REG - Deepverge PLC - Amends to Agreement with Microsaic Systems; RPT

DeepvergeAnnouncement

13/12/2021 07:00

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RNS Number : 3553V  Deepverge PLC  13 December 2021

13 December 2021

 

DeepVerge PLC

("DeepVerge" or "Company")

 

Modern Water Mobile Services pandemic response detection to include mass
spectrometry as part of DeepVerge and Microsaic Systems plc Technology and
Commercial Agreement

 

 

DeepVerge (LSE:DVRG.L), the environmental and life science AI company,
announces that it is expanding the range of dangerous pathogens to be detected
within Modern Water Mobile Services ("MWMS") with additional product purchases
under the Company's existing Technology and Commercial Agreement (the
"Agreement") with Microsaic Systems plc ("Microsaic"), details of which were
notified in the RNS of 24 March 2021.

 

It is also amending the terms of the Agreement to allow provision of
additional goods and services, including those which may be developed in the
future by Microsaic.

 

Miniaturised compact technology of Microtox(®) PD and mass spectrometry

 

The initial roll out of Modern Water Mobile Services will include modified
miniaturised mass spectrometry equipment and services supplied by Microsaic.
The value of the current purchase is approximately £262k. This order includes
some newly developed products - Microsaic's solid phase extraction - liquid
chromatography ("SPE-LC") System - and related consumables with a total value
of c.£153k which are currently not covered under the Agreement. These will be
used for quality and contamination detection in a range of markets including
water and soil analysis.

 

The SPE-LC System is expected to be used to detect contaminants of emerging
concern and will form part of DeepVerge's third generation solution of
multiplex pathogen detection and the launch of its Modern Water Mobile
Services, which will facilitate auto-sampling at wastewater sites to reduce
the time and cost of detection.

 

Gerard Brandon, CEO of DeepVerge plc (and ecowaterOS member), commented:

 

"We are delighted to have worked over many months with the amazing team at
Microsaic, transitioning equipment designed to operate in laboratories,
modified to function as road-worthy mobile real-time detection equipment.
Calling on the 20 years of expertise in electronic miniaturisation at
Microsaic and 34 years detection of dangerous pathogens in Modern Water to
deliver state-of-the-art, third generation, pandemic response detection units
in such a short period of time, by altering and miniaturising existing
equipment from both companies."

 

Related Party Transactions

 

As set out above, an order for £262k has been placed which includes new
products and related consumables to the value of £153k which fall outside the
scope of the existing Agreement.

 

It is proposed to amend the Agreement such that the provision of the new
SPE-LC System, and additional goods and services which Microsaic may develop
and supply in future can be supplied to the Company in line with the current
terms of the Agreement. Any such amendments to the Agreement will necessarily
be made subject to the mutual consent of DeepVerge and Microsaic and include
provision requiring each party to consult with its respective nominated
adviser on any proposed additional goods to be added to the Agreement from
time to time.

 

The purchase of the new products and related consumables outside the scope of
the Agreement constitutes a related party transaction for the Company under
AIM Rule 13, as DeepVerge directors Gerard Brandon (CEO) and Nigel Burton
(Non-executive Director) are also non-executive directors of Microsaic.

 

The Directors of DeepVerge (excepting Messrs Brandon and Burton) consider,
having consulted with SPARK Advisory Partners Limited, the Company's nominated
adviser, that (i) the terms of the purchase of the additional products and
consumables are consistent with both the terms of the Agreement and previous
orders under the Agreement, and consider the terms of the purchase of the
additional product and consumables to be fair and reasonable insofar as
shareholders are concerned and (ii) the amendment to the terms of the
Agreement to be fair and reasonable insofar as shareholders are concerned.

 

 DeepVerge plc                                   Ross Andrews                +44 (0) 7340 055 648

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

 (Nominated Adviser)

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

 

About DeepVerge plc (www.deepverge.com)

DeepVerge is an environmental and life science group of companies that
develops and applies AI and IoT technology to analytical instruments and the
data they generate, for the analysis and identification of bacteria, virus and
toxins. DeepVerge is utilising artificial intelligent data analytics to prove
scientifically the impact of skincare product claims on the skin microbiome
for clients including most of the top 20 global cosmetic companies and to
detect remotely, and identify in real-time, dangerous pathogens in wastewater
treatment plants, drinking water, rivers, lakes and reservoirs.

 

About Microsaic (www.microsaic.com (http://www.microsaic.com/) )

 

Microsaic listed on AIM in 2011 to develop and commercialise micro-engineering
chip-based mass spectrometry equipment. Having invested £30m over the last 20
years before and after the IPO, Microsaic has a robust patent portfolio in
cutting-edge technology purpose built for "Industry 4.0" which enables
analytical detection and characterisation at the point-of-need, whether within
a human health environment, conventional laboratory setting, or within a
bioprocessing facility for continuous mass spectrometer detection and
monitoring of data at any step in the process workflow.

 

Microsaic's products and systems are commercially available through global
markets via a network of regional and local partners, targeting its core
laboratory, manufacturing, and point-of-need applications.

 

 

 

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