REG - Microsaic Systems - Company Update

Microsaic SystemsAnnouncement

02/05/2024 07:00

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RNS Number : 9784M  Microsaic Systems plc  02 May 2024

2 May 2024

 

Microsaic Systems plc

 

("Microsaic" or the "Company")

 

Company update

 

Microsaic Systems plc (AIM: MSYS), the developer of micro-electronic
instruments and provider of Modern Water analytical solutions is pleased to
announce the following update.

 

On 27 March 2024, the Company announced that in Qatar, 27 Continuous Toxicity
Monitoring instruments ("CTMs") previously delivered by Modern Water are to be
installed by our local distributor to monitor Doha's public water system
continually by online testing. Microsaic is pleased to confirm that the
Company has now received a new purchase order to the value of €571k from
this local distributor to supply associated equipment and consumable items for
the existing CTM instruments. We expect most of the goods to be delivered
within 2024 with invoicing expected to start by the end of June. The goods
being supplied for the CTMs include MicroTox® reagents which are manufactured
exclusively by the Company and tubing kits for which manufacture is outsourced
and the supply of which is also exclusively from the Company. This represents
a strong source of recurring revenue as the ongoing operation of the CTMs
requires continual supply of these essential consumable items.

 

Building on its existing platform in Qatar, the Company is now targeting the
wider Gulf States region to supply its broad range of fluid and water testing
solutions. Microsaic will target this market through a combination of its
newly acquired Modern Water continuous monitoring technology for rapid online
detection of toxins, together with the detailed analysis that can be provided
by the Company's miniaturised mass spectrometer 4500MiD® instrument. Many
Gulf States and other countries, particularly those that are moving towards
piped water distribution rather than supply in plastic bottles, have
difficulty in accurately monitoring the safety of potable (including
desalinated) water. Supply downtime due to water contamination is a serious
risk for all water-stressed countries and the Company is well positioned to
provide a 'total' testing solution for this issue.

 

Microsaic's existing stock of MicroTox® reagent is already being shipped to
customers and the laboratory in York England is preparing to start
manufacturing new MicroTox® reagent next week, to replenish stock and to meet
sales demand.

 

Given a growing enquiry and sales pipeline developing for the supply of the LX
and FX CTM instruments, Microsaic has recently commissioned GX Group in Usk,
Wales, its outsourced manufacturer, to modify and update the electronics that
control these instruments. This will streamline the manufacturing process for
equipment sales expected to start later this year and broadens the supply
chain, increasing the profitability of the instruments.

 

The Company continues to build on its analytical testing business model by
integrating the recently acquired Modern Water and Microsaic Systems
technologies. This model provides solutions for toxicity testing ranging from
the increasing problem of monitoring water contamination to the detection of
PFAS (forever chemicals). Mass spectrometry is the only technology that can
monitor PFAS to the extremely low concentration levels announced by the US
Environmental Protection Agency on 10 April 2024, which varies from 10 parts
down to 4 parts per trillion depending on the PFAS chemical targeted.
Microsaic considers that its PFAS detector, built around the 4500MiD®, is an
ideally positioned detection solution. It is a compact, lower cost and easily
operated low energy instrument which can be sited at the point of testing for
customers as opposed to needing to transport samples to large,
energy-intensive and comparatively very expensive laboratory-based machines.
Microsaic continues to pursue its PFAS detector testing programme aimed at
equipment manufacturers and distributors, with the objective of positioning
the Company to take a leading position in the US market for PFAS detection and
monitoring together with dedicated partners.

 

Bob Moore, Acting Executive Chairman of Microsaic, commented:

 

"We are delighted to have signed a new purchase order with our local
distributor to supply consumables and associated equipment for our project in
Qatar. This demonstrates the determination of the Company to deliver on our
reset objectives and develop much wider analytical capabilities and solutions.
We intend to build on this by scaling up supply capabilities for our newly
acquired wider range of instruments and their consumable kits based on proven
technology. Increasing the installed base of equipment over time will support
the growth of recurring income streams from consumables."

 

 

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation ("MAR") which forms part of UK law by
virtue of the European Union (Withdrawal) Act 2018; as amended.  Upon
publication of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR.

 

The person responsible for arranging the release of this Announcement on
behalf of the Company is Bob Moore, Acting Executive Chairman of the Company.

 

 

 Microsaic Systems plc                            +44 (0) 20 3657 0050

 Bob Moore, Acting Executive Chairman             via TPI

 Singer Capital Markets (Nominated Adviser)       +44 (0)20 7496 3000

 Aubrey Powell / Angus Campbell / Oliver Platts

 Turner Pope Investments (TPI) Limited (Broker)   +44 (0) 20 3657 0050

 Andy Thacker / James Pope

 

About Microsaic Systems and Modern Water

Microsaic has over 20 years' experience in microelectronics and development of
instrumentation and having acquired the Modern Water business has reset,
diversified and widened its capabilities into broader based analytical
equipment supply and services. The Company has an extensive existing and newly
acquired innovative patent portfolio in industry-leading technology designed
and developed for "Industry 4.0" application serving markets in diversified
Industries, Human and Environmental Health. Microsaic's micro-mass
spectrometer system and water testing solutions enables analytical detection
and characterisation at the point-of-need, whether within a mobile testing
capability, conventional laboratory setting, or within a bioprocessing
facility for continuous detection of data at multiple steps in the process
workflow.

 

Microsaic's products and solutions are commercially available through global
markets via a network of regional and local partners, targeting its core
laboratory, manufacturing and point-of-need applications.

 

 

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