RNS out -Microsaic signs Heads of Terms with DeepVerge15 Feb 2021 07:20
Mon, 15th Feb 2021 07:00
RNS Number : 0250P
Microsaic Systems plc
15 February 2021
15 February 2021
Microsaic Systems PLC
("Microsaic" or "Company")
Microsaic signs Heads of Terms with DeepVerge plc for initial order and investment infront-line diagnostic test equipment with potential total value of up to £250,000
Microsaic joins water monitoring ecowaterOS Consortium
Microsaic, (AIM: MSYS) the micro-engineering, miniaturised chip-based mass spectrometry producer for point-of-need analytical detection, announces that it has signed a non-binding Heads of Terms with DeepVerge plc (AIM: DVRG) ("DeepVerge") to enter a multi-year Framework Services Agreement ("Agreement"). Under the Agreement, which is expected to be signed on or before 31 March 2021, Microsaic will supply miniaturised mass spectrometry equipment and services on a non-exclusive basis across DeepVerge's sales, marketing and distribution channels for quality and contamination detection in a range of markets. These include Human, Environmental Health and Diversified Industries, including point of need and laboratory solutions in, chemical, biochemical, biofuel, biodegradable plastic, biologics and waste-water treatment industries.
Under this Agreement, Microsaic will transition its business model to a revenue-sharing, collaborative and commercial partnership strategy. The Heads of Terms include provision for an initial order by DeepVerge for two units, each worth £50,000, plus a commitment of up to £150,000 by DeepVerge plc to install pilot facilities in DeepVerge's York laboratories. Under the Agreement, Microsaic shall pay to DeepVerge a commission based on the revenues received from customers introduced by DeepVerge.
Microsaic is also joining the ecowaterOS Consortium, an end-to-end water contamination detection and decontamination solutions provider network, for real-time monitoring and detection of contaminated water.
The Agreement, if entered into, would constitute a related party transaction for the Company under AIM Rule 13 and as such, further information in accordance with the requirements of AIM Rule 13 will be provided accordingly. Gerard Brandon and Nigel Burton, Non-executive Chairman and Non-executive Director respectively, are both directors of DeepVerge and, notwithstanding the non-binding nature of the Heads of Terms, have abstained from participating in the consideration of and entry into the Heads of Terms by Microsaic.
Glenn Tracey, CEO of Microsaic, commented:
"We are delighted to provide our knowledge and expertise built over 20 years on the miniaturisation of microchip-based equipment. We believe that the integration of our technology will enhance the accuracy and efficiencies of existing detection equipment of the ecowaterOS multi-continental consortium. We look forward to joining the consortium and playing our role to help mitigate the global water crisis and to bring our detection me
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