The low-sodium salt maker secures fresh working capital as it scales up supply to major snack food producers.
MicroSalt (AIM: SALT) has raised around £1.4m through an oversubscribed placing at 14p a share, as the low-sodium salt specialist gears up to increase deliveries to some of the world's largest snack food companies.
The subscription element of the fundraise closed significantly oversubscribed, with a further £140,000 expected from a director subscription taking total proceeds to about £1.4m. Shares resumed trading on Thursday at 14p, in line with the placing price, after being paused under a 'capital access window' designed to widen the offer to retail investors.
Each new share issued carries a warrant exercisable at 14p over three years, a sweetener that is likely to have drawn in new investors and could bolster MicroSalt's cash position further down the line if exercised. The company said the proceeds would be used for general working capital purposes as it pushes towards $15m in revenue next year, having already passed the milestone of 1 billion servings of its low-sodium salt earlier this year.
The raise follows Tekcapital, MicroSalt's majority shareholder, converting debt owed to it into equity, a move that tidied up the balance sheet and removed the prospect of the company having to find $2m in early 2027.
MicroSalt is also opening a retail offer to existing shareholders of up to £100,000 at the same 14p price from 25 September, giving smaller investors a chance to participate on the same terms. Its longer-term prospects will depend on delivering the promised revenue growth while maintaining healthy margins as it scales up production for major snack brands.
This report is based on MicroSalt’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Norbert Braun on Unsplash.
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