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Tekcapital's shares gain on MicroSalt partnership with major US retailer

10:54, 21st December 2022
Victor Parker
Vox Newswire

Tekcapital (TEK Follow | TEK), an intellectual property investment group, announced that Hannaford Brothers, a food retailer operating in the Northeastern US, has agreed to stock MicroSalt's table-top shakers.

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. Tekcapital owns 97.2% of MicroSalt and 73% of its US subsidiary.

Hannaford Brothers will stock both sizes of MicroSalt's table-top shakers, which launched on 1 October 2022 to major US retail chains. The shakers are available in 2-ounce and 6-ounce sizes.

"We are extremely excited that Hannaford Brothers has joined with us to provide low sodium solutions to its customers. This is a tremendous step in our march toward reducing excess sodium in the average diet. Our take-home shakers will let people salt their food to taste without excess sodium" said Rick Guiney, CEO of MicroSalt.


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More good news from MicroSalt prior to its anticipated 2023 IPO. Hannaford Supermarkets is a major retail chain in the Northeastern United States, operating 185 stores in Maine, New York, Massachusetts, New Hampshire, and Vermont, most with full-service pharmacies.

Tekcapital shares jumped 10% this morning on the news. Tekcapital owns 97.2% of MicroSalt and 73% of its US subsidiary by the same name.

Stock Chart | TEK

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, now including Hannaford, as well as 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.

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 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.

TEK is currently readying MicroSalt for IPO on AIM in 2023. Two days ago, the company announced it had appointed Zeus Capital Limited as its nominated adviser and broker.

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.

Naturally, TEK investors 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 TEK's ambitions for the rest of its portfolio.

Investors should Follow | TEK Tekcapital for further updates on MicroSalt's upcoming IPO.


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