Update

Deepverge PLC

13 December 2023

 

13 December 2023

DeepVerge plc

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

Update

Introduction

The Board provides an update to shareholders.

Potential disposal of assets

Further to the previous notification on 14 September 2023, the Board has made progress with potential buyers of certain assets and intellectual property owned within  the Modern Water and Labskin business units and hopes to be able to agree terms for the sale of these various assets during the next month.

Whilst there can be no certainty that current discussions will result in a transaction or transactions, it is now clear to the Board that even if both sets of assets are sold, at the values being discussed with potential buyers, insufficient value will be realised to avoid the closure or administration of the relevant Group subsidiaries.

DeepVerge plc

Further to the notification of 26 June 2023, DeepVerge plc, the holding company which neither trades nor has operating revenues, currently has around £0.3m of net liabilities. Given the situation referred to above, uncertainty remains as to whether the Company will have sufficient funds to pay its debts as they fall due.

Financial reporting

The Board does not expect the Company to be in a position to publish its report and accounts for the year to 31 December 2022, nor its interim results for the 6 months ended 30 June 2023, in time for the shares to be readmitted to trading on AIM before the end of 6 months since suspension on 26 June 2023.

Cancellation of Admission to trading on AIM

The cancellation of the admission of the Company's shares to trading on AIM ("Cancellation") is expected therefore to take place with effect from 7.00 a.m. on 27 December 2023.

Future of the Group's businesses

Given the circumstances set out above, the Board is working in contemplation of appointing administrators or a liquidator, as appropriate, to the Company and certain subsidiaries. It is engaged with relevant professionals to determine the most appropriate methods of winding up the Company's group businesses.

Further updates will be given as appropriate.

DeepVerge plc	Nigel Burton, Interim CEO	[phone]
SPARK Advisory Partners Limited (Nominated Adviser)	Neil Baldwin	[phone]
Turner Pope Investments (TPI) Limited (Broker)	Andy Thacker/James Pope	[phone]

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.

 

END