Deepverge PLC (AIM:DVRG) has confirmed that it is seeking to arrange a new equity funding and retire an existing mezzanine loan facility with Riverfort.
The AI and IoT technology company, in a statement, noted market speculation ahead of the scheduled start to repayments under the loan from Riverfort, due on October 16, 2022, and, revealed that it has agreed with the lender that there will be no default event should that payment date be missed – so long as the payments are made in full upon completion of a fundraise.
“The company and its broker recently began the process of seeking to raise equity, not only to repay and retire the facility but also to fund sufficiently the company's working capital requirements to enable the company to reach profitability and cash generation during 2023,” DeepVerge said.
“However, particularly given the impact of the above-mentioned speculation on the share price, and although the institutional equity roadshow is progressing well with positive feedback, there can be no guarantees that sufficient equity funds can be raised, nor the terms thereof.
“In parallel with seeking to strengthen the balance sheet, the company is in the process of strengthening and reorganising the board to reflect the recent fast pace of growth and that expected in 2023 and beyond," the company added.
Deepverge, meanwhile, repeated that it is currently exploring a range of options to meet the unprecedented demand for its Labskin services and the accelerating growth of its Skin Trust Club.