By 
Remote Monitored Systems PLC (LON:RMS) has updated investors on its recent placing which raised £5mln, as announced on December 18, as well as recent actions of Gareth Cave, a substantial shareholder in the company and a director of its subsidiary Pharm2Farm (P2F).
The AIM-listed firm said it considers the recent placing to be in the best interests of shareholders and the proceeds raised will allow the company to meet its immediate working capital requirements and also accelerate projects to allow it to exploit the full potential of its technologies.
READ: Remote Monitored Systems raises £5mln to support anti-viral mask launch
Remote Monitored said it had noted concerns raised about the scale of the fundraising and said in order to ensure that the company was sufficiently resourced following notification of an imminent working capital shortfall primarily due to the delay in the commencement of mask producing operations at the P2F business, announced on December 11, it took market soundings from investors and discovered that there appeared to be significant demand from potential investors “substantially in excess” of its initial requirements.
Noting this availability of capital the company said it recognised an opportunity to accelerate its plans to position P2F as a high-value supplier of specialist nano-materials and coatings as well as to invest further in its two other businesses, Gyrometric and Cloudveil.
The firm also noted concerns raised by some shareholders in respect of the potential dilution which may result from the future exercise of the warrants that are being issued to placees pursuant to the placing. As a result, it said it intends to engage with placees in order to seek to restructure the warrants with the intention of reducing the potential dilution to existing shareholders, further updates on which are expected in due course.
Meanwhile, Remote Monitored said to strengthen the board following its acquisition of P2F, it is considering a number of candidates for one or more new independent non-executive director positions. The firm said while recent commentary in relation to the company is unhelpful in its pursuit of high quality candidates who can add experience and expertise to the board, it looks forward to providing further updates to shareholders in due course.
The company also said it has noted announcements issued by Gareth Cave and the ongoing social media commentary it has generated including what it said is “threatening and defamatory comments directed at the company and its officers”. The firm said Cave has been informed by Remote Monitored that in its view he has been in deliberate breach of the Relationship Agreement entered into by him at the time of the company’s acquisition of P2F and that it reserves its rights to seek legal remedy in relation to the matter.
Remote Monitored also said Cave has been informed of governance concerns he has caused through his use of social media, adding that it is taking legal advice in respect of these matters and intends to respond “very robustly, including pursuing those publishing defamatory information about the group’s board and notifying the police where appropriate”.
Shares in Remote Monitored were 4% lower at 1.3p in early trading on Wednesday.
Comments