RE: Mutiny - Dr Cave's broker needs information from us21 Dec 2020 14:54
Dr Cave is not a director of RMS due to his position as an employee of Nottingham Trent University and he has not benefitted financially in any way from the activities of the Board other than on the same basis as minority shareholders. He therefore believes he is in a strong position to defend the interestsof ordinary shareholders who now face significantand unnecessary dilution thanks tothe actions of the board of RMS.On 12 November,after Braveheart Investment Group PLC, a company of which Trevor Brown, a director of RMS is Chief Executive, had sold a significant proportion of its shareholding,the Company made the following announcement:
“The Company has noted speculation regarding a possible fundraising by the Company. The Company has as previously announced both settled its convertible loan note debts and completed the admission, following exercise, of all outstanding warrants save for a remainder of 10,000,000 warrants or 0.64% of its issued share capital following Admission of the Warrant Shares. The Company has thereby raised additional funds in excess of £900,000 via recent warrant exercises. As such the Directors do not foresee any current need to raise further funds. “Less than aweek lateron 17 and 18 November 2020, Braveheartand Paul Ryan, the non-executive Chairman of RMStook advantage of demand in the market to sell their remainingshareholdings for between 2.9p and 5.0pfor an aggregate consideration of £18.4 million. Then, on 11 December, the Company issued a statement,to which Dr Cave’s name was attached, indicating the possible need to raise working capital. This announcement was made without the approval or consent of Dr Cave, who questioned the need to raise such a substantial amount of capital. The Placing priceof 1.25 pence represents a discount of 26% to the closing price of anRMS Share prior to the placing being announced, a 40% discount to the price prior to the announcement on 11 December,and nearly 75% to the highest mid-price the highest mid-price of recent weeks, when the directors sold their shares.