TPI provides its latest research note on DeepVerge plc (DVRG.L).

Deepverge has confirmed receipt of contractual orders to the value of US$5m (£3.6m*) for Modern Water equipment so far in Q1 2021, including eight of its units being retrofitted with MicrotoxPD SARS-CoV-2 wastewater detection systems.

This is particularly significant in two respects: (i) That it heightens confidence in the forecast made on 11 January 2021, in which the Group guided investors to anticipate full-year 2021 revenues of £10m; and (ii) The fact that 80% of the equipment presently being produced by Modern Water has been earmarked for the Chinese market.

The fact that China was the first location hit by what became the global COVID-19 pandemic, and also the first to successfully respond in terms of controlling its progression/severity through implementation of strict containment measures followed by an accelerated roll-out of a portfolio of domestically developed vaccines (including Sinovac and Sinopharm), suggests that the same government will also lead the world with respect undertaking a rapid, possibly enforced through regulation, installation and facilitation of various full-time monitoring, detection and alert systems deemed necessary to provide their population with a safe living environment going forward.

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We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to DeepVerge plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2021 Turner Pope Investments (TPI) Limited, all rights reserved.

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