Trevor Brown, the company’s founder, and Alex Vergopoulos, responsible for facemask production, are departing the Aim-listed group with chairman Anthony Legge taking over as an executive until a new CEO is found.
RMS has yet to get its new production line running optimally and said today that commissioning had identified several additional problems that need to be rectified.
Plans for a more sophisticated 5-ply mask have also been scrapped because of the production issues with the 4-ply version.
Talks are underway with an independent adviser to help Pharm2Farm, the RMS subsidiary producing the masks, to get the production facility up and running smoothly, said the statement.
RMS added the strategic review will look at P2F, and the potential for its technology to be used in other areas, as well as the future of its two other businesses: Gyrometric and CloudVeil.
Gareth Evans, P2F’s founder is to return as chairman of the subsidiary, while Obi Ezenwa will become P2F’s managing director and focus on applying its technology in other directions.
As part of their departure deal, Trevor Brown and Alex Vergopoulos will each receive 8mln shares while chief operating officer John Richardson will receive 5mln.
Today’s changes were precipitated by objections from Cave to a GBP5mln fundraise and warrant issue in December.
Resolutions to authorise the issue of the warrants and to increase the number of new shares that can be issued were defeated at a shareholder meeting last week.