DeepVerge PLC has acquired engineering services company Glanaco Limited for £1.08mln, payable in a mixture of cash (£430,000) and shares.
The acquisition brings the testing, assembly and commissioning of a new generation of MicrotoxPD (real-time pathogen detection in wastewater) in-house, DeepVerge said.
The new shares to be issued as part of the consideration represent 2.07% of the enlarged issued share capital of the company and have been issued at an assumed price of 14.25p each.
The consideration paid is calculated at 4.8 times Glanaco’s 2021 (unaudited) underlying earnings (EBITDA) of £222,000.
In addition, DeepVerge has secured a mezzanine loan facility of up to £25 million with Riverfort Global Opportunities PCC Limited and YA II PN, Ltd.
The facility will be available for three years in the form of 12-month mezzanine loan notes with the funds set to be invested to fuel momentum across all divisions of the group.
The initial drawdown of £4 million will be used for the Glanaco acquisition, the expansion of manufacturing capacity and laboratory space in the US for the Skin Trust Club and maintaining the growth trajectory of equipment production while building on the increasing demand the group is experiencing for its products and services across all divisions.
The facility provides flexible drawdown facilities at an interest rate of 1% per month on the outstanding funds drawn down.
“This £25 million mezzanine loan ensures availability of funds for growth, avoids stock market fluctuations, eliminates the need for a discounted equity dilution of shareholders and the Glanaco acquisition underwrites our ability to take control of our supply chains and manage scale to meet the growing global demand being experienced by the company,” said Gerry Brandon, the chief executive officer of DeepVerge.
"With our production order book for Q1 2022 the largest in the history of the company, these strategic moves keep our mission intact and ensures momentum is maintained this year and beyond," he added.
Shares in DeepVerge were up 2% at 13p in the first hour of trading.