17 Dec 2021 17:00
17 December 2021
DeepMatter Group Plc
Business update and financing
DeepMatter Group Plc (AIM: DMTR, "DeepMatter", the "Group"), the international digital chemistry data company, today provides a business update and details on discussions in relation to equity financing.
Business update
The Group's interim results published on 22 September 2021, highlighted the increase in commercial traction with active users up 48 per cent and customers up to 40. It stated that DeepMatter is also working with five of the 10 largest pharmaceutical companies. Revenue increased to £0.7m and the Group saw a strengthened sales pipeline and continued growth in users and trials. As at 30 June 2021, DeepMatter had cash of £1.8m.
DeepMatter is now in advanced discussions to provide its DigitalGlassware® platform and data to Standigm Inc., a leading workflow artificial intelligence (AI) drug discovery company, based in South Korea with an increasing international footprint. Based on current discussions, the agreement is expected to generate mid six-figure revenue in the first 12 months. The Group expects to finalise the agreement over the coming weeks.
Financing discussions
The Group currently has cash of £0.4m, ahead of its biggest billing periods in Q1. However, the Directors concluded in Q4 2021 that the Group required further cash resources in order to execute on its strategy of customer acquisition and investing in revenue growth.
The Directors believe that it is critical for the long-term potential of the business to raise enough funds in order to invest significantly, capture market share and grow revenues. Without further cash resources, the Group would have to re-evaluate its strategy and outlook.
The Directors have engaged with existing and potential institutional investors over the past six weeks. However, there has been no conclusion as yet reached in relation to the amount of funds that can be raised or the pricing of any new equity issued. The Group believes it may be possible to secure a material equity investment, but that this would likely be at a significant discount to the current share price.
Shareholders should be aware that discussions remain ongoing with the Directors currently believing any equity funding will complete in Q1 2022. An update will be made as and when appropriate.
For more information, please contact:
DeepMatter Group PlcMark Warne, Chief Executive Officer 0141 548 8156
Canaccord Genuity Limited (Nominated Advisor and Broker) 020 7523 8000Bobbie Hilliam
Meare Consulting 07990 858548Adrian Duffield
About DeepMatter Group Plc
DeepMatter is building a unique, fully integrated digital chemistry cloud platform of chemical reaction data for scientists, who are working on early-stage chemical discovery & development.
DeepMatter is integrating technology with chemistry to enable scientists, principally in the commercial sector, to easily perform and optimise chemistry. It is building, structuring and analysing chemical reaction databases and using this substantial data for real-time innovation and productivity gains in the chemical industry - particularly pharmaceutical companies engaged in pre-clinical drug discovery & development. This data is also now enabling Artificial Intelligence (AI) driven chemical automation.
Visit: www.deepmatter.io and follow @deepmattergroup