RM2 International SA Update on Trading and Financial Position (0578Y)
01 December 2017 - 6:01PM
UK Regulatory
TIDMRM2
RNS Number : 0578Y
RM2 International SA
01 December 2017
1 December 2017
RM2 International S.A.
Update on Trading and Financial Position
RM2 International S.A. ("RM2" or the "Company"), the sustainable
pallet innovator, provides the following update.
On 27 September 2017, the Company stated it intended to confirm,
subject to securing the necessary funding, a 12-month production
forecast for its Chinese contract manufacturing partner, Zhenshi,
by the end of November 2017. The Company today announces that it
has not yet been able to secure the necessary funding to confirm
this forecast.
The Board remains confident of the Company's ability to obtain
funding upon receipt of purchase orders for ELIoT-enabled smart
pallets. This follows positive feedback received from trials
undertaken by a number of potential customers in North America over
the last few months and discussions with several Fortune 500
customers who have expressed an interest in the pallets.
ELIoT-enabled smart pallets contain an integrated device that
allows pallets to be accurately tracked and traced, thereby
significantly improving efficiency and security in the supply
chain. Production forecasts for ELIoT-enabled pallets, including
production in China and Mexico, would be confirmed following the
signature of such contracts with customers.
Financial Position Update
The Company's unrestricted cash position at 31 October 2017 was
$9.4 million. After SG&A, one-time costs and production
expenses in November, the Company expects its cash balance at the
end of November to be approximately $6 million. The Company's
monthly cash burn rate, excluding production costs and one-time
costs, remains at approximately $1.4 million.
Taking into account production costs and known one-time costs,
the Company expects to have sufficient cash to continue operating
through January 2018. The Company continues to advance its
discussions with potential funding partners and will provide
further updates as and when appropriate.
The Company remains committed to further reducing its overheads
and continues its efforts to monetise, to the extent possible,
certain historical assets.
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:
+44 (0)20 7638
RM2 International S.A. 9571
Kevin Mazula, Chief Executive
Officer
Jean-Francois Blouvac, Chief
Financial Officer
Strand Hanson Limited (Nominated +44 (0)20 7409
& Financial Adviser and Broker) 3494
James Spinney
Ritchie Balmer
James Bellman
+44 (0)20 7638
Citigate Dewe Rogerson 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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