Shares of Remote Monitored Systems (LON: RMS) are trading higher on Thursday after the company said Pharm to Farm Ltd (P2F) has made “significant progress” since its mask making machine became operational.
An initial order of one million P2F's masks has been placed by Volz Group, with discussions underway to extend this into a production outsourcing arrangement to increase the anti-viral masks' supply.
RMS also said that it has moved to ensure potential supply issues are resolved, so they have entered into a distribution agreement with Francis McIntyre Limited, an online garment retailer, to make P2F's masks available to customers across the UK and Europe via the Amazon eCommerce platform.
Under the terms of the agreement with Francis McIntyre, they have placed an initial order for 100,000 masks, with the exclusive right to sell via Amazon being conditional upon Francis McIntyre ordering a minimum of 1 million masks a month.
P2F has also started supplying batches of between 5,000 and 10,000 masks to several customers looking to trial the product ahead of potentially placing larger orders in the future, while they have also set up a dedicated website that is expected to go live this week.
Furthermore, P2F is in discussions with Lemu Group, the manufacturer of the mask making machine, regarding mechanical issues that need to be resolved before the device can be fully commissioned.
The Company appointed Egremont Capital Limited as an independent advisor for three months to assist with developing P2F's production capabilities. RMS may issue Egremont with up to 500,000 new ordinary shares dependent on production milestones in addition to a monthly fee.
“Whilst a number of issues remain with the machine at BioCity, the purchase order with Volz coupled with the intentions by both parties to enter into a more formal outsourced manufacturing agreement, means P2F can commence sales with confidence,” commented Antony Legge, Executive Chairman of RMS.
RMS shares are currently up over 9.05% at 2.4p on Thursday after initially spiking to 2.90p per share.
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