TIDMDVRG

RNS Number : 2548T

Deepverge PLC

24 March 2021

24 Mar 2021

DeepVerge PLC

("DeepVerge" or "Company")

DeepVerge and Microsaic Systems plc sign three-year Technology and Commercial Agreement

Integrated "Lab to Sample" laboratory and "Point of Care" diagnostic tests

to transform healthcare and environmental health

DeepVerge (LSE:DVRG.L), the environmental and life science AI company , announces that, further to the notification of 15 February 2021, it has signed a full technical and commercial agreement ("Agreement") with Microsaic Systems plc (AIM: MSYS) ("Microsaic"). Under this Agreement, with DeepVerge's Innovenn subsidiary, Microsaic will supply regulatory approved, CE Mark, miniaturised mass spectrometry equipment and services on a non-exclusive basis across DeepVerge's global sales, marketing and distribution channels, delivering portable solutions for environmental contamination detection and healthcare diagnostic evaluation of samples.

DeepVerge will introduce AI data analytics into Microsaic's existing Mass Spectrometry data capture capabilities to fast track the MicrotoxBT breathalyser, which is used to detect the Spike Protein of the SARS-CoV-2 virus, to deliver a "Point of Care" diagnostic solution at the GP's clinic. With biomarker binding agents capable of detecting up to 40 diseases on the human breath, many of which include cancer, neurodegenerative, respiratory and metabolic conditions, it has the potential to enable swift referral for serious conditions and at the same time reduce unnecessary doctor-to-hospital referrals and over-prescription of antibiotics, potentially dramatically lowering healthcare costs.

In addition, automated monitoring of remote "Lab to Sample" Environmental Health data creates a virtual laboratory at the site of detection in diversified chemical, bio chem ical, biofuel, biodegradable plastic, biologics, and waste-water treatment industries .

Key Terms of Agreement

DeepVerge will be a non-exclusive distributor for Microsaic products worldwide.

DeepVerge will purchase from the Microsaic product list and resell the products in Deepverge's sales channel.

DeepVerge has agreed that their minimum target order from Microsaic for Microsaic products will be GBP100,000 per year.

The term of the Agreement will be for three years, with the ability to extend.

DeepVerge has made an initial order to purchase from Microsaic three 4500 MID's (mass spectrometry equipment) for a total price of GBP100,000.

DeepVerge will allocate resources up to a value of GBP150,000 to install a pilot facility in DeepVerge laboratories in York.

DeepVerge and Microsaic have committed to future collaboration.

Current intellectual property will reside with each of Microsaic and DeepVerge, any jointly developed intellectual property will be owned in equal share.

Gerard Brandon, CEO of DeepVerge plc (and ecowaterOS member), commented:

"The collaboration, cooperation and teamwork across both companies over the last two months has been incredible. It has already contributed to cost reductions for both companies through complementary new hires, removing duplication, and brings an increase in revenue per client opportunity from new services from equipment that Microsaic already has approved for use. The combined result enables Labskin scientists to fully automate the production of bacteria reagents and the Modern Water division can immediately add remote higher quality analysis for clients, eliminating the need for transportation of samples back to laboratories. We have an exciting three years ahead for both companies."

Glenn Tracey, CEO of Microsaic, commented:

"Over 20 years, Microsaic has built the miniaturisation of microchip-based equipment, designed for point of need detection. This Agreement with DeepVerge brings a direct route to existing distribution channel partners so that we can finally have full access to a global market, where together, our vision is to solve real-world problems facing humanity. Additionally, the collaborations represent a turning point in front line detection in a number of application areas, which to date have remained untouchable by mass spectrometry technologies, and which therefore bring first mover advantage in these markets which have such a high demand right now."

Microsaic's technology has a very small footprint, very low maintenance and is specifically designed for front line use. Under this Agreement, Microsaic and DeepVerge will combine micro-engineering, software and AI based data analytics to offer automated "Internet of Things" ("IoT") analytical solutions to drive important decisions at manufacturing industry "Point of Need" and help GP clinic doctors make a faster diagnosis at "Point of Care".

As announced in February, Microsaic has joined the ecowaterOS Consortium, an end-to-end water contamination detection and decontamination solutions provider network, for real-time monitoring and detection of contaminated water. Developed by the Rinocloud division of DeepVerge plc, this is a consortium of partners operating a live dynamic water management system that supports the delivery of safe clear water from rivers to wastewater treatment plants, using Artificial Intelligence to provide instant alerts from remote sensors direct to stakeholders.

In other collaborations, DeepVerge and Microsaic will:

-- Augment the Modern Water (a division of DeepVerge) front line water analysis portfolio by adding a new portable real-time sewage monitoring capability, particularly for monitoring "organics" such as drugs of abuse and active pharmaceutical ingredients ("APIs").

-- C ollaborate on the detection of proteins and "bad actors" using Labskin's ground-breaking protein capture technology, and Microsaic's MS technology, which is ideally suited to bring the power of Mass Spectrometry to front line screening in Human and Environmental Health. To speed collaboration, Microsaic will shortly be co-locating its science and applications capabilities within the enlarged 9,000 square foot Labskin facility in York, England.

Related Party Agreement

Entering into the Agreement and the related orders constitute a related party transaction for the Company under AIM Rule 13, as DeepVerge directors Gerard Brandon (CEO) and Nigel Burton (Non-executive Director) are also non-executive directors of Microsaic.

Gerard Brandon and Nigel Burton abstained from participating in the consideration of and entry into the Agreement by Microsaic. The Directors of DeepVerge (excepting Messrs Brandon and Burton) consider, having consulted with SPARK Advisory Partners Limited, the Company's nominated adviser, that the terms of the Agreement are fair and reasonable insofar as its shareholders are concerned.

 
                                                      +44 (0) 1904 40 
 DeepVerge plc              Ross Andrews, Chairman     4036 
 
 SPARK Advisory Partners 
  Limited                   Neil Baldwin/Andrew       +44 (0) 113 370 
  (Nominated Adviser)        Emmott                    8974 
 
 Turner Pope Investments    Andy Thacker/Zoe          +44 (0) 20 3657 
  (TPI) Limited (Broker)     Alexander                 0050 
 

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 and the data they generate, for the analysis and identification of bacteria, virus and toxins. DeepVerge is utilising artificial intelligent data analytics to prove scientifically the impact of skincare product claims on the skin microbiome for clients including most of the top 20 global cosmetic companies and to detect remotely, and identify in real-time, dangerous pathogens in wastewater treatment plants, drinking water, rivers, lakes and reservoirs.

About Microsaic (www.microsaic.com)

Microsaic floated on AIM in 2011 to develop and commercialise micro-engineering chip-based mass spectrometry equipment. Having invested c.GBP30m over 20 years of development, Microsaic has a robust and innovative patent portfolio in cutting-edge technology designed and developed for "Industry 4.0" application. Microsaic serves markets in Human Health, Environmental Health and Diversified Industries. Microsaic's system solutions enable analytical detection and characterisation at the point-of-need, whether within a conventional laboratory setting, or within a bioprocessing facility for continuous mass spectrometer detection data at multiple steps 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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March 24, 2021 03:00 ET (07:00 GMT)

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