Remote Monitored Systems PLC Pharm 2 Farm Update (4022I)
December 11 2020 - 7:00AM
UK Regulatory
TIDMRMS
RNS Number : 4022I
Remote Monitored Systems PLC
11 December 2020
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
11 December 2020
Remote Monitored Systems plc ("RMS" or the "Company")
Pharm 2 Farm Update
Remote Monitored Systems plc, announces the following updates in
respect of its wholly owned subsidiary, Pharm 2 Farm Limited
("P2F").
New viricidal mask Production Line
The Company has received an update from Lemu Group ("Lemu"), the
manufacturer of the mask making machine, in respect of the timing
for testing and delivering of the new production line.
Factory Acceptance Testing of the machine is due to take place
later today, alongside this testing there will also be a batch of
masks produced for certification purposes. The mask is being
certified to the EN14683 standard.
Following testing, Lemu has indicated that it now intends to
carry out work on certain components (principally final finishing
and hardening) such that delivery of the machine to P2F's premises
in Nottingham, is not now expected until 28th December 2020 at the
earliest.
The consequences of this delay, in combination with the holiday
period, are that RMS has had to review the P2F commissioning and
production schedule in January and February next year with the
Company anticipating that a maximum of 1m anti-viral masks will be
produced at Nottingham in January and 2m in February 2021.
Thereafter production is expected to build to a maximum capacity
of 5m masks per month should the machine perform 24 hours a day, 7
days a week at its anticipated optimum specification.
The Company will provide updates as appropriate including in
relation to today's Factory Acceptance Testing process.
Heads of terms with surgical mask manufacturer
As previously announced on 16 November 2020, the Company entered
into binding heads of terms with a German surgical mask
manufacturer, the Volz Group of Companies ("Volz"). The parties
remain in constructive discussions in relation to finalising a
number of initiatives and Volz has recently sent a batch of masks
produced by them with P2F's anti-viral layer for certification*.
Subject to successful certification of these masks the Company
anticipates that its next step will be to place an order of 0.5m
masks, incorporating P2F's anti-viral layer, for delivery to the UK
in January 2021.
* certification is required for the production process and so
separate certification processes are required for P2F's and Volz's
production. Certification is now expected to be completed in the
first week of January in both cases.
Sales and marketing
Whilst P2F remains confident that indicative demand is above
P2F's maximum production capabilities, RMS expects sales to be a
maximum of 1.5m masks in January and 2m masks in February 2021
reflecting the above production expectations. The Company expects
to be in a position to convert this demand into firm orders
following certification and installation of the production
line.
Corporate Developments
P2F is adding resources across production and sales in order to
meet the challenges of establishing new production and developing
the sales pipeline. However the cash-flow consequence of the delays
set out above, primarily a reduction of sales revenue in the near
term, is that P2F's working capital requirements in order to build
sales at P2F are now greater than previously anticipated and the
board is considering how best to fund this additional requirement.
As at 10(th) December 2020 the Company had cash of GBP706.5k and no
debt save for trade creditors.
The Company looks forward to providing further updates as it
seeks to develop its business in this emerging and exciting
business.
- ENDS -
ENQUIRIES :
Remote Monitored Systems plc
John Richardson (Executive Director) +44 7751 118916
Gareth Cave (MD Pharm2Farm)
SP Angel Corporate Finance LLP +44 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Caroline Rowe
Peterhouse Corporate Finance +44 20 7469 0930
Joint Broker
Lucy Williams
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