19 April 2022

Microsaic Systems PLC

("Microsaic" or "the Company")

Microsaic signs new manufacturing services framework
and an initial contract worth £400k with Innovenn UK Limited

Microsaic now supplying services for Multi-Sensor Upgrades
of Environmental and Human Health Diagnostic Equipment

Microsaic plc (AIM: MSYS) has signed a new framework agreement with, and an initial contract worth £400,000 from, Innovenn UK Limited, a division of DeepVerge plc ("DeepVerge"), to refine and miniaturise existing monitoring equipment for environmental and human health diagnostics (the "Manufacturing Services Framework Agreement" or "MSFA").

The MSFA framework sets out the terms and conditions for Microsaic to improve and manufacture certain DeepVerge products and to provide the design, assembly, quality, and project management functions necessary to produce and ship equipment based on DeepVerge approved specifications, design, and quality requirements.

The MSFA extends the parties' existing relationship which was formalised in the 3-year framework agreement announced on 24 March 2021[i], under which Microsaic supplies its own miniaturised mass spectrometry equipment and services on a non-exclusive basis across DeepVerge's global sales, marketing and distribution channels, for healthcare diagnostic and environmental health applications.¹

Further manufacturing services contracts with DeepVerge may follow under the new MSFA, subject to satisfactory execution of the initial contract and mutual agreement. 

The mutual goals under the MSFA include ensuring the timely availability of quality products and in the desired quantities, as well as meeting high workmanship and quality standards and ensuring delivery needs are met. Furthermore, DeepVerge and Microsaic will jointly strive to achieve value pricing consistent with prudent practices to balance costs and the availability of services materials.

Additional disclosure is made below in relation to AIM Rule 13.

Gerard Brandon, Acting Executive Chairman of Microsaic Systems plc, commented:

"Microsaic's business model has been transitioned to offer additional services which leverage the considerable depth and breadth of technical design, engineering and delivery expertise within its team. This new framework diversifies the Company's revenues beyond equipment sales of Mass Spectrometers. By offering the skillsets that created the smallest compact mass spectrometer in the world, partner customers such as DeepVerge can outsource their engineering development of existing and new monitoring equipment and concentrate on growing their business. This new agreement illustrates how Microsaic is able to access additional revenues from other innovative companies seeking a high quality product design, development and manufacturing service."

Related Party Transaction:

As set out above, an initial order for £400,000 has been placed in accordance with the terms of the MSFA under an agreed statement of work covering the specified supply of services and product.  This new contract falls outside the scope of the existing framework agreement between the two companies.

The MSFA and the associated new order constitute a related party transaction for the Company under AIM Rule 13, as Microsaic directors Gerard Brandon (Acting Executive Chairman) and Nigel Burton (Non-executive Director) are also Executive Chairman and Non-executive Director, respectively, of DeepVerge.

The independent director (Robert Moore) considers, having consulted with Singer Capital Markets as the Company's nominated adviser, that the terms of MSFA and the associated new contract are fair and reasonable insofar as the Microsaic shareholders are concerned.

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 Microsaic

Microsaic develops and commercialises micro-engineering chip-based mass spectrometry equipment. Microsaic has a robust patent portfolio in cutting-edge technology purpose built for "Industry 4.0" which enables analytical detection and characterisation at the point-of-need, whether within a human health environment, conventional laboratory setting, or within a bioprocessing facility for continuous mass spectrometer detection and monitoring of data at any step in the process workflow, or in frontline environmental monitoring

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.