REG - Deepverge PLC - Accelerated Restructuring

DeepvergeAnnouncement

22/11/2022 07:00

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RNS Number : 1351H  Deepverge PLC  22 November 2022

DeepVerge PLC

 

("DeepVerge" or "Company")

 

Accelerated Restructuring

 

DeepVerge (AIM: DVRG) announces an organisational restructure of its
environmental and life science divisions to meet the growth in demand and
maximise the opportunities that lie ahead. Modern Water will focus primarily
on markets in China, South Asia and EMEA.  Labskin and Skin Trust Club will
primarily target the North American market.

 

Over the past 24 months Modern Water has transitioned from traditional unit
sales of standalone monitoring equipment to fully integrated solution sales,
underpinned by data automation and AI.  The result has been a number of
£1m+ contracts with significant regional partners on four continents.

 

The full integration of Glanaco into Modern Water will create two
sub-divisions within Modern Water - a solutions division for
integrated solution sales and an equipment, assembly and logistics division
run by Glanaco.  Modern Water will focus primarily on markets where there is
regulatory driven need for clean water.

 

Labskin and Skin Trust Club business units will transfer to Rinocloud Limited,
the software and AI company acquired by DeepVerge in May 2019.  Rinocloud is
focused on the use of AI for analysis of aggregated microbiome data extracted
from human skin and environmental water, soil, flora and fauna. Following the
recently announced material wins with IARPA, NOAA and Georgia Ports, this
business will primarily be focused on and in the North American market.

 

It is expected that this restructuring will also result in cost savings for
the Company of up to £2.0m on an annualised basis. The incremental cash costs
of implementing the reorganisation are not expected to exceed £0.2m. The
Company will seek to minimise the impact of these measures on the workforce,
however potential redundancies may need to be considered in some areas of the
business.  The anticipated result of this restructuring is the Company being
in a stronger and healthier position to execute the more focused strategy.

 

Further to the notification of 14 November 2022, and as anticipated, the
Company confirms it has transferred the requisite funds from the recent
fundraising to Riverfort to settle all outstanding amounts under its loan
facility.

Nigel Burton, CEO of DeepVerge plc commented:

"This restructuring will enable the Company to build on the unrealised value
created within both business divisions in order to maximise shareholder
value."

For further information, please contact:

 

Enquiries:

 

 DeepVerge plc                          Nigel Burton, CEO        +44 (0) 8885 234447

 SPARK Advisory Partners Limited        Neil Baldwin             +44 (0) 113 370 8974

 (Nominated Adviser)

 Turner Pope Investments (TPI) Limited  Andy Thacker/James Pope  +44 (0) 20 3657 0050

 (Broker)

 

 

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