REG - Deepverge PLC - Modern Water Q2 orders exceed £3m, RPT

DeepvergeAnnouncement

30/06/2022 07:16

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RNS Number : 7307Q  Deepverge PLC  30 June 2022

30 June 2022

 

DeepVerge PLC

 

("DeepVerge" or "the Company" or "the Group")

 

Modern Water Q2 orders exceed £3m post COVID restrictions in China &
South Asia

New monitoring and membrane revenues secured in high value microchip
fabrication sector

 

DeepVerge plc (AIM: DVRG), is pleased to announce that Modern Water has
secured Q2 orders in excess of £3m in China and South Asia for delivery
during the current financial year. Significant sales of water monitoring and
membrane water recovery have been secured with Tier 1 partners. This includes
a new vertical in the technology sector, specifically microchip fabrication
manufacturers, opening up a very large new vertical worldwide market for the
Modern Water division.

 

The Modern Water sales teams in US, the EU, China and South Asia have put
strategies in place to diversify which has led to the opening up of new
verticals and growth in new markets. This focus has resulted in a number of
significant seven figure deals across the markets of South Asia and the Middle
East.

Gerard Brandon CEO DeepVerge plc, commented:

"Chinese and South Asian markets have been challenging because our staff,
customer staff, partner staff and staff of collaborators that we're in
negotiation with, have been rolling in and out of lockdowns for the best part
of two years. Whilst we have continued to generate business, communication
between teams, as well as supply chains, has been challenging. However through
our drive to build the business and the intensity of our marketing and selling
strategy, mostly online, we are now seeing a rebound as a result of pent up
demand which is putting the market back on track.

We changed the business model in Modern Water from selling lower ticket
equipment to medium and large enterprise solution sales. Investment was
targeted to upgrading existing Microtox and Microtrace equipment, adding more
efficient data aggregation capabilities, interfacing with third party systems
and integrating with large SCADA operational management systems. Sales focus
has been to identify partners capable of making larger solution sales and
training their staff to sell our new offering. This strategy is now gaining
traction and we continue to build our presence as a world leading water
testing solutions provider."

 

Related party transaction

DeepVerge's subsidiary, Innovenn UK Limited, has signed a second Statement of
Work ("Further Order") with Microsaic Systems plc ("Microsaic") under the
previously announced Manufacturing Services Framework Agreement ("MFSA")
between the same parties.  This contract has a value of approximately
£600,000 and constitutes a related party transaction for DeepVerge under Rule
13 of the AIM Rules for Companies, by virtue of its size and Microsaic and
DeepVerge having two directors in common.

 

At the time of entering into the MFSA, the independent directors (being all
the directors of DeepVerge save for Gerard Brandon and Nigel Burton who are
also directors of Microsaic) considered, having consulted with the Company's
nominated adviser, that the terms of the MFSA and an initial order under its
terms were fair and reasonable insofar as the Company's shareholders are
concerned.  The independent directors also consider that the terms of the
Further Order are consistent with the terms of both the MSFA and the initial
order thereunder, and therefore considers the terms of the Further Order to be
fair and reasonable insofar as shareholders are concerned.

 

 DeepVerge plc                                   Gerard Brandon, CEO         +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

 

 

Market Abuse Regulation (MAR) Disclosure

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER
THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF
ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

About DeepVerge plc (www.deepverge.com (http://www.deepverge.com) )

DeepVerge is an environmental and life science group of companies that
develops and applies AI and IoT technology to analytical instruments for the
analysis and identification of bacteria, virus and toxins; Utilising
artificial intelligent data analytics to scientifically prove the impact of
skincare product claims on skin

 

About Modern Water (www.modernwater.com (http://www.modernwater.com/) )

Modern Water is the environmental division of DeepVerge that has developed and
commercialised cutting-edge technology, focused on monitoring of contaminated
water and decontamination of wastewater, making recycling of water more
efficient. Six countries across the world have legislated that Modern Water
monitoring test systems are written into their environmental protection
legislation. The division offers an automated real-time contamination
detection range of equipment, including Microtox(®) PD, for the
identification of SARS-CoV-2 hotspots and other pathogens in wastewater.

 

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