Tekcapital's MicroSalt appoints broker for 2023 IPO
( ), an intellectual property investment group, updated markets this morning on plans for its MicroSalt business (formerly known as Salarius). Tekcapital owns 97.2% of MicroSalt and 73% of its US subsidiary by the same name.
TEK announced that Zeus Capital Limited has been appointed by MicroSalt as its sole Nominated Adviser and Broker for MicroSalt's proposed IPO on AIM in 2023.
"We are very pleased to appoint Zeus as our Nominated Adviser and Broker, to assist MicroSalt in effectuating an AIM listing and to provide capital market guidance for our global growth strategy" said Rick Guiney, CEO of MicroSalt.
MicroSalt is the developer and manufacturer of a proprietary low-sodium salt. Using a patented process of producing salt crystals, MicroSalt claims to achieve the same teste as regular table salt at half the sodium content.
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Investors should Tekcapital for further updates on MicroSalt's upcoming IPO.
What distinguishes MicroSalt's product is that it is not a substitute, but actual salt. The company's patented technology produces salt crystals that are 100 times smaller than normal table salt, so they deliver the same intensity of taste at 50% the sodium content. It is a potentially disruptive technology, and the company's aggressive rollout has proven the food industry is interested.
MicroSalt has been making headlines with its disruptive salt product that has now been rolled out at scale in the US.
It is currently available as a standalone product in major US retail chains, in the ready meals market through a partnership with Presty! Foods, and as the key ingredient in MicroSalt's SaltMe! brand of crisps, sold at Kroger in the US.
MicroSalt has also received commitments from UNFI, a major North American food wholesaler, for placement in its distribution centers. MicroSalt said it is exploring product line extensions with sea salt and Himalayan salt as well as geographic expansion into the UK, Europe, and Canada in 2023. The company also received its first bulk B2B ingredient order in July. MicroSalt's CEO says interest is "very high" for bulk B2B MicroSalt sales internationally.
According to a recent report published by Coherent Market Insights, the global sodium reduction ingredient market is projected to reach around US$2.2bn by end of 2027, growing at a CAGR of 12.2% between 2020-2027.
The valuation for MicroSalt has been on the ascendancy since FY18 with the most recent recorded Book Value of US$4.3m in the November 2021 accounts.
Obviously, investors in TEK will be looking for a significant uplift in valuation on the public markets, which should provide a boost for TEK shares and perhaps even a special dividend in cash depending on TEKs ambitions for the rest of its portfolio.
has raised c. US$25m since IPO, which it has utilised to build net assets of over US$70m as of 31 May 2022. Its stated goal is to "deliver significant returns on invested capital whilst bringing leading innovations to market, coupled with opportunities for special dividends along the way." Investors can expect such special dividends upon meaningful sales of portfolio company shares, typically as a company reaches a US$100m valuation.
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