MicroSalt PLC Admission to AIM and First Day of Dealings

RNS Number : 6003B

MicroSalt PLC

01 February 2024

 

 1 February 2024

 

MicroSalt Plc

("MicroSalt" or the "Company")

 

Admission to AIM and First Day of Dealings

 

MicroSalt plc, a company commercialising a patented technology to produce full-flavour, low-sodium salt for food manufacturers and consumers, is pleased to announce that its ordinary shares of £0.001625 each ("Ordinary Shares") will be admitted to trading on the AIM market of the London Stock Exchange plc ("Admission") and dealings in the Ordinary Shares will commence at 8.00 a.m. today, 1 February 2024, under the ticker SALT and ISIN number GB00BQB6FF85.

 

Admission highlights

 

·      Market capitalisation of approximately £18.5 million on Admission

·      Successful fundraise totalling approximately £3.1 million (before expenses) at an issue price of 43 pence per Ordinary Share

 

The net proceeds of the fundraise will principally be used to support the ongoing development of the Company and its subsidiary, MicroSalt Inc. (together the "Group"), sales and marketing of MicroSalt's applications with existing and potential customers, for R&D for FMCG companies product line extensions and general working capital purposes including increased headcount. The Board believes the fundraising will provide the Group with the capital required to support its growth strategy and to capitalise on its pipeline of commercial opportunities with existing and potential customers. Furthermore, admission to AIM will enhance MicroSalt's corporate profile.

Zeus Capital acted as Nominated Adviser and sole Broker to the Company, and SP Angel Corporate Finance LLP as placing sub-agent.

 

Rick Guiney, CEO of MicroSalt, said: "We are delighted to announce our successful fundraise and admission to AIM, which is an important step in our development and provides an excellent platform for growth. The World Health Organisation has stated ambitions to reduce sodium intake by 30% by 2025, and MicroSalt is extremely well placed to capitalise upon rising demand for lower sodium products with our disruptive, proprietary product and manufacturing process."

 

MicroSalt overview

 

MicroSalt is a major potential disruptor in the food market. Its mission is to reduce excess sodium consumption, a significant contributor to hypertension and heart disease, by providing a full-flavour salt with approximately 50% less sodium than traditional salt for food manufacturers and consumers.

 

The Group has developed a patent protected and scalable manufacturing process producing a salt crystal approximately 100 times smaller than traditional salt. These micron sized particles mean MicroSalt has improved adhesion to food compared with traditional salt crystals and dissolves much faster on the tongue, thereby delivering the same sense of saltiness with approximately half the amount of sodium.

 

MicroSalt is not a salt substitute, but simply a salt containing only sodium chloride and non-GMO maltodextrin. Unlike most low-sodium alternatives, MicroSalt does not contain potassium chloride or any other added chemicals, thereby eliminating the bitter aftertaste associated with existing salt substitutes.

 

Demand for reduced sodium and 'clean' product labels across both B2B and B2C channels has increased significantly due to enhanced governmental and societal pressure for healthier products. Hence the Group's primary strategy is to partner with brands seeking to reduce sodium content in their foods, for both existing and new product lines.

 

As a proof of concept, the Group created a consumer brand of potato crisps called SaltMe! which one of the largest supermarket chains in the US launched into a number of its US stores in February 2022. Further agreements with smaller supermarket chains have resulted in current availability of SaltMe! crisps in more than 400 stores across the US. MicroSalt is also ideally suited for numerous other applications such as nuts, tortillas, popcorn, bread, cereals and energy bars due to its reduced sodium content and superior adhesion when applied directly to products. MicroSalt's product range was extended in October 2022 with the launch of MicroSalt shakers which are now available on Amazon in the US and UK and in 450 stores in the US.

 

MicroSalt has delivered its first commercial-volume purchase order from a Fortune 500 pharmacy / food retailer for use on an initial four lines of its own branded salted nuts to be sold initially across an initial c.800 stores. It has also delivered 29 metric tonnes of MicroSalt to one of the world's largest beverage / snack good companies for use in one of its leading crisp brand flavours. Multiple major B2B companies, both US and multi-national, are at various stages of commercial testing and price negotiations.

 

The Board

The Board comprises two executive directors and three independent non-executive directors. The expertise and experience of each of the directors is set out below:

 

Judith Batchelar (64) - Non-Executive Chair

Judith Batchelar has over 35 years' experience in the UK food industry, having previously served as a Director of Sainsbury and Safeway. Judith is a biochemist, nutritionist and has an Honorary Doctorate in Agriculture from Harper Adams University. As a Fellow of the Institute of Food Science and Technology and the President of the British Nutrition Foundation, she is highly respected in the sector. She is also a Fellow of the Royal Society of Arts, Manufacturers and Commerce. In 2015, Judith was awarded an OBE in 2015 for services to farming and the food industry. She is also a Director of Monaghan Mushrooms in Ireland.

 

Rick Guiney (68) - Chief Executive Officer

Rick Guiney became MicroSalt's Chief Executive Officer in December 2021 and is a veteran of the food industry with a 35-year track record including leading positions at Procter & Gamble, Anheuser-Busch and Quorn Foods. He previously founded a snacks company, Classic Snacks Inc., where he was Chief Executive Officer for 33 years. During his tenure he grew it into a leading national snack company in the US which was included on the Inc.500 Fastest Growing Company List.

 

Konrad Dabrowski (40) - Chief Financial Officer

Konrad Dabrowski is a Qualified Chartered Accountant after having spent 5 years with Deloitte US. Konrad previously worked as Finance Director at Lucyd and was Global Accounting Manager for Restaurants Brands International, working alongside businesses such as Burger King, Tim Hortons and Popeyes. Currently Konrad serves as Chief Financial Officer of Innovative Eyewear and AIM listed Tekcapital PLC however he spends the majority of his time with the Group. Post Admission he has contracted to spend at least 25 hours a week with the Group.

 

Gary Urmston (56) - Non-Executive Director

Gary Urmston has more than 17 years in the food industry, notably as Chief Financial Officer of Produce Investments Ltd and William Jackson Food Group Ltd. He has governance and internal control experience, through his roles leading the finance functions, as Head of Internal Audit for UK manufacturing company, Northern Foods plc, as well as through his audit and assurance experience with KPMG. He also has extensive M&A experience having led a number of transactions during his time in industry.

Dan Emery (67) - Non-Executive Director

Dan Emery has served as a non-executive Director on the board of MicroSalt since December 2021 and has longstanding experience in the food sector. As VP of Sales & Marketing at Pilgrim's, a leading global provider of high-quality food products, where he grew sales from US$970 million to almost US$9 billion. He has also previously served as Chief Executive Officer and President of Meaningful Solutions, a consulting firm specialising in the agro-food sector and of GreenStar Cooperative, focusing on gourmet food distribution in the New York area.

 

The Company's Admission Document can be found on its website at www.microsalt.co

 

 

 For more information, please visit www.microsaltinc.co, follow on twitter @microSaltPLC or contact:

 

 

MicroSalt plc	Via Flagstaff PR
Rick Guiney, CEO
Zeus (Nominated Adviser and Broker)	[phone]
David Foreman / James Edis (Investment Banking)
Dom King (Corporate Broking), Rupert Woolfenden (Sales)
Flagstaff PR (Financial PR/IR)	[phone]
Tim Thompson / Alison Allfrey / Anna Probert [e-mail]

 

 

Notes to Editors

 

MicroSalt® produces a patented full-flavour, low-sodium salt for food manufacturers and consumers.

 

MicroSalt is a major potential disruptor in the food market, thanks to its micron sized particles which deliver the same sense of saltiness to a wide range of foods but with approximately 50% less sodium. Excess sodium consumption is a significant contributor to cardiovascular disease and MicroSalt's solution meets the rising demand for healthier alternatives to traditional salt. The WHO has set a target for reducing global sodium intake by 30% by 2025, which it estimates will save 7 million lives by 2030.

 

Each year, cardiovascular disease costs the UK £19 billion - if the average salt intake was reduced by one gram per day, it has been estimated that 4,147 lives and £288 million would be saved each year in the UK. As a nation, the UK consumes 183 million kilograms of salt each year, and 70 per cent. of the typical person's sodium intake is hidden in processed foods.

 

Operational since 2018, MicroSalt uses a patent-protected technology which helps create high barriers to entry within the reduced-sodium salt market. The group has a US patent and 14 patent applications pending in other jurisdictions globally.

 

The Directors believe that MicroSalt is well positioned to capture growth in the low sodium market, which is expected to grow exponentially, and that there is also scope to enter the larger salt market.

 

MicroSalt has a three-pronged marketing strategy, targeting large B2B food manufacturers, the B2C market and e-commerce customers. Microsalt's all natural, low-sodium solution is well positioned to take advantage of the fast-growing market for a healthier alternative to traditional salt.

 

ENDS

 

 

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