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RM2 shares soar almost 300%, funds raised through palatable office sale
RM2 International's share price skyrocketed over 290% on Friday after the company extended its cash resources through April from selling off an office in Switzerland.
After paying off the related mortgage, the pallet manufacturer gained net proceeds of $2m from the sale, which should allow the company to continue operations through mid-April dependant on ongoing discussions with partners and sources of financing.
A statement from RM2 said: "The Company is in advanced stages of financing discussions with the support of its existing shareholders and will announce developments to the market at the earliest possible opportunity."
The move is part of the company's transition into IoT pallet applications and away from non-core, non-profit making resources and investments.
The AIM-traded company also reported positive results for its RM2 ELIoT Tracking technology in North America, which allows for the tracking of specific pallets, reducing the chance of mishandling of goods, theft or loss.
Opportunities with Fortune 500 companies related to the product are in trial phases, with the conversion of these opportunities "expected to result in the company generating positive EBITDA in 2019," the company said.
As of 1015 GMT, RM2 International's shares were up 290.91% at 4.30p.