Shares of Remote Monitored Systems (LON: RMS) have fallen on Tuesday after a statement from its Chairman, Antony Legge, highlighted the challenges of moving away from the “short-term demands” of the COVID-19 pandemic.
Speaking on the mask, Legge said sales had not come through as had been hoped.
While describing the pandemic period as a potential game-changer for the company, Legge said such narrow focus does not reflect the “underlying value of the intellectual property within the business.”
Legge noted that while the priority for RMS at the start of the year was mask production, the challenge for the company now is to find commercial applications where its technology can add significant value.
RMS has already announced the launch of a new liquid nutrient for plants, and its subsidiary, Pharm 2 Farm, has previously made reference to trials for a product that may counter the effect of Citrus Greening, a condition that causes poor vegetative growth.
They have also been undertaking trials for a new foodstuff for monogastric animals, and RMS is currently in discussions with potential partners for each product. However, Legge did warn that the trials can be lengthy with the potential to take up to four years for a citrus greening product.
Progress on these products has also been delayed due to the AIM-listed company's focus on the anti-viral mask.
“A priority since the start of the year has been to manage the mask production business, where expectations had run ahead of what was deliverable and to then refocus the Group back on its core business of developing innovative solutions using our patented nano-production capability,” stated Legge.
“This has included the decision to dispose of Gyrometric Systems Limited. As well as putting in place alternative sub-contracting manufacturing arrangements through Voltz Filters UK Limited, the board has also been working with Lemu in respect of the mask making machine that was installed, but never commissioned, at BioCity. Terms have been agreed, in principle to return the mask making machine to Lemu,” he added.
RMS shares have fallen over 20% so far on Tuesday, trading at 0.655p. For the year to date they are down 55.58%.
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