REG - MicroSalt PLC - Admission to AIM and First Day of Dealings

MicroSaltAnnouncement

01/02/2024 07:00

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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
(http://www.microsaltinc.co) , follow on twitter @microSaltPLC or contact:

 

 

 MicroSalt plc                                            Via Flagstaff PR
 Rick Guiney, CEO

 Zeus (Nominated Adviser and Broker)                      +44 (0)20 3829 5000
 David Foreman / James Edis (Investment Banking)
 Dom King (Corporate Broking), Rupert Woolfenden (Sales)

 Flagstaff PR (Financial PR/IR)                           +44 (0)20 7129 1474
 Tim Thompson / Alison Allfrey / Anna Probert

 microsalt@flagstaffcomms.com

 

 

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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