Deepverge PLC Accelerated Restructuring (1351H)

TIDMDVRG

RNS Number : 1351H

Deepverge PLC

22 November 2022

DeepVerge PLC

("DeepVerge" or "Company")

Accelerated Restructuring

DeepVerge (AIM: DVRG) announces an organisational restructure of its environmental and life science divisions to meet the growth in demand and maximise the opportunities that lie ahead. Modern Water will focus primarily on markets in China, South Asia and EMEA. Labskin and Skin Trust Club will primarily target the North American market.

Over the past 24 months Modern Water has transitioned from traditional unit sales of standalone monitoring equipment to fully integrated solution sales, underpinned by data automation and AI. The result has been a number of GBP1m+ contracts with significant regional partners on four continents.

The full integration of Glanaco into Modern Water will create two sub-divisions within Modern Water - a solutions division for integrated solution sales and an equipment, assembly and logistics division run by Glanaco. Modern Water will focus primarily on markets where there is regulatory driven need for clean water.

Labskin and Skin Trust Club business units will transfer to Rinocloud Limited, the software and AI company acquired by DeepVerge in May 2019. Rinocloud is focused on the use of AI for analysis of aggregated microbiome data extracted from human skin and environmental water, soil, flora and fauna. Following the recently announced material wins with IARPA, NOAA and Georgia Ports, this business will primarily be focused on and in the North American market.

It is expected that this restructuring will also result in cost savings for the Company of up to GBP2.0m on an annualised basis. The incremental cash costs of implementing the reorganisation are not expected to exceed GBP0.2m. The Company will seek to minimise the impact of these measures on the workforce, however potential redundancies may need to be considered in some areas of the business. The anticipated result of this restructuring is the Company being in a stronger and healthier position to execute the more focused strategy.

Further to the notification of 14 November 2022, and as anticipated, the Company confirms it has transferred the requisite funds from the recent fundraising to Riverfort to settle all outstanding amounts under its loan facility.

Nigel Burton, CEO of DeepVerge plc commented:

" This restructuring will enable the Company to build on the unrealised value created within both business divisions in order to maximise shareholder value."

For further information, please contact:

Enquiries:

 
 DeepVerge plc              Nigel Burton, CEO     [phone] 
 
 SPARK Advisory Partners 
  Limited 
  (Nominated Adviser)       Neil Baldwin          [phone] 
 
 Turner Pope Investments 
  (TPI) Limited             Andy Thacker/James 
  (Broker)                   Pope                 [phone] 
 

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November 22, 2022 02:00 ET (07:00 GMT)