Microsalt Share Discussion Threads

[pugugly] 17/10/2024 15:38

Possibly a tip-sheet - If so what chance of the smell of sizzling muppets in a few months?

[backmarker] 17/10/2024 14:19

Wow, that's a bit of a whoosh! Clearly someone doesn't think this is headed for the intensive care ward.

[backmarker] 17/10/2024 08:19

I have been trying to get my head around the 58mT order from Customer B.It seemed the order might have originated in 2023, but I might have that wrong. It now seems to have become repeat orders, but it is unclear if that means that the total orders from Customer B is now a multiple of 58mT. In any event none of it appears to have been delivered yet.More importantly I can find no statement of how much this order is actually worth, or how profitable it might be.Hmmmm......

[section2art] 16/10/2024 16:19

Looks like the "glide path to 1p" has come to an end.

[ellipses] 07/10/2024 20:02

"It's life Jim but not as we know it."
"You mean?"
"Yes Jim. It's dead. Nothing to see here."
"Engage Impulse drive. Take us out of orbit."

Well. This one looks like it is becoming an AIM listed company on a glide path to sub 1p.

One thing I now don't get is the Patent(s) are approaching EOL so babbling about getting them granted elsewhere is blibble. That's just a matter of process.

However if the elsewhere was interested they would have been selling product into it with or without the patents although the possibility would have dissuaded others from entering the market.

That does not seem to have happened in terms of mopping up so I would guess no-one is bothered or has other ideas.

My other begged question would be that since these one shot wonders are supposedly the masters of the art of adding flavour to Maltodextrin why did they not diversify the product range?

We could have had Saffron Flavoured snacks at half the price.

Ah well. I guess you lot, if you have invested, can look forward to seeing the value of your investment glide down to zero over the next six months.

[jaknife] 04/10/2024 13:08

btgman4,

"There is plenty of positive for Microsalt as posted earlier. In addition to today's patents for various countries across the world these are a huge positive
Taken from recent accounts RNS and trading update."

Wonderful!

But what about the numbers?

Looking at the interims:



1. Revenues fell by 14.4%! ie this isn't a *growth* company!

2. Revenues are trivial at a mere £220k for six months

3. Admin expenses are astronomical in comparison giving a significantly increased post-tax loss of £2.5m

It should be glaringly obvious that these numbers are awful and it should also be obvious that H2 is also going to have another huge loss which will necessitate yet more shares to be issued.

If you don't understand what dilution means then prepare to receive a very rude introduction to the concept!

JakNife

[papillon] 04/10/2024 11:51

I don't post on "many" shares, DaveTheChef.
You were very gullible when it came to EISB and you are being the same with SALT.
You must have lost a sizeable sum of money on EISB. How much are you losing on SALT? Stop chasing rainbows!

[btgman] 04/10/2024 10:19

There is plenty of positive for Microsalt as posted earlier. In addition to today's patents for various countries across the world these are a huge positive
Taken from recent accounts RNS and trading update.

1)orders were received from Customer B, the Mexican business of one of the largest beverage/snack food companies in the world (Customer C), with 58 mT of MicroSalt ordered and being delivered in Q3 and Q4 of 2024. OK so this was ordered in first half but delivered in the second half so not in Half 1 turnover

2)MicroSalt has advanced its negotiations with major food manufacturers, with volume commitments of approximately 92mT received in Q3, and further progress expected in Q4 from companies in Mexico, the UK and the US

3)B2C placement of shakers and SaltMe! low sodium crisps across approximately 600 new US stores in Q3, with retailers including Winn Dixie, Fresh Thyme, Sedano, Northwest Grocer, Cub Foods and Central Market stores. Approximately 1,200 US stores now retail MicroSalt products

4)Strong pipeline with significant volume customer prospects at advanced stages with a range of national and multi-national companies with scope for MicroSalt to be nominated as a supplier on larger product lines once established with these key customers.

5)Our B2C sales efforts for both SaltMe and MicroSalt shakers continue to gain new distribution with placements in 1,200 stores, as well as engagement within active e-commerce platforms such as Thrive, that specialise in "better for you" products.

6) The new distribution is for both the 2oz and 6oz saltshakers which are expected to be available in stores by October 2024. United Natural Foods will be the distribution partner to support the Loblaws placement. Loblaws operates over 2,400 stores across Canada

7) Positive conversations are also ongoing in the UK, Canada, South Africa, and the US, as the bulk business takes hold in Q4.

8) The Company is negotiating a purchasing agreement and joint development agreement with what we term Customer C, one of the world's largest food manufacturers that is expected to be executed in late 2024. Discussions are also underway for two major private label opportunities that should be announced by 31 December 2024.

AIMHO
GLA
BTG

[jaknife] 04/10/2024 08:06

DaveTheChef,

"Paps, you're not a nice person. Spreading negativity wherever you go, on many a share.
Rarely any positive to say"

There's not much positive to say about SALT, it's an obvious dog! Pointing that out doesn't make someone "not a nice person", it makes them an honest person.

On the other hand, pretending that SALT is somehow a miraculous company that will make everyone rich is dishonest, and encouraging others to lose their money by buying its shares definitely makes you "not a nice person".

What does that make TEK though?

JakNife

[davethechef] 04/10/2024 07:39

Paps, you're not a nice person. Spreading negativity wherever you go, on many a share.
Rarely any positive to say

[trustedinvestor] 04/10/2024 06:50

You cannot speculate - stick to the facts. Read the rns this morning.

[papillon] 03/10/2024 23:57

DaveTheChef 18 Sep '24 - 15:15 - 240 of 251
0 2 1
Bought a few more yesterday & this morning but showing at sells both days. Selling & fall overdone I say, & set a decent recovery,onwards.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

DaveTheChef also kept averaging down on EISB. What happened? They went bust! The same will probably happen with SALT.

[btgman] 03/10/2024 22:19

Taken from recent accounts RNS and trading update.

1)orders were received from Customer B, the Mexican business of one of the largest beverage/snack food companies in the world (Customer C), with 58 mT of MicroSalt ordered and being delivered in Q3 and Q4 of 2024. OK so this was ordered in first half but delivered in the second half so not in Half 1 turnover

2)MicroSalt has advanced its negotiations with major food manufacturers, with volume commitments of approximately 92mT received in Q3, and further progress expected in Q4 from companies in Mexico, the UK and the US

3)B2C placement of shakers and SaltMe! low sodium crisps across approximately 600 new US stores in Q3, with retailers including Winn Dixie, Fresh Thyme, Sedano, Northwest Grocer, Cub Foods and Central Market stores. Approximately 1,200 US stores now retail MicroSalt products

4)Strong pipeline with significant volume customer prospects at advanced stages with a range of national and multi-national companies with scope for MicroSalt to be nominated as a supplier on larger product lines once established with these key customers.

5)Our B2C sales efforts for both SaltMe and MicroSalt shakers continue to gain new distribution with placements in 1,200 stores, as well as engagement within active e-commerce platforms such as Thrive, that specialise in "better for you" products.

6) The new distribution is for both the 2oz and 6oz saltshakers which are expected to be available in stores by October 2024. United Natural Foods will be the distribution partner to support the Loblaws placement. Loblaws operates over 2,400 stores across Canada

7) Positive conversations are also ongoing in the UK, Canada, South Africa, and the US, as the bulk business takes hold in Q4.

8) The Company is negotiating a purchasing agreement and joint development agreement with what we term Customer C, one of the world's largest food manufacturers that is expected to be executed in late 2024. Discussions are also underway for two major private label opportunities that should be announced by 31 December 2024.

AIMHO
GLA
BTG

[digitalis1] 03/10/2024 17:17

JakNife an honest question if I may, are there any stocks you are bullish on?

[abrahe00] 03/10/2024 14:51

I have to agree with JakNife. I traded these for a small profit just after they IPO'd, but now won't touch any Tek Capital off-shoots with a barge pole.

I just read the documents on their latest pipedream Genip (GNIP). What a load of nonsense... It's essentially a recruitment website/service and quite where generative AI fits into this is hard to tell. I can see an argument for predictive AI being used to match vacancies and candidates, but Gen AI? Really? And, if it is preditictive, they're hardly first to market!

As for their IP on the AI technology... There's no way these guys are competing with Google, Microsoft or Open AI, who btw just raised $140bn USD yesterday.

[purchaseatthetop] 03/10/2024 13:13

Jaknife is right.
Tek Capital were trying to sell it back in 2016 and the floatation was the last chance to cash it in. Nobody has ever been interested.

[jaknife] 03/10/2024 12:32

btgman

”If Microsalt ends up being used by "one of the worlds largest food manufactures" in it's products I have absolutely no doubt that Microsalt will make a huge amount of money. Microsalt have said they expect to announce that by year end. Lets see where we are when we these come through”

And that right there is the reason why everyone should sell!

The Microsalt business has been going for nine years now and has gone nowhere. It is hopelessly sub-scale and shouldn’t be listed! The only reason that some of you are long is because TEK/SALT have put ridiculously optimistic expectations out there.

This is the TEK scam! They encourage you to buy the shares of their useless companies based on wildly optimistic projections and bonkers mad assumptions. But they never deliver and always disappoint.

Get out now whilst you still can!

JakNife

[btgman] 03/10/2024 12:10

If Microsalt ends up being used by "one of the worlds largest food manufactures" in it's products I have absolutely no doubt that Microsalt will make a huge amount of money. Microsalt have said they expect to announce that by year end. Lets see where we are when we these come through

AIMHO
GLA
BTG

[dr biotech] 03/10/2024 10:13

Its not million tonnes unfortunately, its metric tonnes. Price for 1 metric tonne of table salt is about £500. Lets say microsalt is £1000/Ton... it doesn't add up to a lot.

I just don't see this lot making it. Problem is that salt is a commodity - so you have to sell extremely large volumes to make money, or you sell less of the expensive stuff - but the price you can charge it somewhat limited by how cheap the commodity is. Given there are lots of lower sodium salts around its going to be a very hard sell.

[lord loads of lolly] 02/10/2024 22:49

Who knows, but 92M of that 150M ton total relates to “volume commitments”. Which don’t sound anything like the same to me as firm orders. More a sales forecast that’s both non-contractual & legally non-binding.

In any case, over what period do these “volume commitments” apply? A year? A decade? Several decades? There’s as much - if not more - significance in what we weren’t told in that TU as what we were.

[bill216] 27/9/2024 11:39

Fair points Do you know how much revenue the post period orders of 150 million tons equates to?Could be sharp rise in sales coming if you take the half full view.

[jaknife] 27/9/2024 11:27

Kiplig,

It is time to discuss SALT again, as noted back in May:



Let’s go through today’s interims ( with those comments in mind:

P&L
I had forecast:
”* insignificant growth
* immaterial revenue
* significant admin costs making the post-tax loss material”

It is worse:
* revenues have declined by 14.4%
* revenues are still immaterial (£220k), at a level where this might be a “hobby business” for a retiree, but this is obviously not a company that should be listed.
* admin expenses are astronomical in comparison giving a significantly increased post-tax loss of £2.5m

Balance Sheet
I had forecast:
”* an increased share count, probably from the exercise of share warrants
* probably enough cash, from the exercise of those share warrants, for there to be enough to continue as a going concern for the next twelves months
* net assets in the region of £2m”

* There were 43.2m shares in issue back in May when we last discussed SALT, that number is now 48.2m, following the exercise of various warrants, shareholder have been diluted by 11.6%
* They had cash as at 30 June 2024 of £2.4m and, given that the cash burn in H1 was c. £3.2m I would be concerned that they will need to raise further funds before Christmas
* net assets are just £0.9m

Cash Flow
* c. £3.2m was burnt in H1, it really doesn’t look pretty


I had also forecast:
”* a lower share price, in the ball park of 60p, possibly lower if the convertible loan has begun to be converted to shares (it's an "at the market" convertible rather than a fixed price one)”

The share price is 50p and the convertible hasn’t started yet!

These numbers are stunningly bad, and it should be plainly obvious that the full-year numbers are going to look awful as well. In addition significant shares need to be issued to raise capital for the business.

I would encourage you to go back and look at your posts from May and think about your expectations for this business versus what I forecast. Somewhere you have had your expectations set at an unrealistic level and if you re-read my comments you will see that I lay that blame fairly and squarely with TEK Capital. TEK Capital has a track record of floating off parts of its portfolio at ridiculously high valuations and with ridiculously high expectations. Then they fail to deliver and shareholders lose bucket loads.

I would suggest that you sell whatever SALT shares that you have left now, take the hit on the chin and chalk it up as a lesson learnt.

JakNife