9 Mar 2018 07:00
9 March 2018
RM2 International S.A.
Financial Position and Product Update
RM2 International S.A. ("RM2" or the "Company"), the sustainable smart pallet innovator, provides the following update regarding its financial position and customer relationships.
The Company continues to proactively transition the business to focus on IoT technology in pallet applications, servicing its existing customers and developing new relationships with certain Fortune 500 companies.
As a part of that transition, the Company will continue to reduce resources and investments in non-core, non value-add activities so that it can increase its investment in service.
The Company is now pleased to report that, following the sale of a non-core office building in Switzerland and repayment of the related mortgage, it received net proceeds of approximately $2 million and is therefore able to extend its cash resources to continue operating through mid-April based on information available to it today. The timeframe is dependent on the outcome of ongoing discussions with third parties, including manufacturing partners and sources of financing.
The Company is in advanced stages of financing discussions with the support of its existing shareholders and will announce developments to the market at the earliest possible opportunity.
Product Update
Trials of RM2 ELIoT smart pallets are producing remarkable results for customers' supply chains in North America. The RM2 ELIoT proprietary tracking technology communicates the precise location of specific pallets, allowing misdirected or mishandled goods to be identified immediately, permitting customers to reduce loss, mishandling, spoilage and theft, thereby creating significant cost savings and supply chain efficiencies.
Significant opportunities with Fortune 500 companies are in final trial phases. The conversion of a subset of these opportunities, deployed and financed on schedule, is expected to result in the Company generating positive EBITDA in 2019.
The Company is also proud to report that the RM2 ELIoT Pallet won Material Handling Product News' 2017 Product of the Year award in the category of Packaging and Pallets. This prestigious industry award honors those products and companies whose innovations have improved materials handling systems and equipment within manufacturing, distribution centres and warehouses.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
For further information:
RM2 International S.A. | +44 (0)20 7638 9571 |
Kevin Mazula, Chief Executive Officer Jean-Francois Blouvac, Chief Financial Officer | |
Strand Hanson Limited (Nominated & Financial Adviser and Broker) | +44 (0)20 7409 3494 |
James Spinney Ritchie Balmer James Bellman | |
Citigate Dewe Rogerson | +44 (0)20 7638 9571 |
Simon Rigby Ellen Wilton Elizabeth Kittle |
Notes to Editors
RM2 International S.A. specialises in pallet development, manufacture, supply and management to establish a leading presence in global pallet supply and improve the supply chain of manufacturing and distribution businesses through the effective and efficient use and management of composite pallets. It is quoted on the AIM market of the London Stock Exchange under the symbol RM2.L. For further information, please visit www.rm2.com