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DeepMatter Group Plc  (AIM: DMTR), the AIM-quoted company focusing on digitising chemistry , today announces a placing and subscription to raise gross proceeds of £2.1 million, at a price of 1.5 pence per new ordinary share of 0.01 pence each (the "Issue Price").

The Company proposes to raise approximately £1.9 million, before expenses, by way of the conditional placing of 130,830,001 new Ordinary Shares at the Issue Price with certain new and existing investors (the "Placing"). In addition, the Company is also proposing to raise £0.2 million by way of a direct subscription with the Company of 11,733,334 new Ordinary Shares at the Issue Price (the "Subscription"). Certain directors of the Company intend to subscribe for new Ordinary Shares as part of the Subscription.

The Placing and Subscription proceeds will be used to further strengthen the Group's balance sheet and invest in sales, marketing, distribution and support, enabling it to grow market share of its DigitalGlassware™ technology platform and cheminformatics product lines, including ICSynth. In combination with revenue estimates, the net proceeds of the Placing and Subscription are expected to fund the expansion plans of the Company over the next 24 months.

In the Directors' opinion, the change to working practices within laboratories caused by social distancing is highlighting the need to share scientific data both remotely and within the lab, accelerating the digitisation of the laboratory and underlining the value proposition of the DigitalGlassware™ platform. The Group has a growing pipeline of sales opportunities and has seen increased interest in its DigitalGlassware™ platform and other products.

The Company also announces it has provided DigitalGlassware™ to a top 10 global pharmaceutical company, Novartis, and is finalising a collaboration agreement with them, building on previously announced collaborations with AstraZeneca, the University of Nottingham, the University of Leeds and Cancer Research UK.

The Placing is being conducted in accordance with the terms and conditions set out in the Appendix. Completion of the Placing and Subscription are conditional on, inter alia, Admission of 142,563,335 New Ordinary Shares.

The Issue Price represents a discount of 18.9 per cent. to the previous day closing share price of 1.85 pence per share on 10 July 2020.

The Placing is being conducted by Canaccord Genuity Limited ("Canaccord Genuity") as Nomad, Sole Bookrunner and Broker (the "Broker").

Mark Warne, CEO of DeepMatter , commented, "Since the successful conclusion of our Pioneer Programme in 2019, we have seen a steady increase of interest in our DigitalGlassware™ platform, which has subsequently been accelerated by the new socially-distanced working practices in labs around the world. As we transition from the R&D phase into full commercialisation, with a clear focus on sales execution, this additional funding will enable us to invest in our operations so that we can capitalise on this opportunity and deliver long-term growth in shareholder value."

 

For more information

DeepMatter Group plc	T: 0141 548 8156
Mark Warne, Chief Executive Officer
C anaccord Genuity Limited (Nominated Adviser and Broker)	T: 020 7523 8000
Bobbie Hilliam Georgina McCooke Angelos Vlatakis
Alma PR	T: 020 3405 0205 [email protected]
Caroline Forde Harriet Jackson Kieran Breheny

About DeepMatter Group plc   

DeepMatter's long term strategy is to integrate chemistry with technology, thereby enabling a greater use of artificial intelligence and reaching a point where chemicals can be autonomously synthesised through robotics. In the near term this involves the provision of an integrated software, hardware and artificial intelligence enabled platform, DigitalGlassware™, to scientists across research and process development sectors.  

The DigitalGlassware™ platform allows chemistry experiments to be accurately and systematically recorded, coded and entered into a shared data cloud. The platform is designed to enable chemists to work together effectively; sharing the details of their experiments from anywhere and in real-time, so that work is not needlessly duplicated, time and money wasted, and ultimately so new discoveries may be made faster.  

Visit:  www.deepmatter.io  and follow @deepmattergroup