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RM2 International shares drop 60% as board members depart and placing announced
Supply chain solutions provider RM2 International saw its share price plummet on Thursday following the exit of two board members and after announcing a conditional share placing.
Frédéric de Mevius and John Walsh, the latter of which was originally the chief executive of the company, both stepped down from their respective roles as non-executive directors with immediate effect, with the Board thanking them for the "significant contribution" they had made.
Meanwhile, RM2 International proposed a placing of 2,535,211,265 new ordinary shares at a price of one pence each with an intention to raise $36m.
The company also proposed a conditional conversion of all convertible preferred shares into 3,156,907,940 new ordinary shares.
A statement from RM2 International said: "For the Placing to proceed, the Company requires Shareholders' approval to authorise the Directors to disapply existing Shareholders' pre-emption rights in relation to the issue of the Placing Shares and the Conversion Shares on a non pre-emptive basis."
The funds were needed to finance the retrofitting of an existing inventory of RM2 Blockpals with track and trace devices, the production of new pallets with track and trace units, and for sales and general administrative costs.
The ELIoT track and trace device is being used to address issues of asset retention and for reduction of theft.
As of 1051 BST, RM2 International's shares were down 41.60% at 1.90p.