RMS.L Regulatory News (RMS)

21 June 2021

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside is now considered to be in the public domain.

Remote Monitored Systems plc

("RMS" or the "Group")

New Hydroponics Agreement

The Group is pleased to announce that it has signed an agreement with PIC Consultants Ltd ("PIC") to supply a new range of high-grade retail hydroponic nutrients for distribution into the UK hydroponics market (the "Hydroponics Agreement"). The range consists of eight specially formulated solutions, all of which contain patented nano particles produced by the Group's subsidiary, Pharm 2 Farm Ltd ("P2F"), and will be marketed throughout the UK and Ireland under the brand nano.10-9.

The pressure on the agriculture industry to meet the growing demand for grains and food leads to the search for high-yielding farming techniques, such as precision farming and urban farming. Hydroponics is considered a potential solution for the growing concern about food security in the coming years. (Hydroponics Market Size & Share, Growth, Trends, and Forecasts | COVID-19 Impact on Hydroponics Market | MarketsandMarkets)

The hydroponics method of growing plants in the absence of soil, requires extremely detailed nutrient management practices to overcome pH fluctuations, effective nutrient uptake and environmental stability issues found with mineral fertilisers. The Group's patented nano particles are of significant interest to the hydroponic market as they have been demonstrated to be an improved alternative to common mineral fertilisers, including ethylenediaminetetraacetic acid (EDTA) chelates, which are known to fall out of solution in the presence of UV light sterilisation. They also deliver minerals at a higher concentration with increased bioavailability compared to other mineral formats currently used within this industry, resulting in stronger, healthier plant growth, with higher yields, shorter cultivation times and improved nutritional value.

P2F has worked with the founders of PIC over the last couple of years, initially in developing a powder-based product and now this new water-based range nano.10-9, which is more easily incorporated in irrigation systems. PIC is a new company that has been set up to sell the nano10-9 range to Global Air Supply Ltd, which is an established distributor to the UK retail hydroponics market, whose customers include competition growers (giant vegetables), more general vegetable growers and plant breeders.

Under the terms of the Hydroponics Agreement, PIC has agreed over the next 12 months to purchase a minimum of 40,000 litres in aggregate, of the eight solutions in the nano.10-9 range, with an expected revenue for the Group of around £80,000. However, this is expected to grow significantly as the market becomes more aware of the benefits of the nano particles in plant nutrient ranges.

Barry Faulkner, director of PIC, said; "We have been working closely with Dr Gareth Cave and his team for several years, constantly developing and improving this nutrient range to be the best it can be. Nanoparticles are going to be revolutionary in fertiliser delivery and we can't wait to bring this fantastic product to the UK and European markets."

Antony Legge, Executive Chairman of RMS, said; "We are delighted to have entered into this agreement with PIC which reflects the excellent demand we perceive for Pharm 2 Farm's high-quality nano particles in the hydroponics sector and also demonstrates the breadth of applications where our nano particles can benefit the end-user. We very much look forward to working with PIC to develop the market opportunities for these high-quality nutrients."

- ENDS -

ENQUIRIES:

Remote Monitored Systems plc

Antony Legge (Executive Chairman) via IFC Advisory

SP Angel Corporate Finance LLP +44 20 3470 0470

Nominated Adviser and Joint Broker

Stuart Gledhill

Caroline Rowe

Peterhouse Capital Limited +44 20 7469 0930

Joint Broker

Lucy Williams

IFC Advisory Ltd +44 20 3934 6630

Graham Herring

Zach Cohen