Tungsten Corporation PLC Partnership with Orbian Corporation (5899W)
12 December 2019 - 6:01PM
UK Regulatory
TIDMTUNG
RNS Number : 5899W
Tungsten Corporation PLC
12 December 2019
TUNGSTEN CORPORATION PLC
("Tungsten" or the "Company")
12 December 2019
New partnership agreement with Orbian and wind-down and closure
of Tungsten Network Finance operations
Tungsten Corporation plc, the global business transaction
network, is pleased to announce that it has entered into a new
partnership agreement (the "Partnership Agreement") with Orbian
Corporation, the global leading provider of supply chain finance
for major companies and their entire supply chains around the
world. Orbian has been in business for over 20 years, and its
annual revenues from supply chain finance exceed $100 million.
The Partnership Agreement has been concluded following a review
of the Tungsten Network Finance ("TNF") business, undertaken by the
Tungsten Board as part of its Operating Review, and builds upon the
existing memorandum of understanding which has been in place
between Tungsten and Orbian since 2016.
Tungsten will be integrating the Tungsten Network with Orbian's
technology and financing platform.
Orbian was chosen after a worldwide tender process of suitable
partners, undertaken by our appointed specialist M&A
advisers.
Under the Partnership Agreement, Tungsten and Orbian will work
together on an exclusive basis to offer supply chain finance and
other trade finance solutions to Tungsten customers and other
agreed targets. The Partnership Agreement will run for an initial
term of five years, with a revenue share payable to Tungsten in
respect of trade finance advanced pursuant to the partnership.
Commenting on the Partnership Agreement, Andrew Lemonofides,
Tungsten CEO said:
"The Board have great expectations that this new partnership
with a market leading supply chain finance and trade finance
operator will broaden our offering to our customers and generate
significant revenues in years to come. The combination of Orbian's
state-of-the-art supply chain finance technology platform and the
innovative funding structures they offer will provide a compelling
offering for our customers. This partnership leaves Tungsten to
focus on growing and investing in its core activities."
Commenting on the Partnership Agreement, Tom Dunn, Chairman of
Orbian said:
"After a very thorough and competitive selection process that
properly reflected the strong franchise position of the Tungsten
Network with many of the world's largest and most demanding
companies, we are extremely pleased to have been selected as
Tungsten's exclusive, worldwide supply chain finance provider. We
see very substantial opportunities to deploy cutting edge
capabilities that will build sustainable, low cost supply chain
initiatives for all on the Tungsten Network."
The new partnership with Orbian will replace the Group's
existing TNF operations, allowing Tungsten to focus on its core
focus areas of electronic invoicing solutions for accounts payable
and receivables and other associated services, while still
leveraging the Tungsten Network to offer tailored supply chain
finance and other trade finance products and solutions to its
customers.
The Tungsten Board has therefore determined as part of the
Operating Review that the existing TNF operations will now be wound
down and closed. The wind-down is already under way, and will be
conducted on a managed, orderly basis. The Tungsten Board and TNF
is working with their existing finance providers who support the
TNF business and customer base, to ensure that TNF customers
currently receiving finance from TNF can migrate to alternative
sources of funding. TNF is in the process of contacting affected
customers.
The Tungsten Board expects the wind-down process to be completed
by the end of June 2020 at the latest.
Enquiries
Tungsten Corporation plc
Andrew Lemonofides, Chief Executive
Officer
David Williams, Chief Financial Officer +44 20 7280 7713
Panmure Gordon UK Limited (Nominated
Advisor)
Dominic Morley +44 20 7886 2500
Canaccord Genuity Limited (Broker)
Simon Bridges/Andrew Potts +44 20 7523 8000
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constitute inside information as stipulated under the Market Abuse
Regulation (EU) No 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
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END
AGRLLFSAFLLLLIA
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