(Alliance News) - DeepVerge PLC on Tuesday saw shares jump after announcing that its proposed financing will also be accompanied by a wholesale change of its senior executives.
DeepVerge is a Dublin-based environmental and life science group that develops and applies artificial intelligence to analytical instruments for the analysis and identification of bacteria, virus and toxins.
DeepVerge shares were trading 37% higher at 2.92 pence each in London on Tuesday at midday.
On October 12, the group said it had been in talks with lenders, as its low share price meant there was "no guarantee" it could raise sufficient equity funds for upcoming loan repayments.
DeepVerge subsequently announced on Tuesday that the fundraising process, coordinated by its brokers Turner Pope, continues to progress despite challenging market conditions.
It also said that, in accordance with its promise to reorganise the board, it would be making the following changes to its management team effective upon the announcement of the proposed financing, though it still cannot guarantee the raising of sufficient equity funds.
Gerard Brandon will step down as chief executive, but will remain on the board as executive director with responsibility for the modern water division.
Nigel Burton will become interim chief executive while the company searches for a new group chief executive.
Fionan Murray will remain as executive director while Camillus Glover leaves. Glover will remain as chief financial officer only while DeepVerge searches for a new finance director.
A further independent non-executive director will be appointed as soon as practicable.
The company also addressed, on Tuesday, two historical related party transactions dating back to 2018 and 2019 respectively. Under AIM Rule 13, both of these transactions were required to have been notified at the time each was entered into.
The first concerned the extension of a service agreement with MediNova AG via a further work order, and the second concerned payments made to Dagmara Brandon, the wife of Gerard Brandon, for professional services relating to administration and management.
DeepVerge said it regretted the unintentional oversight resulting in these disclosures not being made on a timely basis and has implemented relevant, improved internal controls to prevent this from happening in the future.
By Holly Beveridge; hollybeveridge@alliancenews.com
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