Dear , 

Microsaic was spun out of Imperial College in 2001, established its headquarters in Woking in 2004 and was listed on AIM in 2011. Its aim was to optimise the well characterised effectiveness of mass spectrometry, which measures the mass of molecules very accurately hence enabling their detection and identification, in smaller and simple to use systems. It foresaw that developing such systems, which would have a substantially reduced cost of ownership and be easier to operate and to maintain, would open up significant new markets and broaden the use of mass spectrometry in existing markets.

The Technology
Microsaic has developed patented, chip-scale technologies called Ionchip, Spraychip and Vac-chip which allow it to miniaturise the form of the instruments. The basis of this technology is MEMS, which allows the use of specialist semiconductor processes to build tiny structures on silicon wafers. The chip-based systems are obviously smaller, not an insignificant factor in a lab, but they also offer the advantage of lower vacuum and power needs, smaller sample sizes and the convenience of easy use and maintenance.

IP
The company has an extensive array of patents, with around 60 granted and 10 pending approval. It is currently the only company which has successfully produced a miniaturised mass spectrometer.

The Market Opportunity
There are many potential applications of miniaturised mass spectrometry technology. In existing markets the smaller form factor and reduced running costs of their product allow the utilisation of the technology across significantly more users than the traditional centralised resource.

But the same features also open up potential new markets across scientific and commercial disciplines. For example, the Microsaic products could be used in on-line detection, the monitoring of ongoing reactions and alongside various chromatography techniques for instant characterisation of new molecules. In practical terms there are potential uses in rapid detection of counterfeit products, including medicines and foodstuffs, localised detection for environmental monitoring and forensics, and frequent ‘live’ monitoring in production processes.

Microsaic is now focused on uses in pharmaceutical R&D, where the integration of mass spectrometry with other technologies could optimise separation, purification and monitoring, in the largest markets of North America and Western Europe. The company is already partnering with global instrument OEMs and distributors, who are selling stand-alone products and also incorporating the Microsaic offering into their own systems. Microsaic sells the systems but also benefits from the sale of consumables, for example sample processing products, that are used with the systems.

The Team
Dr James Ramage, CEO, is a Fellow of the Royal Academy of Engineering and the Institute of Physics. He has extensive experience of the analytical instrumentation industry and served as a Director and Divisional Managing Director of VG Instruments plc and Fisons plc respectively prior to becoming executive Chairman of Tesla Engineering in 1995. James was appointed a Director of the Company in April 2010 and became CEO on December 1, 2015.

Colin Nicholl, (Non-Executive) Chairman, brings a wealth of business, financial and city experience to the Company as a former partner of Cazenove & Co. and CIO of Cazenove Asset Management. He is a non-executive Director of IM Asset Management and was, until its takeover, Chairman of Membrane Extraction Technology Limited. Mr Nicholl joined the Board of the Company in 2005 and has served as Chairman since July 2013. He sits on the Board’s Finance and Audit Committee and Remuneration Committee.

Becan Metcalf, Finance Director, has 35 years of financial management experience with international companies primarily in the mining and pharmaceuticals sectors, including Beowulf Mining and GlaxoSmithKline. In the past ten years, he has been involved with companies listed on AIM and on the Toronto stock exchange as Finance Director, Chief Financial Officer and in a non-executive director capacity. Mr Metcalf was appointed to the Board of the Company on 18 December 2015.

Glenn Tracey, Chief Operating Officer, has more than 15 years’ experience leading product marketing and R&D for small and large companies in sensing and detection, across applications in human and environmental health. For the majority of this time, Glenn was at global life sciences company PerkinElmer, where he progressed through multiple senior roles. Glenn joined the Company in March 2015 and was appointed to the Board on December 1 2015.

The Investment Case
Parkwalk participated in the recent £5.4m fund raising by Microsaic, which the company expects will provide sufficient working capital to take the business through to profitability. The company has a product, the 4000 MiD, selling in the market and has significant agreements with two major OEMs and distributors. The next generation product, the 4500 MiD, is in development and is expected to be launched in 2017. We believe the recent realignment of business strategy will help drive down costs of development and will deliver stronger market penetration as sales efforts are more focused.

This financial promotion is issued by Parkwalk Advisors Limited (Parkwalk), which is authorised and regulated by the Financial Conduct Authority. Investments referred to in this newsletter are not suitable for all investors.  Interested parties are strongly recommended to seek specialist financial and tax advice before investing in any product.  Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results, and the value of investments may go down as well as up. Projections and forecasts are also not a reliable indicator of future performance. Investments in small and unquoted companies carry a higher risk than many other forms of investment. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Parkwalk is not able to provide advice as to the suitability of investing in any product.