MicroSalt shares surged in early trade on Monday after the low-sodium salt technology announced forecasts for 2025 alongside an oversubscribed fundraise at current market prices.
The Tekcapital portfolio raised £2.3 million in an oversubscribed subscription to fund the development of a recently launched ‘Quick Service restaurant’ product, which the company sees as a ‘tremendous opportunity for growth’.
However, the most exciting takeaway from today’s RNS is that MicroSalt forecasts 2025 B2B volumes to increase more than 10 times the amount of low sodium salt manufactured in 2024. This represents a step-change in customer demand and suggests MicroSalt salt will be used in the production of millions, if not tens of millions, of individual food products.
MicroSalt said it had received orders for an additional 290 metric tonnes of low-sodium salt for 2025 already and expects this to increase.
Investors will also be delighted to hear the company has received positive feedback subsequent to the launch of the Quick Service restaurant and MicroSalt will target the massive french fry market. This development, should it result in the commercial reformulation of products, would open the doors to a market of billions of people globally that consume fast food products.
MicroSalt shares were 20% higher at the time of writing.
Investor confidence in MicroSalt was further demonstrated by the £2.3 million fundraising being completed at current market prices, with investors prepared to commit substantial levels of cash without demanding a discount to the recent share price.
“We are pleased to close this oversubscribed fundraising at the current market price, at a time when many other fundraisings are consummated at substantial discounts,” said Rick Guiney, CEO of MicroSalt.
“This additional capital will enable us to further scale our B2B sales to snack manufactures and help us meet anticipated customer demand in the QSR segment since our January 2025 product launch.
“I am very optimistic on the upside potential for anticipated rapid growth in 2025, particularly at a time when governments are increasingly focused on initiatives to reduce Sodium consumption in manufactured foods. Indeed, only last month the US FDA proposed new short form nutritional labels to be applied to the front of packaged foods where the levels of (i) Saturated Fat; (ii) Sugars; and (iii) Sodium are to clearly labelled as Low, Medium or High. For MicroSalt, this is potentially game-changing and we already have food companies engaging with us to actively address the need to lower Sodium levels in their products.”