REG - TruFin PLC TruFin PLC - Statement re Satago

TrufinAnnouncement

09/03/2022 07:00

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RNS Number : 1062E  TruFin PLC  09 March 2022

9 March 2021

TruFin plc

("TruFin" or the "Company")

 

Satago Financial Solutions Limited ("Satago") announces that its platform has
been selected by Lloyds Bank plc ("Lloyds Bank" or the "Bank") as the platform
of choice to support the provision of invoice factoring solutions to Lloyds
Bank customers. In addition, Lloyds Banking Group ("LBG") will make a
strategic investment of £5m in Satago.

 

TruFin is pleased to announce that following the conclusion of the commercial
pilot first announced on 11 December 2020, and a competitive tender process,
Lloyds Bank has confirmed its intention to enter into a commercial agreement
to license Satago's software platform for its Single Invoice Finance and whole
of book Invoice Factoring customers. Satago and Lloyds Bank have signed a
letter of intent and are working towards finalising a commercial agreement in
the coming months.

Satago's platform will introduce a new digitised proposition designed to help
the Bank further support UK businesses. Satago expects to be paid a recurring
fee for each customer of the Bank which utilises Satago's platform, as well as
one-off implementation fees, with the final terms of this landmark agreement
subject to commercial negotiation.

TruFin is also pleased to announce that, ahead of signing the commercial
agreement, Lloyds Banking Group has today completed an investment of £5
million of new equity capital in Satago, at a pre-money valuation of £20
million. All parties believe that the commercial agreement will be
transformational for Satago and has the potential to deliver significant
equity value uplift for Satago.

TruFin has agreed to vary the terms of an existing £3 million loan to Satago
so that it is convertible into equity capital in Satago at the same valuation
as the LBG investment or, if a further funding round takes place, the
valuation implied by the funding round. Assuming conversion based on the £20
million valuation (and assuming LBG does not subscribe for its pro rata
entitlement to shares), TruFin would hold approximately 68% of Satago (on a
fully diluted basis).

In addition, the Company is delighted to announce Ben Stephenson will be
appointed to the Board of Satago. Ben is Managing Director and Head of
Specialist Client Solutions at Lloyds Bank Commercial Banking and is
responsible for the teams who provide SMEs with Invoice Finance, Trade,
Payments, Asset Finance and Merchant Services solutions.  He sits on the
Executive Committee of the LBG's SME and Mid Corporates Business and is a
member of the UK Finance IF&ABL Product Board.

As Satago rolls out its best-in-class platform to a growing pipeline of
leading finance providers, the Board believes there are multiple value
accretive developments to follow.

Sinead McHale, Chief Executive Officer of Satago, commented:

"We are delighted to have been selected as the vendor of choice for the
provision of Single Invoice Finance and whole of book Invoice Factoring
services by Lloyds Bank. This announcement is the start of the next stage of
our relationship with Lloyds Bank and is testament to the innovative and
intelligent use of data and technology which makes our proposition best in
class. We are reinventing invoice finance as a mainstream product - making it
available to all UK businesses regardless of size or sector. We are extremely
proud to have secured such a landmark partner to help with this endeavour and
delighted to welcome them as an investor in the business.  Satago have a
significant pipeline of further opportunities allowing an ever-growing number
of SMEs in the UK to benefit from its award-winning products."

Ben Stephenson, Managing Director and Head of Specialist Client Solutions,
Lloyds Bank Commercial Banking, said:

"Extending our partnership with a leading Fintech like Satago represents a
truly exciting opportunity for LBG and our clients.  Combining Satago's
technology with LBG's reach and focus on Helping Britain Prosper has created a
market leading proposition that provides clients with much needed working
capital management and cash flow optimisation tools.  I am delighted and
proud that LBG and Satago are playing a leading role in modernising the way
working capital solutions are distributed to SMEs."

Gwynne Master, Managing Director, Working Capital, Lloyds Bank Commercial
Banking, said:

"Our partnership with Satago goes beyond that of a supplier and buyer
relationship. The equity stake we have taken in the business underscores our
commitment to deliver best-in-class, future-focused solutions for our UK
clients by partnering with a market leading provider with proven capability."

James van den Bergh, Chief Executive Officer of TruFin, said:

"We are very proud that Satago has been selected as the vendor of choice for
the provision of Single Invoice Finance and whole of book Invoice Factoring
services by Lloyds Bank. We welcome the Bank as a shareholder in Satago and
are excited about the value that Satago will create through this landmark
commercial and strategic partnership.  We continue to believe there is
meaningful value to be unlocked from our portfolio of companies and thank
shareholders for their ongoing support."

The information contained within this Announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No.596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. By the publication of this Announcement via a Regulatory
Information Service, this inside information is now considered to be in the
public domain. The person responsible for arranging for the release of this
Announcement on behalf of the Company is Annie Styler.

 

For further information, please contact:

 TruFin plc                                                        0203 743 1340

James van den Bergh, Chief Executive Officer
07779 229508

Kam Bansil, Investor Relations
 Liberum Capital Limited (Nominated Adviser and Corporate broker)  0203 100 2000
 Chris Clarke

Edward Thomas

TruFin plc is the holding company for an operating group of companies that are
niche lenders and early payment providers. TruFin Group combines the benefits
of both the traditional relationship banking model and developments in the
fintech sector. The Company was admitted to AIM in February 2018 and trades
under the ticker symbol: TRU. More information is available on the Company
website www.TruFin.com (http://www.TruFin.com)

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