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Deepmatter Shares Spike 27% Higher on Merck Contract Before Quickly Falling Back

Simon Mugo trader
Updated 20 Jan 2021

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Shares of Deepmatter Group PLC (LON: DMTR) surged as much as 27% after the company announced that one of its subsidiaries had signed a multi-year, limited-use data licensing agreement with Merk’s Life Science division.

The deal requires the company to provide proprietary chemical structure and reaction data content to Merck's selected application. No further details were provided.

Deepmatter is a big data and analytics company that built a proprietary platform know as DigitalGlassware™ which allows chemists to capture, record and reproduce their results on a global scale.

The company also announced a similar multi-year contract in mid-December with Thieme Chemistry without revealing the financial details.

Mark Warne, CEO of DeepMatter commented: “We are delighted to have entered into this license with Merck, a company dedicated to making research and biotech simpler, faster and safer.”

Deepmatter shares today broke above the crucial 2.70p resistance level, but quickly fell back giving up all its gains as sellers stepped in taking control of the price action. Investors who are bullish on the stock would love to see the price break and hold above this level launching a new uptrend.

Deepmatter share price

Tradingview chart of Deepmatter share price 20-01-2021

Deepmatter shares surged as much as 27.12% to trade at 3p having risen from Tuesday’s closing price of 2.36p but later gave up all its gains.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading