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DeepVerge enters into Memorandum of Understanding ("MoU") for a Joint Venture with China Resources Environmental Protection Development Limited
China Resources will own 51% and DeepVerge will own 49% of the share capital
MoU covers the manufacture, assembly and sale of environmental monitoring equipment
DeepVerge PLC
("DeepVerge" or "the Company")
YORK, United Kingdom, April 28, 2021 (GLOBE NEWSWIRE) -- DeepVerge (LSE:DVRG.L), the environmental and life science AI company, announces that it has signed a non-binding Memorandum of Understanding ("MoU") with China Resources Environmental Protection Development Limited ("China Resources"), a wholly-owned subsidiary of China Resources Group, to enter into a Joint Venture ("JV") for the manufacture, assembly and sale of environmental monitoring equipment, with a view to future development of smart environmental platforms, equipment/devices and network management software capability.
On or before closing, the parties will negotiate, agree, and execute a number of definitive agreements for the Joint Venture which are expected to be signed by 30 June 2021 with the JV becoming operational by 1 September 2021. DeepVerge would own 49% of the JV and China Resources 51%. The JV parties are currently undertaking a scoping exercise to assess the level of start-up costs and non-cash consideration to be introduced by each partner. The definitive agreements will address the following subject matters:
The parties will agree and execute a commercial framework agreement which will incorporate commercial terms negotiated and agreed between the parties.
DeepVerge will negotiate, agree and execute a licence by DeepVerge (or a subsidiary of DeepVerge) of technology to the JV and a support agreement in respect of the technology.
JV will negotiate, agree and execute a reseller agreement with DeepVerge (or a subsidiary of DeepVerge) in respect of the manufactured products.
Gerard Brandon CEO DeepVerge plc commented:
"Today, the world needs big solutions to solve giant societal environmental problems. This joint venture is the most efficient route to deliver our world leading water technologies throughout the 23 provinces of China. A joint venture with a division of one of the world's largest natural resource groups can meet the growing demand for manufacturing and assembly of existing Microtox and Microtrace equipment for environmental monitoring across the rest of the world, that is struggling to manage a global health pandemic. By partnering with China Resources we can futureproof DeepVerge as a leading innovator of smart environmental platforms with AI, equipment/devices and network management software capability."
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.
DeepVerge plc | Gerry Brandon | +44 (0) 734 0055 648 |
SPARK Advisory Partners | Neil Baldwin/Andrew Emmott | +44 (0) 113 370 8974 |
Turner Pope Investments | Andy Thacker / Zoe Alexander | +44 (0) 20 3657 0050 |
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