Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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For those who want to learn why RM2 is collapsing, I listed 8 red flags an investor should detect in RM2 before considering an investment. It should serve a valuable lesson. http://bit.ly/2uuOgd9
It appears that China is a non runner, defunct ! The large salaries are obviously continuing. Who in their right mind is going to place an order with a company on the brink of bankruptcy ? Mexico had large penalty clauses if the pallet orders did not meet expectations, which they have not, but the Mexicans cannot take feathers off a frog. This rns was a prelude to the � we have called in the administrators�. Another on bites the dust :-)
cash burn rate, EXCLUDING production costs and one-off costs, and reflecting cost-cutting measures implemented to date is approximately $1.2 million A select few people getting paid alot of money in the background?? are they just milking it? :) Where is money coming from to pay china and mexico?
Not dead yet
The answer I believe is yes!
If I sell, Can I offset my losses here against capital gains?? I messed up doing bed and ISA on other shares.
This month or next ?
As of the latest statement, the company will go into administration this month unless they get a sudden funding or asset sale windfall - bit tight timing-wise to assume funding will suddenly materialize after no progress since the summer. Companies always release statements about imminent POs, sales wins and positive customer feedback right before they go under, so no reason to put any stock into that (no pun intended). That said Christmas could still come late around here - anyone have an opinion about what's next and the odds ?
:-)
Surprised..but for how much longer.
Lol looking in had a conversation with a guy that worked in the city. Never met him retired now. Worked with some of the main firms. He said have a look. I am not going to buy do not have a holding. 100% true story
The long awaited RNS today doesn't on the face of it offer much hope. I've now sold out for a hefty loss but can see there are considerable opportunites for the manufacturer that gets it right with 'Smart Pallets'. It's becoming clear that simply making pallets more durable isn't where it's at - RM2 has recognised - but perhaps too late - that the smart money is in the Internet of Things technology which is evolving rapidly. How cheaply can they make their kit ELIoT - ie electronic link to Internet of Things - and how good can they make their management system whereby Manufacturers/Distributors using their pallets can see if their goods are being shipped correctly/safely or if they arrive damaged, where did the damage take place. A bit like the Video standards (VHS, Betamax, 2000) tussle of the 70s/80s where it became clear that only VHS would continue, RM2 has probably backed the right standard in ELIoT but has it got the money to take it forward ? But for the total mismanagement of the Canadian Factory, the answer would have been Yes but now . . . .?
There is always funding for good ideas and good businesses - especially with Woodford and the Board behind the scenes - the fact RM2 are having so much difficulty getting it in place speaks volumes. Again, these clues are all too late to save investors unfortunately.
Last time they said they were within a 'few weeks' of news on funding due to positive ongoing discussion. Months later, nothing and now declarations of 'confidence' in getting the funding and potential client trials going well. What what they do - not what they say ... though unfortunately this advice is all too late.
RM2 should return cash to shareholders and close down their operations. It should stop raising money from new investors and making them suffer as well. When your costs are greater than your sales would you continue running your operations for a long time? I know I wouldn't. Unless they dramatically raise their sales price, which will put them out of business because the price of a piece of a wood pallet is DIRT CHEAP!
On 27 September 2017, the Company stated it intended to confirm, subject to securing the necessary funding, a 12-month production forecast for its Chinese contract manufacturing partner, Zhenshi, by the end of November 2017. The Company today announces that it has not yet been able to secure the necessary funding to confirm this forecast. The Board remains confident of the Company's ability to obtain funding upon receipt of purchase orders for ELIoT-enabled smart pallets. This follows positive feedback received from trials undertaken by a number of potential customers in North America over the last few months and discussions with several Fortune 500 customers who have expressed an interest in the pallets. ELIoT-enabled smart pallets contain an integrated device that allows pallets to be accurately tracked and traced, thereby significantly improving efficiency and security in the supply chain. Production forecasts for ELIoT-enabled pallets, including production in China and Mexico, would be confirmed following the signature of such contracts with customers. Financial Position Update The Company's unrestricted cash position at 31 October 2017 was $9.4 million. After SG&A, one-time costs and production expenses in November, the Company expects its cash balance at the end of November to be approximately $6 million. The Company's monthly cash burn rate, excluding production costs and one-time costs, remains at approximately $1.4 million. Taking into account production costs and known one-time costs, the Company expects to have sufficient cash to continue operating through January 2018. The Company continues to advance its discussions with potential funding partners and will provide further updates as and when appropriate. The Company remains committed to further reducing its overheads and continues its efforts to monetise, to the extent possible, certain historical assets.
Monitized silly me
If RM2 have not monitored any of their assets (approx 7 million possible) and based on 1.4m monthly cash burn since end July when they had j16.6m in the bank the SP would appear to be tracking cash in bank and therefore valuing the business model at zero although if you consider the assets then you could consider the SP a bit on the cheap side albeit very risky Time rubbing out but there is still time
I saw brief comments today from TW at share prophets that bad news could be expected this week - make of that what you will.
In the last trading update RM2 were to confirm China production numbers for next year by the end of November. Unlike the RM2 BoD to leave it to the last minute
Sorry Rick - if it helps my loss considerably worse. RM2 was boys playing at being businessmen. I've tried to be a bit sharper as a result of my RM2 experience - but having said that I took a punt on Falanx a while back - I go away for a few days and have just come back and seen another horrible mess ! AIM shares are seemingly becoming a one-way bet :-(
Sorry for your loss Rick. This looked a good idea on paper but never got motoring. I have had loads of the 99 club where I am left holding 1% of my original investment. But I learning to sell quicker these days. Glad I avoided this one. Unpalletable !
Oh well there goes 1800 quid i guess. got in right at the start as a gamble. down down down and it is currently worth 70 quid 2017 has been a crappy year. ENTU, CTAG CFSG (doing crap) and now looks like the death of RM2. oh well, we can't take the money with us. life is a gamble
Will we make it into 2018 as an ongoing entity?
Change of broker smacks of desperate times at this late hour.