12 October 2022
DeepVerge PLC
("DeepVerge" or "the Company" or "the Group")
Response to Market Speculation
DeepVerge plc (AIM: DVRG), notes recent market speculation regarding forthcoming loan repayments and a potential equity fund raising.
The Company announced on 17 March 2022 that it had secured a mezzanine loan facility ("Facility") of up to £25 million with Riverfort Global Opportunities PCC Limited and YA II PN Limited ("the Lenders"), of which an initial £4m was drawn down. Monthly repayments are scheduled to commence with the initial repayment of £0.5m due on 16 October 2022.
The Company and its Broker recently began the process of seeking to raise equity, not only to repay and retire the Facility but also to fund sufficiently the Company's working capital requirements to enable the Company to reach profitability and cash generation during 2023. However, particularly given the impact of the above-mentioned speculation on the share price, and although the institutional equity roadshow is progressing well with positive feedback, there can be no guarantees that sufficient equity funds can be raised, nor the terms thereof.
The Company has been in talks with the Lenders for some time and it has been agreed that there will be no Event of Default relating to any repayments that have been or may be missed up to 14 November 2022 provided the balance of the principal of the funding from the Lenders and the interest to accrue until the original maturity date of 16 March 2023 is made in full immediately following the proposed equity fund raise.
In parallel with seeking to strengthen the balance sheet, the Company is in the process of strengthening and reorganising the Board to reflect the recent fast pace of growth and that expected in 2023 and beyond.
In addition, as announced on 20 July 2022, the Company is exploring a range of options to meet the unprecedented demand for Labskin services and the accelerating growth of Skin Trust Club.
Further announcements will be made in due course.
| DeepVerge plc | Ross Andrews, Chairman | c/o SPARK |
| 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
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