Shares of Remote Monitored Systems (LON: RMS) are down on Friday after the company said that its Pro-Larva face mask sales have not been significant to date.
The company did state that marketing of the mask has improved, with additional support now being provided to distribution partners in the UK, Europe, and India.
The Pro-Larva brand has also been successfully trademarked in the UK, with the company believing it should help with the sales efforts of Francis MacIntyre Limited (FML) and potentially lead to further orders following FML's initial order of 100k masks in March.
RMS also said encouraging conversations are ongoing with potential partners worldwide, and “the board remains confident that sales will grow in the second half of 2021.”
Sales of the mask remain a priority for the company, but it is increasing its focus on developing a portfolio of new products. In addition, RMS is working to build the research and development side of its business, believing that its ability to commercialise intellectual property will underpin shareholder value.
RMS investors haven't reacted well to the update, with shares currently down over 9% at 0.80p.
Remote Monitored Systems shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are RMS shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.