24 WESTERN PALLET
RM2 Extends Life into April, Will Focus on IoT Technology
After warning investors that it would run out of money in mid-March unless new support emerged, composite pallet company RM2 reported on March 9 that it has generated extra cash through selling a building, giving it enough cash to carry it into April. It said it continues to proactively transition the business to focus on IoT technology in pallet applications, “servicing its existing customers and developing new relationships with certain Fortune 500 companies.”
As a part of that transition, RM2 will continue to reduce resources and investments in non-core, nonvalue-add activities so that it can increase its investment in service. Following the sale of a non-core office building in Switzerland and repayment of the related mortgage, it received net proceeds of approximately $2 million and is, therefore, able to extend its cash resources to continue operating through mid-April based on information available to it at the time. The timeframe is dependent on the outcome of ongoing discussions with third parties, including manufacturing partners and sources of financing.
It stated that it 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.
RM2 reported that trials of its ELIoT smart pallets are producing remarkable results for customers’ supply chains in North America. The RM2 ELIoT proprietary tracking technology communicates the precise location of specific pallets, allowing misdirected or mishandled goods to be identified immediately, permitting customers to reduce loss, mishandling, spoilage, and theft, thereby creating significant cost savings and supply chain efficiencies.
Significant opportunities with Fortune 500 companies are in final trial phases, RM2 reported, saying that the conversion of a subset of these opportunities, deployed and financed on schedule, is expected to result in RM2 generating positive EBITDA in 2019.
RM2 also noted that its ELIoT Pallet won the Material Handling Product News’ 2017 Product of the Year award in the category of Packaging and Pallets.