RM2 International SA Transfer Pricing Audit (8030G)

TIDMRM2

RNS Number : 8030G

RM2 International SA

08 November 2018

8 November 2018

RM2 International S.A.

("RM2" or the "Company")

Transfer Pricing Audit

The Company's subsidiary, 7636156 Canada Inc. ("763"), which filed for voluntary liquidation on 1 May 2018 (as announced by the Company on the same day), has received a proposed adjustment to its 2013 taxable income related to the transfer pricing of intercompany services, from the Canadian Revenue Authority (the "CRA") for the 2013 tax year. The CRA has also advised the Company that a transfer pricing audit is on-going with respect to this subsidiary for the 2014-2016 years.

If, after final adjudication, it is determined that the CRA's proposed adjustment for 2013 has merit, then any taxes or penalties assessed by the CRA would be non-priority claims against the estate of 763. Such claims would reduce assets available to satisfy the claims of the other creditors of 763, including subsidiaries of RM2 (which have submitted clams to date totaling approximately USD500,000).

The Company believes the adjustments proposed by the CRA are not well-founded as RM2 applies a conservative transfer pricing policy. The adjustments proposed by the CRA will be vigorously contested by the Company.

For further information:

 
 RM2 International S.A.                     [phone] 
 Kevin Mazula, Chief Executive Officer 
  Jean-Francois Blouvac, Chief Financial 
  Officer 
 
 Strand Hanson Limited (Nominated & 
  Financial Adviser and Broker)             [phone] 
 James Spinney / Ritchie Balmer / James 
  Bellman 
 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Notes to Editors

RM2 International S.A. 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 AIM market of the London Stock Exchange under the symbol RM2.L. For further information, please visit www.rm2.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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November 08, 2018 07:07 ET (12:07 GMT)