funding route. So is it I think that was a clever strategy of the board to say, firstly, last year, find the more the faster router to do the first I'm Secondly, now find the faster router to scale.

26:53 Third, a faster route to scale originally, maybe with the multi jurisdictions because in a May 25 disaster of presentation that we made, Let me do I'm joking a bit. But, actually, the the the the was a was a miss a great misunderstanding. You know? The white label up and running multiple regions '24, you remember, because I received that in thousands of messages in ten minutes, the worldwide record of messages. Okay? So actually but this is the point. The the board of directors are setting strategy long term and short term because the focus are revenue, cash position, and obviously, the improvement of our unique product, right, as a platform.

27:41 I can maybe add just a little bit of this.

27:48 I don't think it's right what, you know, the the hypothesis you put forward. But we certainly you know, within the board and the strategy meetings that we've had, obviously, since certainly since the year I joined you know, I've been here, and Alexander was was talking about that. I think the focus has been because we understand that the the company has significant promise and has a unique product, but it has to work and has to be brought to market. Now we thought about what are the drivers behind effectively the delays in the adoption of the company's product. And one of those drivers is if in the CAPITAL model, we basically need to build a financial services brand, financing brand.

28:43 Yeah. And let's be honest about this. It's not corporate customers. It's, you know, hoovering them up, you know, who have plenty of corporate customers. It's the financing financial services brand. And for those of you who, you know, have the Citi experience, they understand this actually isn't you know, this does take time because it's a function of track record, trust, and perception. And that is something that could happen quickly, but it could also take time because this is a little bit how you know, a lot of factors outside of our control, forgive me. So with this in mind, the white label approach, seems to bring us to the adoption of the product much quicker and probably help both on either side.

29:39 You must understand. Because if they approach with the white label, well, we the platform and other people have both the customer and the money, why would they not use our platform if it's so good after all? That is a reasonable question we ask in the board. This I I ask this question. And for this reason, yeah, I think it is important for us. It's not if it doesn't work, then everything goes to pieces, but I think it can accelerate significantly our development because, you know, frankly, if if if a big institution takes on our platform, without a shadow of doubt, this is a significant vote and validation of the credibility of the platform for everyone, for the captive as well, alright, and for other white label opportunities.

30:30 So it is important strategically, no question about it, in in validating our product in speeding up the adoption of the product. But if it doesn't happen, it doesn't kill the concept. It doesn't, you know, destroy the journey that we're on, but I think it is important catalyst for our development. Hope this is clear. Thank you. Last question, but I'll probably put three in. So firstly, you you funding, that's always been my big issue and why I invested because of the captive bank 4,000,000,000 opportunity of funding in 2020. Still waiting on that one. So and and, also, I don't think as a shareholder, I've been really updated on progress of the captive bank, the the just the odd snippet in the odd half yearly or annual report saying it's still bubbling, but it seems to have bubbled for an awful long time. And I wonder if it's evaporated, in which case we need to be be told it has, you know, not happening or or some more solid updates on it. Because at the end of the day, you you SUPPLY at me talks about updating the market.

31:42 Actually, we're the shareholders and we're the owners of the company, and that you should be updating us rather than the market because, you know, I know the two things are are similar, but we do own the company and we do have, you know, a right to understand what's going on. I know some of it has to be kept secret. Of course, it does. But other bits, like the CAPITAL PLC, you know, I mean, that has just been going on and on and on. And the fintech banks sort came and went and and one or two other bits and pieces. So I suppose that's my first plea that you actually keep us shareholders a little bit more updated on what's happening. The second thing is the the pipeline, the 300,000,000. These guys have got an awful lot of patience. You know? They've been twenty twenty to twenty twenty three and a half, and they're still sitting there in the pipeline.

32:30 And we've done a whole, you know, one and a half, three I think it's 4,500,000 compared to 300,000,000 pipeline. Is that a real figure? Because I would be getting a little bit bored and questioning the whole opportunity thing by just sitting in a pipeline for three years waiting for my my, my stock to be done. And then the last one is trade flow. When will we hear what is happening with trade flow? Just a date. And then a simple question, which I'm sure you can't answer, but will it be cash flow positive, neutral, or negative to SYME, the trade flow split? Thank you. Question you raised? Three. Okay. Four. Four. Four. The the four, we can't reply. I just anticipate.

33:18 So no. No. Good questions, Chris, as usual. The the CAPITAL bank, the fintech bank, I can add also such, if you want, so the the insurance company, the the agency in Italy. You you I think that the the shareholder has to see this as a needs of of our business, as we were saying, to work closely with the bank. Right? So I reply you with a question or, you know, a a a and say something regarding what will happen if one of the these banks were we are now working, we'll ask us to work very close on exclusivity basis for specific maybe supply chain. Right? Actually, if this will happen, technically, we are delivering the the model of a captive bank, you know, working together with the bank that actually is our, basically, partner to deliver something in a specific sector. Because captive bank, to be clear, you remember, was not that SUPPLY ME were bought by a bank or SUPPLY ME bought a bank. It was an agreement where an external funders, both a bank, totally wholly or partially, in order to allow SUPPLY ME to have a captive funding available to deliver basically IMs to pipeline existing

34:48 or to eligible clients, right? This is this was the strategy with Quadrigio, basically. But the same framework also because, you know, I remember, you know, the the announcement was September after my birthday, twenty one of twenty twenty, September 21 and December 2020 when we named Quadrivio. These guys are all are in the market, right? Basically, our equity private equity investors and banks technically are there are some banks also with private equity funds behind, right? So what we are saying is that our strategy to work together with local banks is actually a way to deliver basically this framework. Okay? And and let's see what will happen if there are banks that we will will want to work together with SUPPLY ME more closely.

35:38 On the other hand, as we said in, I think, the last Q and A or in the past, the Avanga Group and Quadrivo always are looking for opportunities to help SUPPLYME working with the banks that can work closely with SUPPLYME, right? But to find a bank is not easy because there are a lot of banks with NPL portfolio to clean up. There are complex situation. The regulators is also asking more credit restrictions. So the environment obviously changed, but the need to work closely with the bank is basically the strategy that now we are delivering. Treflow.

36:24 This is the second. Right? Treflow Treflow. Announced the, you know, the what we are doing with Treflow and Tom and and John. And I think that the together, we are working to find the right solution in order to, again, update the market of what we want to do together or maybe in other configuration as we said in the RNS that we we published. There is also a technical legal due date as, you know, you know, in the in the agreements and in the also in the, you know, relationship. And we are, you know, in line with this due date, you know, to finalize, this basically this reconfiguration.

37:11 So we will inform the market and do course in line with this technical legal due date. The third one, I didn't remember because I'm passionate of banking. Impact of trade flow, but I think the answer is Pipeline was the other Pipeline. Pipeline. The pipeline. Yeah. No. Pipeline, I think that after three years where we improved a lot of the governance also thanks to the new chair, new board of directors, AME, I think, Chris, I don't want to be rude. It's unacceptable to get an answer question, say, are true or untrue, the numbers. Right? The numbers, by definition, are true. You know? Because there are auditors, there are procedures. So it's I'm I'm just saying in a, you know, in genuine reply that all what we are saying, doing is true. You know? So and the pipeline is interesting, your view, say, the patient of the clients.

38:10 Actually, you can image that clients during COVID was funded by the COVID facilities. And so they was able were able, the clients, to continue to support their working capital needs through the funding. This is this creates an opportunity because the COVID facilities was basically adopting for all the corporates in Italy, in U. K. So basically, they pumped the debt of the clients. And now the clients has to repay the debt, all the covenant, all the problems regarding now clients with the leverage that the banks can manage. And these clients are more than happy to wait because they wanted to now to derisk to deleverage their position. And these are example, right, where we can work.

38:58 Some clients maybe asked us to, you know, come back when we are able to deliver. What we are saying in a business of the next of January, I think that I want to pick up a point that is interesting in your view, where the company said that we are starting to see or to work on larger tickets. Right? Because to work with banks, the banks are asking us larger tickets. Right? So what we are now discussing with our pipeline is to increase the average ticket of each deal because our banks are asking minimum tickets that are not 1,800,000, but basically times different. Right? So this is what I think is important in understanding of the pipeline.

39:47 And also, as we are saying recently, to scale, we will need maybe more less number of transactions, right, initially because the average ticket will be, you know, higher. And this is interesting in your perspective, in our perspective to scale, generate revenue, achieve as soon as possible the breakeven, generate free cash flow. This is basically our technically direction, right? One final question in the room. It's just it's actually a couple of it, shareholder. Just picking up on a note that you said earlier, kind of, I suppose in relation to what I asked. You what you're saying is you've it's not a question of building up a client base of people who require funding.

40:38 It's more the other side of the coin, the funders. So with, you know, the the the way that the economy is and the high inflation, etcetera, what is the attraction? What is the offering that you're you are giving potential funders to make them think, you know what? Yeah. We'll we'll chop, you know, 10 or 20 mil at that just to have a go at it to see how it pans out. What what active conversations are you having with funders around that? I our underlying our product is an interesting opportunity of investment for these funders for because now also discussing with commercial banks and maybe also banks, they they wanted to offer a new product with their clients. And so we can technically easier, you know, to to to explain the, you know, the look through the lose the the the reason why of this product for the doing doing So lot that. Facility.

41:48 If you are have asking other type of investors, like the investors that invested in this note, technically, the underlying of SUPPLY ME is interesting, the inventory monetization, because firstly, it's a tool to hedge the inflection. Because if the price will go up, technically, our model is indexed, not to this price because of the rolling activity to buy and sell are aligned. And so we can ensure also an alignment of the interest rate in our notes as it happened in our in these recent transactions. Secondly, it's secured and the holy grail, maybe as we are saying, PNP or whatever, technically are improving the security package of the investment.

42:39 You know? And so this is interesting in the perspective also of typical debt funds that want to invest into a bond. The third one is the ESG goal because helping supply chain, we are basically improving the operational resilience of the supply chain. That is one of the ESG goals under the framework of ESG assessment. Right? So just these three basically factors or drivers are helping a lot to pitch an investment opportunity to not commercial banks that is different as a perspective, but to debt investors that are looking for asset classes, good return, investment edge to the inflection and so on and so forth. This is, in my opinion, the the main points to pitch and that I think that are supporting a lot. And just maybe maybe just One line. You know, if you ask me, and I come from the wholesale effect to the background, right, some financial markets, what is the value proposition of the company?

43:40 And I think if it's helpful, I can give my two liner. It's equity release of the capital tied into the stocks or inventories of the company. And that equity release is effectively not possible to achieve through traditional bank loans because of lack of control over collateral, fraud, and all sorts of things. What this our platform, allows, we believe, is that equity release. Now a bank can get access to that equity release by lending against this behind our platform effectively through a note, or a nonbank funder can do that. So that's what it allows. So, therefore, the sort of returns we are looking to provide to funders are equity style returns.

44:32 When the notes are being printed into the SPVs that are financing those monetizations, they're equity style returns. And that is attractive for sure. It's attractive to a bank. It's attractive to a non bank financing institution. So it's an equity release. What's just Yeah. The kind of I suppose the crooks of the question is, are you in active conversations with, you know, investors and finance houses? Of course. I mean, it would be remiss on us not to do that. So we kinda tried to explain before, and I'm happy to reiterate this very clearly to you. And we as a board, in in I speak as independent board directors, to hold the management team very tightly accountable as to what we are doing in terms of actually addressing this specific, you know, development objective from the company's point of view. And that is we want to have partners on the captive side who are trying the transactions, coming back, participating more, and upping their commitment.

45:42 So we want to build a stable of people who will finance the transactions that we originate. That is what you see in the pipeline. That is our own originated transactions. But we also want people to come with our own transactions because there will be people who will second guess us and will say, well, have these guys have chosen all the companies that nobody wants to finance? And what do they know of supplying the capital? You know? Small little company. We are a big bank x, y, and zed, and we know what we wanna do. We just can't do it because otherwise, you know, they have to have access to our platform and technology. In which case, I would say to others, I'm happy to put our hands up and say, we'll come with your client and with your capital and and do it because we can deliver it. Hope that makes sense.

46:33 One more question, I think, from the room, sir. One last question. Yes. Hi. Paul Cook, shareholder. May I go I did have a question, but I'd like to first go back to the Tradeflow Capital situation. Clearly, these things are never easy, either joining or leaving. One might have a hypothesis, given that you've been discussing this for nine months, that if it was easy, it would already be sorted. And there is, an end date, so, which was alluded to in the answer to Chris. It's just how hard is that end date? And if we go past that end date, are we going to litigation? The initial answer. Yeah. Yeah. Yeah. Please. So because yeah. I I I will take the answer because give you the answer because Alessandro has obviously had a long standing relationship with the guys, and I I think I hope I can take a slightly more detached approach, which might be helpful for you.

47:36 Look. You know from the announcement, it's clear that we are trying to separate for what we hope are strategic reasons, and we try to make it very clear. We would like to separate, you know, via the friendly agreement, and we believe we will this is what we will deliver as a board. Okay? Notwithstanding that, the other party has a right to separate from us. Actually, also on the terms to be agreed, but when somebody says I actually have a right to run away from you, it's, you know, slightly more, you know, it's a it's a separation with a little bit more tension, as you would appreciate, than otherwise would have been.

48:33 So I believe we will separate. As we said, we have to announce the terms and conditions and, you know, in due course, we'll do that. And we are working on still on option a, whereas option b also does exist. So it's gonna be either option a or option b, but, actually, in reality, there's gonna have to be a separation either way. So it's kind of it's almost immaterial. Right? So in the round of things as to what how this would happen. Is is the date a hard date or a soft date? The date the date simply is a date when the other party has certain control over the timetable.

49:28 And I think it would be fair to say that both parties want to separate. So if one if the other party wants also wants to separate, it is their power to use that trigger, which is why it is kind of a stop date, kind of a stop date. Not really in technical terms, but practically, it is a stop date. So if that's clear. Thank thank you for that. My question is just which I'd like to ask is there are some well known personalities in social media who and we don't need to discuss who they are or their credibility but there is a narrative that there has been significant hesitate to find the right word. There's been significant activity in terms of share trading over the over the period.

50:27 So the question the question is, does the company monitor the trading of its shares? That's the first question. Do you monitor how your shares are being traded? And okay. So the second question is are you aware of any intriguing patterns that seem to repeat? But if you don't monitor it, the answer to the second question is no. Okay. Okay. So so I will just I will try to give a quick answer. Look. We, as a board, we're responsible for the company, the compliance, the of doing things correctly, disclosing everything correctly, delivering strong governance so you can trust us. You can trust us, and other people can trust us. Right? Yeah.

51:16 So but the look. The trading platform where you see is responsible for trading. So this question should be addressed to LSE. I used to work for big stock exchanges. That is the question for LSE. So you as you know, we moved from the quotation driven system, which is based on market maker quotes to an electronic order book sets. One of the reasons, that I very much supported this move is this is an equalizer in some ways. So it's an electronic order book. Everyone has to put their orders through, and there's visibility on the order book, actually, if you wanted to see it. I'm not interested in it as a company, as supply supply me capital. But if anyone is interested in it, they should be able to see the through the electronic order book. Do I believe it is helpful in a sense, you know, to to make some of this speculation go away? You know? Probably.

52:17 But if somebody wants to talk negatively about you without any substance, then generating more substance does not necessarily make them go away. You know? If you if you think it's black and it's white but it is in fact white, you will continue saying it's black no matter what I, you know, what evidence I produce. That makes sense. Okay. So thank you. I think we we'd just like to move on with the the with the AGM if if we may. So thank you. This kinda concludes our live q and a session. So I now propose that we move to ordinary and a special business that is set out in the notice of this AGM.

53:02 And I to put all the resolutions to be moved today to a vote by Paul. So I I hereby officially demand all on behalf of myself as a chair in accordance with the article 61 of the company's articles of association. Votes cast for the purpose of a poll include votes cast by proxies. It is my intention as the holder of the number of proxies, in respect of which no direction had been given, to vote the shares represented by such proxies in favor of each of the resolutions. Votes by proxy, discretionary votes, and abstentions are shown on the screen behind me, hopefully, as they are for all the resolutions.

54:01 A poll has been validly demanded, and accordingly, I ask our representative from Neville Registrars, hello, to conduct the poll and act as scrutineers. Resolutions one to nine, inclusive, are proposed as ordinary resolutions and require simple majority to be passed. Resolutions ten and eleven are proposed as special resolutions, which require to be passed by the majority of 75% to vote in favor of these resolutions. I now put the resolutions to the AGM and would like to ask those of you voting by polling paper, ensure that your names and the names of the members you are representing are clearly shown on the polling paper, which will be handed to you and indicate by signing the appropriate box whether you vote for or or against the respective resolutions.

55:10 Please then hand your polling paper to the representative from the scrutineers who will then collect them. In case of joint holders, with members or proxies representing members, please write the names of joint other joint holders on the polling paper. I should add that any shareholders present who have submitted proxies by post and who do not wish to alter their votes need not vote in person. Indeed, it will make the votes count easier and simpler if those shareholders who've already submitted proxies refrain from voting by using the polling paper. Will those shareholders requiring polling papers hold up their hands, please?

56:36 Do do we have resolutions on the screen? Can we move, forward the slides a little bit? Yeah. Yeah. The resolutions are on the screen.

58:41 Yeah. So all of those one to nine are ordinary. So I switched it off. But Of course. Of course. It's a matter of

1:00:19 public records. Plea. Please carry on. Please carry on, mister chairman. Thank you. Okay. I think given the the time constraints now that we've, you know, we're now up against the 12:00 for the general meeting, the the for the I propose the results of the poll will be collected and counted, and the poll will be the results will be published by the RNS after the AGM closes.

1:01:26 So with this, ladies and gentlemen, the business of the AGM is now finished. But in concluding, I would like to thank you all for your continued support of the company. And there's and there's no further business, and I declare this AGM closed. Thank you very much for attending. Thank you for updating attendees today. On behalf of the board of supply at ME CAPITAL, we'd like to thank you for attending today's annual general meeting, and good afternoon to you all.