19 Jan 2018 07:00
19 January 2018
RM2 International S.A.
Financial Position Update
RM2 International S.A. ("RM2" or the "Company"), the sustainable pallet innovator, provides the following update on its cash position.
On 1 December 2017, the Company provided estimated information on its expected cash resources position over the following eight weeks. The Company's unrestricted cash position at 31 December 2017 was $4.1 million. After SG&A, one-off costs and production expenses in January 2018 the Company expects its cash balance at the end of January to be approximately $2.0 million. The Company's monthly cash burn rate, excluding production costs and one-off costs, and reflecting cost-cutting measures implemented to date is approximately $1.2 million. The Company has been able to extend its cash resources beyond earlier forecasts by renegotiating its production commitments, delaying the start of production in China, improving payment terms, reducing its running costs and the delayed realization of certain liabilities. The Company remains committed to further reducing its overheads and continues its efforts to monetize certain historical assets where possible.
Taking into account production costs and known one-off costs, based on the information available to it today, the Company currently expects to have sufficient cash to continue operating through the third week of February 2018, although this date could vary depending upon the outcome of ongoing discussions with third parties, including manufacturing partners and alternative sources of financing.
The Company has received positive feedback from trials undertaken by a number of potential customers in North America over the last few months and is in discussions with several Fortune 500 customers who have expressed an interest in the pallets. Notably, a leader in a North American specialty food sector has agreed to roll out ELIoT pallets in their supply chain subject to the pallet meeting KPIs throughout the implementation.
The Company continues to advance its discussions with potential funding partners and customers in order to progress the business. The Company continues to take appropriate advice as it explores the financial and strategic alternatives available to it. The Company will provide further updates as and when appropriate.
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 |
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