30 Jun 2022 07:00
30 June 2022
DeepVerge PLC
("DeepVerge" or "the Company" or "the Group")
Modern Water Q2 orders exceed £3m post COVID restrictions in China & South Asia
New monitoring and membrane revenues secured in high value microchip fabrication sector
DeepVerge plc (AIM: DVRG), is pleased to announce that Modern Water has secured Q2 orders in excess of £3m in China and South Asia for delivery during the current financial year. Significant sales of water monitoring and membrane water recovery have been secured with Tier 1 partners. This includes a new vertical in the technology sector, specifically microchip fabrication manufacturers, opening up a very large new vertical worldwide market for the Modern Water division.
The Modern Water sales teams in US, the EU, China and South Asia have put strategies in place to diversify which has led to the opening up of new verticals and growth in new markets. This focus has resulted in a number of significant seven figure deals across the markets of South Asia and the Middle East.
Gerard Brandon CEO DeepVerge plc, commented:
"Chinese and South Asian markets have been challenging because our staff, customer staff, partner staff and staff of collaborators that we're in negotiation with, have been rolling in and out of lockdowns for the best part of two years. Whilst we have continued to generate business, communication between teams, as well as supply chains, has been challenging. However through our drive to build the business and the intensity of our marketing and selling strategy, mostly online, we are now seeing a rebound as a result of pent up demand which is putting the market back on track.
We changed the business model in Modern Water from selling lower ticket equipment to medium and large enterprise solution sales. Investment was targeted to upgrading existing Microtox and Microtrace equipment, adding more efficient data aggregation capabilities, interfacing with third party systems and integrating with large SCADA operational management systems. Sales focus has been to identify partners capable of making larger solution sales and training their staff to sell our new offering. This strategy is now gaining traction and we continue to build our presence as a world leading water testing solutions provider."
Related party transaction
DeepVerge's subsidiary, Innovenn UK Limited, has signed a second Statement of Work ("Further Order") with Microsaic Systems plc ("Microsaic") under the previously announced Manufacturing Services Framework Agreement ("MFSA") between the same parties. This contract has a value of approximately £600,000 and constitutes a related party transaction for DeepVerge under Rule 13 of the AIM Rules for Companies, by virtue of its size and Microsaic and DeepVerge having two directors in common.
At the time of entering into the MFSA, the independent directors (being all the directors of DeepVerge save for Gerard Brandon and Nigel Burton who are also directors of Microsaic) considered, having consulted with the Company's nominated adviser, that the terms of the MFSA and an initial order under its terms were fair and reasonable insofar as the Company's shareholders are concerned. The independent directors also consider that the terms of the Further Order are consistent with the terms of both the MSFA and the initial order thereunder, and therefore considers the terms of the Further Order to be fair and reasonable insofar as shareholders are concerned.
DeepVerge plc | Gerard Brandon, CEO
| +44 (0) 7340 055 648 |
SPARK Advisory Partners Limited (Nominated Adviser)
| Neil Baldwin/Andrew Emmott | +44 (0) 113 370 8974 |
Turner Pope Investments (TPI) Limited (Broker) | Andy Thacker/James Pope | +44 (0) 20 3657 0050 |
Market Abuse Regulation (MAR) Disclosure
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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
About Modern Water (www.modernwater.com)
Modern Water is the environmental division of DeepVerge that has developed and commercialised cutting-edge technology, focused on monitoring of contaminated water and decontamination of wastewater, making recycling of water more efficient. Six countries across the world have legislated that Modern Water monitoring test systems are written into their environmental protection legislation. The division offers an automated real-time contamination detection range of equipment, including Microtox® PD, for the identification of SARS-CoV-2 hotspots and other pathogens in wastewater.