Largest shareholder in Remote Monitored Systems PLC (Ticker: RMS)
Will vote against the issue of warrants to participants in the recently announced placing to limit dilution of minority shareholders
Proposes board changes to improve corporate governance
On 18 December 2020, RMS announced a placing of 400 million new shares at 1.25p per share (the “Placing”) and the proposed issue of 400 million warrants at 2p per share, the latter being subject to shareholder approval. The Board of RMS entered into the Placing without consulting Dr Cave, the largest shareholder, or informing him until after the event.
Dr Cave is a founder and a director of RMS’ principal subsidiary Pharm2Farm Ltd (“P2F”). Dr Cave owns 289,645,185 ordinary shares in RMS, representing approximately 18.3% of shares in issue prior to the Placing.
Dr Cave announces that he will vote against the issue of the warrants at any forthcoming General Meeting and Dr Cave intends to lodge a requisition with RMS to convene a general meeting to consider board changes to improve corporate governance. His adviser, Egremont Capital Limited has written to the Board of RMS on behalf of Dr Cave indicating that he and Mr Alex Vergopoulos – who was appointed a Director of P2F on 6 December 2020 and whose involvement Dr Cave considers will be central to enabling P2F to deliver on its commercial business plan – are considering their positions in relation to P2F in the absence of substantial board changes.
A copy of the full announcement setting out his reasons for doing so can be found here:
http://www.rns-pdf.londonstockexchange.com/rns/3436J_1-2020-12-21.pdf
