19 Apr 2023 13:21
19 April 2023
DeepVerge plc
("DeepVerge" or "the Company" or "the Group")
Microsaic Creditor; update
DeepVerge (AIM: DVRG), the environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins, notes the notification issued by Microsaic Systems plc ("Microsaic") on 18 April 2023.
DeepVerge confirms that amounts are currently owed by DeepVerge group companies to Microsaic totalling approximately £1.4 million.
DeepVerge also confirms that a settlement plan ("Settlement Plan") has been proposed to Microsaic, the terms of which are substantially agreed, and that it has made an initial payment in line with that plan. In addition, DeepVerge confirms that Microsaic has continued to supply services to DeepVerge during 2023, and all amounts arising during the current financial year continue to be paid under normal 30 day terms, in line with commercial agreements between the two parties.
DeepVerge shares a common director, Nigel Burton, with Microsaic, and finalisation of the Settlement Plan will fall to be treated as a related party transaction, and will require notification, under AIM Rule 13.
DeepVerge currently expects this agreement to be agreed in due course - and until that point it is able to, and will continue to, pay amounts in line with the Settlement Plan as proposed.
Further to commentary in the Company's 17 April 2023 notification, at present the working capital position of DeepVerge is such that the sum total of its trade receivables (net of impairments) and cash balances together exceed the sum total of its trade creditors and other payable balances (with the amounts owing to Microsaic set out above included in this).
In addition, the Company has agreed payment plans, or payment phasings, with substantially all its creditors.
The Company is exploring funding options including trade finance as a stronger balance sheet would enable the Company to accelerate delivery of some existing contracts and increase confidence in seeking new business.
The Company will issue further announcements as required in line with the AIM Rules for Companies.
ENDS
DeepVerge plc | Nigel Burton, Interim CEO | +44 (0) 7785 234447 |
SPARK Advisory Partners Limited (Nominated Adviser) | Neil Baldwin | +44 (0) 113 370 8974 |
Turner Pope Investments (TPI) Limited (Broker) | Andy Thacker/James Pope | +44 (0) 20 3657 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 for the analysis and identification of bacteria, virus and toxins; Utilising artificial intelligent data analytics to scientifically prove the impact of skincare product claims on skin.
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