Microsaic Systems plc Funding & Operational Update, Intention to Delist (4153S)
November 06 2023 - 2:00AM
UK Regulatory
TIDMMSYS
RNS Number : 4153S
Microsaic Systems plc
06 November 2023
6 November 2023
Microsaic Systems plc
("Microsaic" or the "Company")
Funding and operational update
Intention to delist
This is a repeat announcement of the RNS that was released on
Friday 3 November 2023, re-released for transparency.
The Company announced on 26 and 29 June 2023 that it was likely
that the Company would need to raise further working capital in Q3
2023. On 25 September 2023, Microsaic further announced that it was
evaluating alternatives including discussions with several parties
about strengthening the balance sheet with the aim of concluding a
fundraising within its extended runway to mid-November.
Despite a number of expressions of interest, none of the
discussions have reached a successful conclusion with the current
cost base. The Company has therefore begun a very significant cost
reduction exercise, including regrettably a consultation period
with employees which is likely to result in all staff being made
redundant with effect from 3 December 2023.
The cost reduction process is, however, expected to result in
the Company remaining as an operating business, with access to
sufficient resources (including external contractors) to maintain
production of the current mass spectrometer machines and the
continuation of existing trading relationships. Ongoing activities
are expected to include recently redesigned ProteinID technology
which has undergone internal testing ahead of commercial field
trials, and which the Company now expects to bring to market
through a partnership approach in 2024.
The cost reduction plans include the Company's i ntention to
cancel admission to trading of its shares on AIM ("Delisting"),
subject to shareholder approval at a general meeting, notice of
which is expected to be published as soon as reasonably
practicable. This action is being taken to minimise costs and
preserve cash resources in the continuing business. The Company
will continue to meet its obligations under the AIM Rules for
Company until cancellation has taken effect. The Company is also
exploring alternative 'matched bargain facilities' to enable
investors to trade in its shares following the intended Delisting,
although the timing for implementation and details of operation of
such a facility are not yet known, and the facility could, if
implemented, be withdrawn in future at the Company's
discretion.
Microsaic expects that the cost reductions being made will
enable it to publish its annual report and accounts for the year
ended 31 December 2022 ("FY22") on a going concern basis, although
the timing of this is imprecise and remains subject to audit
sign-off. As a result of this uncertainty and the additional costs
associated with concluding the FY22 audit and with publishing
interim accounts to June 2023 as a publicly quoted company, the
Company does not currently consider that it will be in a position
to seek reinstatement to trading of the Company's shares on AIM in
before the Delisting occurs.
The Company will continue to seek additional capital as a
private company, both to support working capital needs and
potentially also to support growth initiatives. To the extent
possible, Microsaic would consider mechanisms to allow existing
shareholders to participate in such fundraising event(s). Alternate
transactions including business combinations, joint ventures and
licensing arrangements would also be considered.
As at 1 November 2023, the Company has cash in the bank of
approximately GBP160k with no debt, and continues to meet its
obligations as they fall due. Further information on the effects of
the proposed Delisting on the Company and its implications for
shareholders will be provided in the circular being prepared to
give notice of the general meeting ("GM") required to give effect
to the Delisting (the "Circular").
Bob Moore, Executive Chairman, commented: "The decision to
embark on these radical cost reductions has been very difficult,
but is the only way to ensure the continuation of the Company and
seek to return any value in the future from the significant
investment of time and money since the Company was founded. The
Board is grateful for the contribution that all staff have made to
the development of the Company and our new technologies and
services, particularly during the current difficult period."
Further announcements will be made as appropriate.
The following indicative timetable for cancellation should be
taken as a guide, with confirmation of expected dates to follow in
the Circular.
Publication of the Circular online (and posting in hard copy) 8
November 2023
GM to approve the Delisting 24 November 2023
Effective date of cancellation from Admission via Dealing Notice 4 December 2023
Enquiries:
Microsaic Systems plc
Bob Moore
Executive Chairman +44 (0)1483 751 577
Singer Capital Markets
(Nominated Adviser & Joint Broker) +44 (0)20 7496 3000
Aubrey Powell (Investment Banking)
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 Union
(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. The above-named director
takes responsibility for the release of this announcement.
About Microsaic (www.microsaic.com)
Microsaic listed on AIM in 2011 to develop and commercialise
micro-engineering chip-based mass spectrometry equipment. Having
invested GBP30m over the last 20 years before and after the IPO,
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.
Microsaic's products and systems are commercially available
through global markets via a network of regional and local
partners, targeting its core laboratory, manufacturing, and
point-of-need applications. Microsaic is an innovative company.
Most recently the Company has developed an Acrylamide detector for
use in the food industry and a ProteinID detector for the biopharma
industry that will greatly reduce the manufacturing wastage costs
by early detection of expensive product failure throughout the
biopharmaceutical drug manufacturing process. For environmental
monitoring, Microsaic has developed a method to analyse
perfluroalkyl-and polyfluoroalkyl (PFAS) substances, otherwise
known as 'forever chemicals' using its mass spectrometer. This
equipment can analyse water samples and determine whether PFAS
concentrations are above legal thresholds with novel mobile testing
capability. All of these new products are at the final stage of
development and expect to be released to the market in 2024.
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END
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