Microsaic signs heads of terms for framework deal with DeepVerge

Micro-engineering chip-based mass spectrometry company Microsaic has signed a non-binding heads of terms with DeepVerge, it announced on Monday, to enter a multi-year framework services agreement.

The AIM-traded firm said that under the agreement, which was expected to be signed on or before 31 March, Microsaic would supply miniaturised mass spectrometry equipment and services on a non-exclusive basis across DeepVerge's sales, marketing and distribution channels for quality and contamination detection in a range of markets.

Those would include human, environmental health and diversified industries, including point-of-need and laboratory solutions in chemical, biochemical, biofuel, biodegradable plastic, biologics and waste-water treatment industries.

Under the agreement, Microsaic said it would transition its business model to a revenue-sharing, collaborative and commercial partnership strategy.

The heads of terms include provision for an initial order by DeepVerge for two units, each worth £50,000, as well as a commitment of up to £0.15m by DeepVerge to install pilot facilities in its York laboratories.

Under the deal, Microsaic would pay a commission to DeepVerge, based on the revenues received from customers introduced by DeepVerge.

Microsaic said it was also joining the ecowaterOS consortium, which it described as an end-to-end water contamination detection and decontamination solutions provider network, for real-time monitoring and detection of contaminated water.

“We are delighted to provide our knowledge and expertise built over 20 years on the miniaturisation of microchip-based equipment,” said chief executive officer Glenn Tracey.

“We believe that the integration of our technology will enhance the accuracy and efficiencies of existing detection equipment of the ecowaterOS multi-continental consortium.

“We look forward to joining the consortium and playing our role to help mitigate the global water crisis and to bring our detection methods to new clients through the current and any future threats to human and environmental health.”

At 1143 GMT, shares in Microsaic Systems were down 3.63% at 0.26p.