Microsalt Share Discussion Threads

[master rsi] 28/2/2024 14:50

22,224 rollover and paying Brokers with 45 shares = £40.50
so gets only 22.179 -45

[master rsi] 28/2/2024 10:59

Thanks "mr.oz"

A good size buy earlier 7K also well over MMs size

10:30:36 95.40p 7,052

[mr.oz] 28/2/2024 10:11

Very good MasterRSI 👍

[master rsi] 28/2/2024 09:41

From the "UPS" thread not long ago...
KEEP an EYE
SALT 90.50p (88 v 93p )

After the large rush to the sky, It looks like the retracement is done and now looking on the way up, buyers are appearing and MMs are ready to mark the stock higher. The stock is well bid with 25K @ 89.25p and only offering 5k @ 92.

[mr.oz] 28/2/2024 07:06

Are we to think this is Customer D?
Gone beyond consumer testing in the cycle, now approaching purchase planning after ongoing testing ?

[pdt] 27/2/2024 20:36

Nothing new in tonights webinar but they were still very upbeat. Just back from a 5 day Food Show in Dubai. I assume it was this one which says it is the world's largest Food event.

The advantages for bread were mentioned being both lower in Sodium and quicker to make. Burger buns were given as an example. And the breaded bit of chicken nuggets being high in salt currently.

It sounds like progress is being made with the UK Supermarkets. They mentioned being on an online meeting with both the Retailer and the manufacturer (presumably own brand ready meal makers).

Kept stressing how easy it was with minimal reformulation. And fielding enquiries about how easy was it to set up manufacturing in Mexico and Poland for example.

I think news is coming but they are constrained by needing to fall in line with the PR departments of the big multinationals.

Positive but it is going to take time I think to become established I feel. As an investor I am happy to be patient for this one.

[mr.oz] 24/2/2024 11:42

Lowering the sodium in our foods is no longer the hurdle it used to be for manufacturers

[purchaseatthetop] 21/2/2024 17:20

I prefer to look at the figures.

In the year to 31/12/22 revenue of $680k with a gross margin of $197k so only 30%. It just not very exciting.

[mr.oz] 21/2/2024 13:49

Please also copy paste the admission document's B2B customers A,B,C,D,E progress on that timeline

[purchaseatthetop] 21/2/2024 13:21

Page 26 of admission document…

“customers' new and existing product lines.
The Company's estimated lead time from introduction of an ingredient into the R&D departments at food ingredient and FMCG groups, through to a finished retail product, is approximately 18 months”

[purchaseatthetop] 21/2/2024 11:27

Any licensing income goes into Microsalt Inc. a 92% owned US company. They have the IP rights.

Admission Document:
“13.1.11
Intercompany license agreement between the Company and the Subsidiary
On 22 October 2020, (as amended on 17 July 2023) the Company entered into an intercompany license agreement with the Subsidiary pursuant to which the Company grants to the Subsidiary an exclusive licence to the "Intellectual Property Rights" to develop, make, manufacture, have made, use, sell, have sold, import, export, lease, otherwise transfer, and/or offer for sale products) covered by the '650 Patent and US patent application 16/535,703. The Subsidiary is also granted the right to sublicense its rights under the licence either exclusively or non-exclusively as it sees fit. The licence is stated to be revocable on termination of the agreement, which may be terminated for material breach, insolvency, or if the Subsidiary challenges the validity or enforceability of any of the licensed intellectual property rights.
In consideration of the licence grant, the Subsidiary agreed to pay the Company: (i)
US$1.00 plus 100 per cent. of its initial issued shares; and (i) a royalty payment equal to three per cent. of net sales of products that incorporate the licensed intellectual property rights payable quarterly for the term of the agreement. In addition, upon the successful license or sale of the licensed patents, the Subsidiary agreed to pay US$13,000 to the Company plus 30 per cent. of all future net sales or licensing income derived from the licensed patents. There are no termination provisions.”

And:
“13.1.14
Assignment agreement between the Company, Ya-Jane Wang, Sakharam K. Patil and S K Patil & Associates, Inc.
On 1 June 2016, the Company entered into an assignment agreement with Ya-Jane Wang and Sakharam K. Patil, and S K Patil & Associates, Inc. ("Assignors") under which the Assignors assigned to the Company all their right, title and interest in and to the '650 Patent and the invention protected by it. The consideration for the assignment was US$5,000 and the Company further agreed that upon the successful license or sale of the '650 Patent, it would provide US$13,000 to the Assignors plus 30 per cent. of all future net sales or licensing income derived from the '650 Patent. There are no termination provisions and no governing law provisions.
On 1 June 2018, the Company entered into an amendment agreement with the Assignors in respect of the assignment agreement dated 1 June 2016. The amendment agreement added that if the Company or any company within its group decides to manufacture and/or sell the patented salt or foods that utilise the patented salt, then the Company is required to pay a royalty of three per cent. of net sales of products that utilised the patented technology for the life of the 650 Patent. There are no termination provisions”

So any licensing income goes into Microsalt Inc, not Microsalt plc. 30% of that money goes to the Patils snd the remaining money might be then sent to Microsalt plc but only after the 8% shareholders get their money snd all costs are covered.

[purchaseatthetop] 21/2/2024 11:00

So is mT a metric ton or a thousand tons! That’s for you Bgtmsn.

[btgman] 21/2/2024 10:58

Wow PT

You are making yourself look an absolute clown it is rare that you see a poster so inaccurate and badly researched your posts smack of desperation. This is going back up

AIMHO
GLA
BTG

[purchaseatthetop] 21/2/2024 10:21

“Continuing monthly orders of 9.5 mT (I think this refers to 9,500 tonnes of Microsalt) are expected, with a supporting purchasing agreement anticipated before the end of 2023.”

Try to understand the basics. mT is a metric ton. Not a thousand tons. It is a teeny tiny amount of salt.

Standard table salt is about $200 a ton.

[mr.oz] 21/2/2024 10:15

Further notes on current Customers
Customer A (I believe this to be CVS Health which has 9,545 stores - noting too the RNS 19th October that Longs Drugs is selling SaltMe! crisps. These are part of CVS)

Customer A has identified numerous of its private label products which they are keen to substitute traditional salt with [Crystal]. The initial product rollout relates to four nut SKUs in approximately 800 stores in the US. The Group has commenced production of [Crystal] to be supplied for these private label products, with finished products expected to be on Customer A’s shelves in September 2023. Furthermore, it is expected that Customer A will sell [Crystal] shakers alongside products on end of shelf space from quarter one of 2024. The Directors expect both the SaltMe! Crisps and the shakers to be further rolled out across a significant number of Customer A’s 9,000 store estate in 2024.

Customer B and Customer C (I believe this could be Pepsi Co who operate extensively in LatAm)

Although separate entities, Customer B and Customer C operate under the same group and form one of the largest food, soft drink and snack manufacturers in the world. Following the achievement of global approved vendor status in November 2022, the Group recently advanced its commercial relationship with Customer B with the delivery of an initial 9.5 mT purchase order.

Continuing monthly orders of 9.5 mT (I think this refers to 9,500 tonnes of Microsalt) are expected, with a supporting purchasing agreement anticipated before the end of 2023.

Further line additions are then expected to follow in the first half of 2024 across multiple leading brands of Customer C. Discussions are progressing across several other geographical markets and the Group is currently negotiating a purchasing agreement for the Mexican and Latin American Markets. At the same time, discussions are ongoing relative to North American and global expansion. The Company is also negotiating a JDA to facilitate the coordination of additional product innovation and development opportunities in quarter one of 2024.

Sodium Reduction is one of PepsiCo's highest ESG priorities:

"PepsiCo is committed to aligning its products with consumer preferences and responding to advice from global health authorities. Our goal to reduce sodium in our foods portfolio by 2025 means reformulating our products and introducing new lower sodium products."

"We’re making sure to offer nutritious options that consumers are seeking, while still providing the same great taste. Our nutrition goals align with two of the United Nations’ sustainable development goals — Good Health and Well-Being, and Zero Hunger — and we help to work towards a future without malnutrition, hunger or food insecurity.

As for our trusty favorites, we’ve reduced added sugars, sodium and saturated fat without changing the flavors people know and love (because we know you’d notice). The recipe may have changed, but the familiar crunch of Lay’s will still make you smile from ear to ear. "

Customer D

The Group has been accelerated through Customer D’s R&D channels following positive sample and production results. [Crystal] has been confirmed for use in a rolled corn tortilla snack and an initial purchase order is expected by management in mid-2024. At such time, management expect that Customer D will release a joint press release citing [Crystal] as a key pillar of their low sodium solution(s).

Customer E

The Group is currently in the planning stage with Customer E, with samples of [Crystal] being sent for testing across several frozen food items in April 2023. Customer E already has an active low sodium initiative and initial orders are expected in April 2024.

Other Customers

On top of these there are already 3 Manufacturer/OEM agreements, 75 Distributors and over 1,300 retailers selling Microsalt products, based on public news announcements during 2023

[mr.oz] 21/2/2024 10:14

Excerpts from Oak Bloke analysis

"Microsalt has two patents essentially. The first is for the method of using nanoparticles. That patent is granted in the US (until 2030) and pending in a dozen major other countries including the UK, China, Oz, Brazil, Canada, India, Japan, Mexico and Russsia. So that covers about 3 billion people

A 2nd patent (also pending) is part of the UK’s Salt reduction targets specifically covers bread products. SALT has a patent pending specifically for sodium reduction for bread products"

[mr.oz] 21/2/2024 10:07

Excerpts from Strategy

"Having secured commercial orders from Customer B, the Mexican business of one of the world's largest food, soft drink and snack manufacturers, and Customer A, a national Fortune-500 pharmacy / food retailer, for use in their crisp and salted nuts lines, the Board see a clear path to sales growth in its higher volume B2B business. The Company expects to announce new orders and new customers, primarily based in the US, in the coming period.

MicroSalt is in early-stage discussions with three of the largest UK supermarkets to use MicroSalt technology in their own-label products, as well as suppliers of ready-meals and a fast food burger company"

[purchaseatthetop] 21/2/2024 09:30

Retirement. They don’t have massive interest. They have a potential tier one customer but they also say it is 18 months from starting development and having an actual product. The company has been going for three years and revenues are low with a gross margin of 30%. It’s salt. It’s a commodity and the useful application is surface salt such as crisps. Not in most foods.

Tekcapital gave up trying to sell the IP and now have a nice story. But a real future? Don’t think so.

[retirementfund] 21/2/2024 08:51

Now they have massive interest.

[purchaseatthetop] 21/2/2024 07:42

Tekcapital have been trying to get interest since 2016. Argue with that!

[mr.oz] 21/2/2024 07:32

You could visit the website to understand more


Must Watch Presentation:

And there's another thread with more info, if this one gives you the ick

[mr.oz] 21/2/2024 07:30

Must Watch Presentation: