Integumen PLC 3 year $3.75m (GBP3.12m) bacteria prod'n agreement (5261G)

TIDMSKIN

RNS Number : 5261G

Integumen PLC

18 March 2020

AIM share code: SKIN

18 March 2020

Integumen PLC

("Integumen" or "Company")

Integumen signs three year $3.75m (GBP3.12m) bacteria production agreement with Modern Water plc

Labskin Laboratories to expand 100% in Q2 2020 to meet increased demand

Integumen announces that it has signed a three-year revenue-sharing, manufacturing agency agreement ("Agreement") with Modern Water plc ("Modern Water") to manufacture and provide logistic support for the Modern Water's monitoring reagent consumables. The Agreement is for $1.25m (GBP1.04m) per year for 3-years, worth a total of $3.75m (GBP3.12m). The revenue share split is 60% / 40% in favour of Modern Water, after costs, and is subject to rolling 12-month extensions thereafter.

In addition, Integumen confirms a further 100% expansion of its purpose-built product and development laboratories in York, UK, to 6,000 square feet, adding six more laboratory rooms to meet growing demand. Two of those laboratories will be allocated to the production of Modern Water's bacteria reagent. As part of the Agreement, a further three full-time laboratory technicians will be recruited to join Integumen's team of highly skilled scientific specialists in bacteria, virus and toxins.

Gerard Brandon CEO Integumen plc commented:

"We are delighted to announce the continued expansion of our laboratories and to be able to provide European bacteria reagent manufacturing capacity and logistic support to Modern Water's sales, marketing and distribution in the US, EU, China and Japan. This Agreement demonstrates demand for Integumen's services and our capacity to maintain exponential growth regardless of the uncertainties of Brexit or the Coronavirus. In addition to production of the bacteria reagents, our AI division is exploring options to develop data analytic tools for Modern Water monitoring equipment, with the potential to add higher-value bolt-on real-time alert services leading to increased revenue per client."

Simon Humphrey CEO of Modern Water, commented:

"This Agreement is a water-shed moment for Modern Water. We are moving from a self-contained production, sales, marketing and distribution company to a collaborative, cooperation and partnership business model. This immediately gives Modern Water access to state-of-the art laboratories in the UK without the need for capital expenditure. Integumen's superior development and manufacturing capabilities will enable us to rapidly grow our existing network of sales, marketing and distribution channels, delivering the quality of product we are synonymous with, whilst lowering operational costs."

 
                                                                  [phone] 
 Integumen plc                      Gerard Brandon, CEO            648 
 
 SPARK Advisory Partners Limited    Neil Baldwin/Andrew           [phone] 
  (Nominated Adviser)                Emmott                        8974 
 
 Turner Pope Investments (TPI)                                    [phone] 
  Limited (Broker)                  Andy Thacker/Zoe Alexander     0050 
 

Notes:

Gerard Brandon is CEO, Executive Director and a shareholder of Integumen and is also Non-Executive Chairman and shareholder of Modern Water. Given this conflict of interest, Gerard is not regarded as independent and has taken no part in the Company's consideration or the decision to enter into the Agreement with Modern Water. Ross Andrews, Non-Executive Chairman, Fin Murray, Executive Director, and Camillus Glover, Executive Director, are regarded as independent and have evaluated and agreed the final terms of the Agreement.

About Integumen plc

Integumen is a scientific research and AI-as-a-Service company focused on production and analysis of bacteria, virus and toxins utilising artificial intelligent data analytics in regulatory technology, from scientifically proving the impact of skincare product claims on skin microbiome for top 10 global cosmetic company clients to remotely detecting water contamination in real-time.

About Modern Water

Modern Water was established in 2006 to develop and commercialise water recovery technologies to counter water crisis problems arising from climate change and a growing global population. Having invested GBP20m over the last 14 years, the results comprise of a robust patent portfolio in cutting-edge technology, focussed 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.

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March 18, 2020 03:00 ET (07:00 GMT)