DELAND, FL / ACCESSWIRE / August 12, 2022 / ARC Group Worldwide, Inc. (OTC PINK:ARCW), following the business combination with RM2 International S.A. completed on February 1, 2022, is a leader of the smart pallet revolution with autonomous IoT sensor technology embedded in its logistically-optimized, hygienic BLOCKPal composite pallets. The Company is pleased to provide this trading update.
RM2 continues to experience record demand for its BLOCKPal pallets, and is working diligently on the Company's production ramp up, further expanding its ability to provide more pallets to customers. Retailers' and suppliers' demand for the pallets stems from the need for smart and higher performance pallets, coupled with their desire to remove wooden pallets from their supply chains. Demand currently outstrips supply, and the Company is focused on increasing production capacity by further enhancing production processes.
The Company has maintained gross margins against the headwinds of inflationary pressures. This steady margin, combined with increased pallet deployments, has enabled to the Company to become EBITDA positive for the month in June 2022. Further EBITDA improvement is expected through increasing density in RM2's pooling loops.
RM2's CEO Kevin Mazula commented, "The additional capital brought to the business through the combination of ARC Group Worldwide, Inc. and RM2 International S.A. in February 2022 has allowed the Company to continue to bring an increasing number of our hygienic and trackable composite pallets to the market. We are delighted with the strong demand for the BLOCKPal pallets coming from both existing and new clients and we look forward to continuing to satisfy this demand."
Separately, the Company also announces that, pursuant to the Share Exchange Agreement dated July 6, 2021 relative to the business combination, as certain metrics were not achieved as of July 2022, the relative valuations of the combining entities were adjusted, leading to the cancellation of 11,594,619 escrowed ARC Group Worldwide, Inc. shares held by historical RM2 shareholders. As a result of this cancellation, as of the date hereof there are 116,099,776 shares of Common Stock issued and outstanding on a fully diluted basis, of which 14,931 are held in Treasury.
Notes to Editors
Following a business combination completed on February 1, 2022, the Company applied to FINRA, its regulatory authority, to change its name to RM2 International, Inc. The review of that application is expected to be completed in the near future. RM2 International, Inc. specialises in pallet development, manufacture, supply and management to establish a leading presence in global pallet supply and improve the supply chain of manufacturing and distribution businesses through the effective and efficient use and management of composite pallets. It is quoted on the Pink Sheets of the OTC Markets under the symbol ARCW. For further information, info@rm2.com or please visit www.rm2.com
Forward Looking Statements
This release includes certain forward-looking statements and projections. Such statements are subject to risks and uncertainties that could cause results to differ materially from the Company's expectations. While the Company makes these statements in good faith, neither the Company nor its management can guarantee that anticipated future results will be achieved. The Company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by its, whether as a result of new information, future events, or otherwise. All forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: ARC Group Worldwide, Inc.
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