4 Mar 2021 07:00
4 March 2021
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Remote Monitored Systems plc
("RMS" or the "Company")
Update on Pharm to Farm Ltd ("P2F")
The Company is pleased to report the significant progress achieved since the announcement on 18 February.
· Order for 1.0 million of P2F's masks placed with Volz with outsourcing manufacturing discussions in progress
· Distribution agreement to make masks available in UK & Europe via Amazon
· Launch of web site for the P2F mask
· Independent adviser and line manager appointed to bring mask machine into full operation
Further to previous announcements in relation to discussions the Company has held with the Volz Group of Companies ("Volz"), an initial order has been placed for one million of P2F's masks, incorporating P2F's proprietary antiviral material (α-virion), and discussions are under way to extend this into a production outsourcing arrangement to increase the supply of the anti-viral masks. Not only should this approach enable the expected demand for the mask to be met but it will also allow P2F to focus on its core strengths of developing and producing nanomaterials and associated innovative products.
Whilst interest in the masks has been strong, it was important to ensure that potential supply issues had been resolved before committing to deliveries. On the back of the discussions with Volz, P2F has entered into a distribution agreement with Francis McIntyre Limited, an online garment retailer with the brand FM London, ("Francis McIntyre") to make P2F's masks available to customers across the UK and Europe via the Amazon E-commerce platform ("Amazon"). Under the terms of the agreement, Francis McIntyre has placed an initial order for 100,000 masks, with the exclusive right to sell via Amazon being conditional upon Francis McIntyre ordering a minimum of 1 million masks per month. P2F has also started supplying batches of between 5,000 and 10,000 masks to a number of customers looking to trial the product ahead of potentially placing larger orders in the future. A dedicated website for the mask has been created (www.pro-larva.com) and is expected to go live by the end of this week, which should help drive further demand.
P2F is in discussions with Lemu Group, the manufacturer of the mask making machine, regarding mechanical issues that need to be resolved before the machine at BioCity can be considered to be fully commissioned. The Company has agreed to appoint Egremont Capital Limited ("Egremont") as an independent advisor for the next three months to assist with development of P2F's production capabilities. Jonathan Hall, Egremont's founder, has a background in production manufacturing, in addition to Egremont's expertise as a corporate advisor. In addition to a monthly fee, Egremont may be issued with up to 500,000 new ordinary shares dependent on achieving certain production milestones. In addition, a line manager has been recruited at BioCity to strengthen the production team.
Antony Legge, Executive Chairman of RMS, said; "We are very pleased to update the market with the positive developments achieved by the P2F team. Whilst a number of issues remain with the machine at BioCity, the purchase order with Volz coupled with the intentions by both parties to enter into a more formal outsourced manufacturing agreement, means P2F can commence sales with confidence as we anticipate a continuing market need for P2F's proprietary α-virion material, notwithstanding the progress of various national Covid-19 vaccination programmes."
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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