29th Mar 2018 11:44
LONDON (Alliance News) - Pallet manufacturer RM2 International SA on Thursday said it intends to raise USD36 million in equity placing and further EUR5.0 million via an open offer, while also reporting the departure of two non-executive directors.
Placing proceeds will be used by the company to fund the retrofitting of existing inventory of RM2 Blockpals with ELIoT track and trace devices, producing new RM2 ELIoT pallets and for sales and general administrative purposes.
RM2 intends to implement the share placing in two tranches. It plans to issue 2.54 billion new ordinary shares to existing institutional investors, certain directors and senior management team at 1 pence per share.
Shares in the company were trading 42% lower at 1.90 pence in morning trade.
"The board believes that raising equity finance using the flexibility provided by a non pre-emptive placing is the only viable option for the company at this time. This allows investors the opportunity to participate in the placing to raise urgent funding for the company's survival and avoids the requirement for a prospectus, which is a costly and time consuming process," the company said.
Following the share placing, the company intends to make an open offer at the placing price of up to the pound sterling equivalent of EUR5.0 million.
The share placing and open offer is subject to approval of shareholders at a annual meeting scheduled on April 13.
The UK listed company also said holders of convertible preferred shares have agreed to convert their shares into 3.16 billion new shares, upon completion of the share placing.
Separately, RM2 said Frederic de Mevius and John Walsh have stepped down as non-executive director with immediate effect.
Related Shares:
RM2.L
