Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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But on its last legs, unfortunately. Still twitching but the hole in the garden has been dug. The directors must be wondering whether to leave this one off the future C.V.?
RM2 presentations from Packexposhow Las Vegas, not the most dynamic team presentation but shows there is still life in the old dog yet. It must be getting to the point that the RM2 BoD must advise the market what they are doing to raise the cash for the already ordered pallets and an update on production in Mexico and China https://twitter.com/rm2pallets?lang=en
Sadly investors could be looking at a total loss here. I am also very surprised at some of the choices Woodford has made regarding his AIM stock picks, RM2 being one of them.
It's complicated and not easy to predict but in general terms it would be very bad news. You would be lucky to get back 50% of your investment from this point because most shareholders would not want to hold stock in a private company and would make for the exit.
TTom -- you might be right. What happens to shareholders' stock holdings in that instance - do they get bought out or just a % of the private company?
My best guess is that it could be going the same way as Sphere Medical. http://www.proactiveinvestors.co.uk/companies/news/182797/sphere-medical-slumps-as-it-proposes-cancellation-of-aim-shares-in-bid-to-secure-8mln-investment-from-neil-woodford-and-co-182797.html
RM2 stock has flatlined, new CEO hands back stock options and disappears within a month and the company needs another £ 65M or it will go out of business in less than 9 months. Does anyone have any thoughts on what happens from here ? The stock appears to be trading but Bid/Ask prices frozen, so is it liquid and trading, or no market for it ? Woodford is having a disastrous year as is well known, but even worse are his AIM investments, several which are running out of cash and could go down, so RM2 is one of many with cap in hand. What's next -- anyone?
Even the RM2 twit account has gone silent since 17th August , they are normally shouting from the roof tops they are going to be @ booth S-8015 at Packexpo 25th - 27th September Las Vegas
Sells ? I'm not so sure about that
Most are sells
Volume increased over recent days and looks like someone hovering up shares Any guess on where the SP would sit if they achieved the financing ?
looking at the trades today me starting think a financing deal is on the cards
The facts speak for themselves, they cocked up big time The only comfort I take is that Mr Molson ( as well as others ) was willing to throw another 2 big ones (£2m) at the company at the end of June and whilst you can say they had no choice, yes they did, they could have walked away so they must see something. Also its not clear when Ian Moslen made this statement which I would suggest is not recent. Maybe the comment that the decision to take the company public was premature could be an indication they will take it back private. I would think they will need to give a trading update before long if they are to raise money
An AIM-listed maker of plastic pallets faces a cash squeeze after a series of blunders by an all-star board of directors, including the scion of an international brewing empire and the former bosses of Marks & Spencer and Diageo. RM2, which invented a plastic pallet that is stronger than wood and can be tracked around the world using a microchip, has burnt through more than £130m since listing on AIM three years ago. It had reserves of $2.7m (£2.1m) at the end of May and was forced to tap existing investors, including the star City fund manager Neil Woodford, for $20m in June. At its current cash burn rate, it is understood RM2 will be able to keep the lights on for the next nine months, but it does not have the funds to buy new stock. Its existing stockpile is not enough to fulfil the large volumes of orders it hopes to receive. The situation is acutely embarrassing for RM2’s high-profile board, which is chaired by the beer magnate Ian Molson and includes ex-Marks & Spencer boss Lord (Stuart) Rose and former Diageo chief Paul Walsh as directors. Molson, who chaired the executive committee of his family’s beer company until a 2005 merger with rival Coors, said an attempt to manufacture the pallets in-house had been a “terrible mistake” and admitted the “decision to take the company public had been problematic and premature”. RM2’s shares closed on Friday at 6p, having floated at 88p.
Articles on RM2 in The Sunday Times business section today. Will follow this.
Wouldn't surprise me if he does being rm2. But they are options that are out the money so not rm2's biggest worry. What concerns me is China manufacturing is waiting on a payment to start manufacturing pallets. There has been an additional $2.5m spend by Jabil that is to be recovered over the next few years with an increased cost per pallet. will wait on the side with this one until funding is sorted for additional pallets if it can be sorted!
Does he get to keep his shares?? http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RM2/13290656.html
Something stirring !
Keep asking myself the same question, and as a long standing pained investor the share price reaction makes me feel some comfort, let's face it headline reads horrible but the latter part of the statement 'Mr Judd's resignation follows the Board's decision not to proceed with a proposed equity offering, as announced on 24 July 2017' Why would the board allow a veteran from the industry to leave, after all the hiccups along the way surely they must realise that, the very thin ice they are skating on is close to breaking point. Only assumptions I can come to are 1) as slow burner mentioned in his post 2) they have infinitely more colour around contracts/orders than we do, hence why do an issue at current levels at what could be a huge discount to nav and would be so dilutive maybe my rosetinted glasses are all steamed up but at the end of the day the board and biggest investors have backed this all the way and have far more than me to lose, and for the board to make a stand/statement like this in letting a new CEO go after only weeks and can only assume months of searching and negotiating does to me read an interesting statement of intent.
Equity may be finished?
RNS announcement he has left with immediate effect. WTF is going on with this company????? Really scary.
Would love to be a fly on the wall Maybe we will get a RNS in the morning with an AGM statement, haha we wish this is RM2
Or you could take your chances and roll whats left into Acacia Mining.
Article with mention of RM2 and pallet life time cost, If I'm correct US$80 per unit does still appear high http://warehousenews.co.uk/2017/07/pallet-lifetime-costs-matter-growing-pallet-options-necessitate-more-diligence/
I suspect they will try to raise cash to cover issued purchase orders (USD 12.7m) or use the cash in bank (US$22.6m) from the recent fund raising ( if the terms allow ) to buy some time and try to improve the outlook of the company with signed contracts and would also leave USD10m+ 6 months running cost excluding income from the 265k pallet pool which would be increased as the pallets come onto the market. I calculate the pallets are costing approx US$80 (any offers on a more accurate costing ) each so @ USD 12.7m committed orders would increase the pallet pool from the existing 265K to approx 420k so would increase the income to approx USD 9m Also if they can sell the existing assets as planned that would get them a further US$7.7m which they can then use as running cost on top of the remaining USD 10m from the recent fundraising so basically gives them approx 9 months to sort out the funding at an improved SP or via alternative financing tools. Maybe this is the new CEO Jasper Judd taking a different view.