Remote Monitored Systems (LON: RMS) shares are trading lower on Monday despite announcing it has signed a deal with PIC Consultants.
The deal will see the company supply a new range of retail hydroponic nutrients for distribution into the UK hydroponics market.
The range consists of eight solutions, which contain patented nanoparticles produced by the company’s subsidiary, Pharm 2 Farm, and will be marketed throughout the UK and Ireland under the nano.10-9 brand.
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Hydroponics involves growing plants in sand, gravel, or liquid, with added nutrients but without soil. RMS said it feels hydroponics a potential solution for the growing concern about food security.
RMS said the patented nanoparticles have demonstrated to be an improved alternative to common mineral fertilisers, including ethylenediaminetetraacetic acid (EDTA) chelates.
PIC has agreed over the next 12 months to purchase a minimum of 40,000 litres of the eight solutions in the nano.10-9 range, with expected revenue for RMS of around £80,000. However, the company expects this to grow significantly as the market becomes more aware of the benefits.
“We are delighted to have entered into this agreement with PIC which reflects the excellent demand we perceive for Pharm 2 Farm’s high-quality nano particles in the hydroponics sector and also demonstrates the breadth of applications where our nano particles can benefit the end-user,” said Antony Legge, Executive Chairman of RMS.
RMS’ share price is currently down 2.8% at 0.884p.
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