Further order from DeepVerge

RNS Number : 3561V

Microsaic Systems plc

13 December 2021

 

13 December 2021

Microsaic Systems plc

("Microsaic" or the "Company")

Microsaic to supply mass spectrometry equipment for DeepVerge Modern Water Mobile Services for pathogen detection, adding the detection of forever chemicals in soil and water

Microsaic (AIM: MSYS), is pleased to announce that it has received a further order from DeepVerge plc ("DeepVerge") for additional miniaturised mass spectrometry ("MS") equipment and services (the "Order"). The value of the Order is approximately £262k and part of the order (the "Further Order") is being fulfilled pursuant to the Company's existing Framework Services Agreement (the "Agreement") with DeepVerge, as announced on 24 March 2021 and referenced in the trading update on 6 July 2021 referring to a subsequent order under the Agreement.

Additionally, the Order includes a number of units of Microsaic's newly developed solid phase extraction - liquid chromatography ("SPE-LC") Systems, which do not form part of the Agreement, and related consumables which will be used for quality and contamination detection in a range of markets including water and soil analysis (the "New Order"). As announced on 6 July 2021, Microsaic had previously loaned this equipment to DeepVerge, to enable an early evaluation of certain technical aspects of its potential use in detecting a range of chemical contaminants, referred to as Chemicals of Emerging Concern ("CEC"), including forever chemicals.

It is expected that equipment with a value of up to approximately £94k will be shipped by Microsaic in the current financial year, with the remainder of the Order to be fulfilled as soon as practicably possible in 2022.

The SPE-LC System is expected to be used to detect CECs  in water, and will be supplied to DeepVerge to 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. Further information on the scope of the system can be found in the announcement by DeepVerge released today.

Glenn Tracey, CEO of Microsaic, commented:

"This  order once again exemplifies the close working partnership between DeepVerge and Microsaic, and our aligned approach to the application of miniaturised but powerful detection technologies, used at the point of need."

Related party transactions

The Further Order has a value of approximately £109k and this constitutes a related party transaction under Rule 13 of the AIM Rules for Companies ("AIM Rules"). At the time of entering into the Agreement, the independent directors, being Glenn Tracey and Bevan Metcalf, considered, having consulted with the Company's nominated adviser, that the terms of the Agreement, were fair and reasonable insofar as the Company's shareholders are concerned. The independent directors also consider the terms of the Further Order are consistent with both the terms of the Agreement and previous orders under the Agreement, and therefore they consider the terms of the Further Order to be fair and reasonable insofar as shareholders are concerned.

The New Order has an approximate value of £153k and comprises the additional SPE-LC Systems and related consumables, which are outside the scope of the Agreement. The New Order also constitutes a related party transaction pursuant to Rule 13 of the AIM Rules.

The Company proposes to amend the Agreement such that the provision of the new SPE-LC System, and additional goods and services which it may develop and supply in future can be supplied to DeepVerge 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 Microsaic and DeepVerge 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 independent directors, being Glenn Tracey and Bevan Metcalf, consider, having consulted with the Company's nominated adviser, that the terms of the New Order and the proposed amendments to the Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:
Microsaic Systems plc Glenn Tracey, CEO Bevan Metcalf, FD	[phone]
Singer Capital Markets (Nominated Adviser & Joint Broker)	[phone]
Aubrey Powell / George Tzimas (Investment Banking)
Turner Pope Investments (TPI) Limited (Joint Broker) Andy Thacker / James Pope	[phone]

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. 

 

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