Intellectual property investment group, Tekcapital PLC (AIM:TEK), saw its shares spike on Wednesday morning, following its announcement that its subsidiary, Salarius, had confirmed a distribution agreement with Gehring-Montgomery.
In its statement, Tekcapital states that Gehring-Montgomery is a leading food and raw materials distributor for commercial and industrial manufacturers in food, automotive, coatings, adhesives, pharma, and personal care industries in North America.
The partnership between the two companies is set to involve an ‘aggressive’ B2B outreach initiative to source new customers, attendance at food trade shows such as Expo West and Supply Side West, and securing customer opportunities outside of the US.
The product being distributed as part of the new deal is Salarius’s MicroSalt, which are fast-dissolving salt crystals that are designed to provide the same sensation as regular salt but with 50% less sodium. The company stated that the product is also Kosher, Non-GMO, all-natural and gluten-free.
It added that with the global savory snacks market being expected to reach US$108 billion by 2021 – and the low sodium ingredients market anticipated to hit US$1.76 billion by 2025 – the company feels as though Microsalt ‘is a food ingredient whose time has come’.
Responding to the deal between Tekcapital’s Salarius and Gehring Montgomery
Commenting on the news, Salarius CEO, Victor Hugo Manzanilla, stated:
“We are extremely energized about our partnership with Gehring-Montgomery and working closely with their team of sales experts to increase brand awareness and accelerate sales of Microsalt ® . Our partnership is a win-win-win as we are offering their customers a unique, on-trend, innovative ingredient that will also help consumers lower their sodium intake.”
Speaking on the deal, Gehring Montgomery President and Managing Director, Mark Bitting, stated:
“Our partnership with Salarius complements our overall U.S. strategy offering, providing a highly innovative specialty, such as “Microsalt”, a cutting-edge ingredient, allowing consumers to lower their sodium intake yet maintain the product’s full flavor. This meets the challenges of the general public’s demand for ground-breaking, healthy alternatives that result in sodium reduction formulation,”
Following the update, Tekcapital shares rallied 30.55% or 3.06p to 13.06p a share 16/09/20 12:00 GMT. This price is up 76.81% on the same day year-on-year, though far shy of the company’s year-to-date peak of 20.00p seen in mid-April. The company currently has a p/e ratio of 1.36.