23rd Jul 2019 14:25
(Alliance News) - RM2 International SA on Tuesday said is North American contract has been extended and it intends to raise up to USD6.0 million from a 300.0 million share placing priced a USD0.02 per share.
The placing is conditional and requires shareholder approval, which the smart pallet company hopes to obtain during a general meeting at the end of July.
The general meeting will also include resolutions for the event that the placing is not approved, and these resolutions will seek approval for voluntary liquidation and AIM de-listing.
In addition, following tests of 15,000 pallets, RM2's agreement with an undisclosed North American Fortune 500 company for the phased deployment of 150,000 pallets has been extended and the expansion is still developing.
RM2 has also signed an agreement for the staged deployment of RM2 ELIoT pallets in Mexico. Volumes have yet to be determined but are expected to be 50,000 in 2019 and 150,000 in 2020.
"These developments, together with ongoing commercial discussions, mark progress towards the business being funded from operational cashflow," said RM2.
At present, RM2's shares are suspended because it has failed to publish its 2018 results due to a lack of funding.