Microsaic Systems - Funding & Operational Update, Intention to Delist
03/11/2023 13:32
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RNS Number : 3823S Microsaic Systems plc 03 November 2023
3 November 2023
Microsaic Systems plc
("Microsaic" or the "Company")
Funding and operational update
Intention to delist
The Company announced on 26 and 29 June 2023 that it was likely that the
Company would need to raise further working capital in Q3 2023. On 25
September 2023, Microsaic further announced that it was evaluating
alternatives including discussions with several parties about strengthening
the balance sheet with the aim of concluding a fundraising within its extended
runway to mid-November.
Despite a number of expressions of interest, none of the discussions have
reached a successful conclusion with the current cost base. The Company has
therefore begun a very significant cost reduction exercise, including
regrettably a consultation period with employees which is likely to result in
all staff being made redundant with effect from 3 December 2023.
The cost reduction process is, however, expected to result in the Company
remaining as an operating business, with access to sufficient resources
(including external contractors) to maintain production of the current mass
spectrometer machines and the continuation of existing trading relationships.
Ongoing activities are expected to include recently redesigned ProteinID
technology which has undergone internal testing ahead of commercial field
trials, and which the Company now expects to bring to market through a
partnership approach in 2024.
The cost reduction plans include the Company's intention to cancel admission
to trading of its shares on AIM ("Delisting"), subject to shareholder approval
at a general meeting, notice of which is expected to be published as soon as
reasonably practicable. This action is being taken to minimise costs and
preserve cash resources in the continuing business. The Company will continue
to meet its obligations under the AIM Rules for Company until cancellation has
taken effect. The Company is also exploring alternative 'matched bargain
facilities' to enable investors to trade in its shares following the intended
Delisting, although the timing for implementation and details of operation of
such a facility are not yet known, and the facility could, if implemented, be
withdrawn in future at the Company's discretion.
Microsaic expects that the cost reductions being made will enable it to
publish its annual report and accounts for the year ended 31 December 2022
("FY22") on a going concern basis, although the timing of this is imprecise
and remains subject to audit sign-off. As a result of this uncertainty and the
additional costs associated with concluding the FY22 audit and with publishing
interim accounts to June 2023 as a publicly quoted company, the Company does
not currently consider that it will be in a position to seek reinstatement to
trading of the Company's shares on AIM in before the Delisting occurs.
The Company will continue to seek additional capital as a private company,
both to support working capital needs and potentially also to support growth
initiatives. To the extent possible, Microsaic would consider mechanisms to
allow existing shareholders to participate in such fundraising event(s).
Alternate transactions including business combinations, joint ventures and
licensing arrangements would also be considered.
As at 1 November 2023, the Company has cash in the bank of approximately
£160k with no debt, and continues to meet its obligations as they fall due.
Further information on the effects of the proposed Delisting on the Company
and its implications for shareholders will be provided in the circular being
prepared to give notice of the general meeting ("GM") required to give effect
to the Delisting (the "Circular").
Bob Moore, Executive Chairman, commented: "The decision to embark on these
radical cost reductions has been very difficult, but is the only way to ensure
the continuation of the Company and seek to return any value in the future
from the significant investment of time and money since the Company was
founded. The Board is grateful for the contribution that all staff have made
to the development of the Company and our new technologies and services,
particularly during the current difficult period."
Further announcements will be made as appropriate.
The following indicative timetable for cancellation should be taken as a
guide, with confirmation of expected dates to follow in the Circular.
Publication of the Circular online (and posting in hard
copy) 8 November 2023
GM to approve the Delisting
24
November 2023
Effective date of cancellation from Admission via Dealing Notice
4 December 2023
Enquiries:
Microsaic Systems plc +44 (0)1483 751 577
Bob Moore
Executive Chairman
Singer Capital Markets +44 (0)20 7496 3000
(Nominated Adviser & Joint Broker)
Aubrey Powell (Investment Banking)
Turner Pope Investments (TPI) Limited (Broker) +44 (0) 20 3657 0050
Andy Thacker / James Pope
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 Union (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. The
above-named director takes responsibility for the release of this
announcement.
About Microsaic (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. Microsaic is an
innovative company. Most recently the Company has developed an Acrylamide
detector for use in the food industry and a ProteinID detector for the
biopharma industry that will greatly reduce the manufacturing wastage costs by
early detection of expensive product failure throughout the biopharmaceutical
drug manufacturing process. For environmental monitoring, Microsaic has
developed a method to analyse perfluroalkyl-and polyfluoroalkyl (PFAS)
substances, otherwise known as 'forever chemicals' using its mass
spectrometer. This equipment can analyse water samples and determine whether
PFAS concentrations are above legal thresholds with novel mobile testing
capability. All of these new products are at the final stage of development
and expect to be released to the market in 2024.
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