Modern Water PLC Agreement signed with Integumen plc (5415G)
18 March 2020 - 6:00PM
UK Regulatory
TIDMMWG
RNS Number : 5415G
Modern Water PLC
18 March 2020
AIM share code: MWG
18 March 2020
Modern Water plc
("Modern Water" or "Company")
Modern Water signs $3.75m estimated value three-year production
agreement with Integumen plc
Modern Water, the global water crisis monitoring and solutions
provider, announces that it has signed a three-year revenue sharing
manufacturing agency agreement ("Agreement") with Integumen plc
("Integumen") to manufacture, and provide logistic support for, the
supply of the Company's water monitoring reagent consumables to
Monitoring Division clients on behalf of the Company. These
supplies have historically been manufactured by the Company. The
Agreement enables the Company to fulfil an order backlog of
approximately $665,000 which it is not currently able to meet. The
Agreement has an estimated value of $1.25m (GBP1.04m) per year for
3 years, worth a total of $3.75m (GBP3.12m), based on Modern
Water's historic sales levels of reagent consumables, although is
no guarantee that these revenue levels will be met. The revenue
share split is 60% / 40% in favour of Modern Water, after costs,
and is subject to rolling 12-month extensions thereafter.
Integumen has announced a further 100% expansion of its
purpose-built product and development laboratories in York, UK, to
6,000 square feet, adding six more laboratory rooms to meet growing
demand. Two of those laboratories will be allocated to the
production of Modern Water's bacteria reagent. As part of the
Agreement, a further three full-time laboratory technicians will be
recruited to join Integumen's team of highly skilled scientific
specialists in bacteria, virus and toxins.
Simon Humphrey, CEO of Modern Water, commented:
"This Agreement is a water-shed moment for Modern Water. We are
moving from a self-contained production, sales, marketing and
distribution company to a collaborative, cooperation and
partnership business model. This immediately gives Modern Water
access to state-of-the art laboratories in the UK without the need
for capital expenditure. Integumen's superior development and
manufacturing capabilities will enable us rapidly to grow our
existing network of sales, marketing and distribution channels,
delivering the quality of product we are synonymous with, whilst
lowering operational costs."
Gerard Brandon, CEO of Integumen, commented:
"We are delighted to announce the continued expansion of our
laboratories and to be able to provide European bacteria reagent
manufacturing capacity and logistic support to Modern Water's
sales, marketing and distribution in the US, EU, China and Japan.
In addition to production of the bacteria reagents, our AI division
is exploring options to develop data analytic tools for Modern
Water's monitoring equipment, with the potential to add
higher-value bolt-on real-time alert services leading to increased
revenue per client."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Modern Water plc Simon Humphrey, CEO +44 (0)20 3827 3439
Sandy Jamieson
Cairn Financial Advisers Liam Murray
LLP (Nominated Adviser) Ludovico Lazzaretti +44 (0)20 7213 0880
---------------------- ---------------------
Turner Pope Investments Andy Thacker / Zoe
(TPI) Limited (Broker) Alexander +44 (0) 20 3621 4120
---------------------- ---------------------
Notes:
Gerard Brandon is CEO, Executive Director and a 4.68%
shareholder of Integumen and is Non-Executive Chairman and a 1.99%
shareholder of Modern Water. As such Mr Brandon is not regarded as
independent in relation to the Agreement and has taken no part in
the Board's consideration of the terms of the Agreement or the
decision to enter into the Agreement with Integumen. Simon
Humphrey, Director, CEO and Nigel Burton, Non-Executive Director,
are regarded as independent directors in relation to the
Agreement.
About Modern Water
Modern Water was established in 2006 to develop and
commercialise water recovery technologies to counter water crisis
problems arising from climate change and a growing global
population. Having invested GBP20m over the last 14 years, the
results comprise a robust patent portfolio of cutting-edge
technology, focused on monitoring of contaminated water and
decontamination of wastewater, making recycling of water more
efficient. Six countries across the world have legislated that
Modern Water monitoring test systems are written into their
environmental protection legislation.
About Integumen plc
Integumen is a scientific research and AI-as-a-Service company
focused on production and analysis of bacteria, virus and toxins
utilising artificial intelligent data analytics in regulatory
technology, from scientifically proving the impact of skincare
product claims on skin microbiome for top 10 global cosmetic
company clients to remotely detecting water contamination in
real-time.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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