DeepVerge PLC (LON:DVRG) said it signed a non-binding memorandum of understanding (MOU) with China Resources Environmental Protection Development Limited, a subsidiary of China Resources Group, to form a joint venture (JV) for the manufacture and sale of environmental monitoring equipment.
The company, which uses artificial intelligence (AI) to analyse and identify bacteria, viruses and toxins, said the parties will negotiate, agree, and execute a number of definitive agreements for the JV which are expected to be signed by June 30 and become operational by September 1.
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The definitive agreements will cover a commercial framework agreement, a technology and support deal as well as a reseller agreement.
DeepVerge will own 49% of the JV and China Resources 51%, while the firm said the two parties are also currently undertaking a scoping exercise to assess the level of start-up costs and non-cash consideration to be introduced by each partner.
"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”, DeepVerge chief executive Gerard Brandon said in a statement.
“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", he added.