RM2 International Shares Plunge 70% On News Of Delayed Accounts

(Alliance News) - RM2 International SA on Wednesday said there is a strong likelihood it will be ...

Alliance News 26 June, 2019 | 9:20AM
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(Alliance News) - RM2 International SA on Wednesday said there is a strong likelihood it will be unable to publish its 2018 accounts by the end of June and expects its shares will be temporarily suspended as a result.

Shares in RM2 plummeted 73% to 7.44 pence in reaction to the announcement.

The pallet developer and manufacturer said it has been "seeking near-term funding" but has not yet received a binding offer. As interim funding has yet to be confirmed, RM2 and its auditors have not been able to finalise the audit of its 2018 financial statements.

As such, its shares will almost certainly be suspended from AIM on Monday next week until the audited results are published.

"The company will continue discussions with potential lenders over the next few weeks, however shareholders should be aware that there is no guarantee any offer of funding will be on acceptable terms to the company, or be forthcoming at all," said RM2.

According to RM2, its "ramp-up of pallet deployment in the pharmaceutical sector" continues, and the company has signed more contracts in the food preparation sector as well. The firm is hoping to announce a "large contract with a well-known multinational...in the near future".

As at May 31, the company's cash balance stood at USD3.3 million and its monthly cash burn, "including cash invested in the production of pallets to meet demand", is around USD2.3 million.

By Anna Farley; annafarley@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
RM2 International SA 8.50 GBX 6.25 -
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