Microsaic Systems granted exclusivity period as it updates on proposed Modern Water acquisition
Surrey-based tech firm Microsaic Systems, which develops spectrometers and provides other system solutions, has updated on its proposed acquisition of the Modern Water business of DeepVerge plc.
Microsaic has been granted a period of exclusivity in respect of the potential purchase of certain assets of the business - broadly these are equipment for the laboratory-based manufacturing of bio-reagents used in related water testing equipment.
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The assets also include all intellectual property (IP) and rights to the related testing equipment including LX, FX and Continuous Toxic Measuring (CTM) machines and water membrane technology.
The exclusivity period is aimed at providing Woking-based Microsaic with time to conclude its due diligence, obtain binding commitments for its revised fundraising, and to negotiate and sign a detailed sale and purchase agreement with DeepVerge. There is no guarantee that the transaction will occur, Microsaic noted.
It comes after Microsaic made to DeepVerge an indicative outline proposal to purchase the business for £100,000 in cash, payable on completion.
Funding for the acquisition is expected to come from the revised fundraising. Microsaic has adjourned a general meeting which had been convened to enable it to undertake the share capital re-organisation, amend its articles and obtain the necessary authorities from shareholders to implement its fundraising requirements.
Microsaic revealed that it would "shortly provide an update" to shareholders in relation to the revised date for the general meeting, and the expected timetable relating to the revised fundraising and the proposed acquisition.
"Microsaic has recently realised a small amount of cash from the sale of tangible assets, and as a result has sufficient cash runway for the duration of the exclusivity period, during which it also expects to conclude the revised fundraising as well as the transaction," it added in the stock market statement.
"Completion remains subject, inter alia, to the restoration of the company's shares to admission to trading on AIM, and other factors as described in the announcement of 4 December 2023," it said.
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