REG - Deepverge PLC - Response to Market Speculation

DeepvergeAnnouncement

12/10/2022 07:16

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RNS Number : 6167C  Deepverge PLC  12 October 2022

12 October 2022

 

DeepVerge PLC

 

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

 

Response to Market Speculation

DeepVerge plc (AIM: DVRG), notes recent market speculation regarding
forthcoming loan repayments and a potential equity fund raising.

The Company announced on 17 March 2022 that it had secured a mezzanine loan
facility ("Facility") of up to £25 million with Riverfort Global
Opportunities PCC Limited and YA II PN Limited ("the Lenders"), of which an
initial £4m was drawn down. Monthly repayments are scheduled to commence with
the initial repayment of £0.5m due on 16 October 2022.

The Company and its Broker recently began the process of seeking to raise
equity, not only to repay and retire the Facility but also to fund
sufficiently the Company's working capital requirements to enable the Company
to reach profitability and cash generation during 2023. However, particularly
given the impact of the above-mentioned speculation on the share price, and
although the institutional equity roadshow is progressing well with positive
feedback, there can be no guarantees that sufficient equity funds can be
raised, nor the terms thereof.

The Company has been in talks with the Lenders for some time and it has been
agreed that there will be no Event of Default relating to any repayments that
have been or may be missed up to 14 November 2022 provided the balance of the
principal of the funding from the Lenders and the interest to accrue until the
original maturity date of 16 March 2023 is made in full immediately following
the proposed equity fund raise.

In parallel with seeking to strengthen the balance sheet, the Company is in
the process of strengthening and reorganising the Board to reflect the recent
fast pace of growth and that expected in 2023 and beyond.

In addition, as announced on 20 July 2022, the Company is exploring a range of
options to meet the unprecedented demand for Labskin services and the
accelerating growth of Skin Trust Club.

Further announcements will be made in due course.

 DeepVerge plc                                   Ross Andrews, Chairman      c/o SPARK
 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)

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

 

 

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