The low-sodium salt maker halts trading to push through a debt-for-equity swap and a modest cash call, handing majority owner Tekcapital an even bigger slice of the register.
MicroSalt (AIM: SALT) has suspended its shares after majority shareholder Tekcapital agreed to convert $2.4m of debt into equity, a move the company says will strengthen its balance sheet ahead of a possible $1m equity raise.
Trading was paused as MicroSalt entered AIM's newly introduced 'Capital Access Window', a voluntary suspension mechanism designed to let companies complete fundraisings without the share price gyrating in the interim. The conversion, priced at 16p, a 10% premium to the prior closing price, will lift Tekcapital's stake to around 65% of the enlarged group, before any dilution from the planned placing and retail offer.
Of the roughly $2.9m Tekcapital was owed, $2.4m will now be converted into new shares, wiping out a repayment obligation that had largely fallen due in March 2027. That removes a chunky liability from MicroSalt's books, though it comes at the cost of issuing stock close to record lows and further concentrating ownership in Tekcapital's hands.
MicroSalt gave no indication of the pricing for the proposed $1m placing and retail offer, leaving investors to await further detail once the Capital Access Window concludes. The relatively modest size of the cash call, compared with previous raises, suggests management is reasonably confident in the business's trajectory.
Much now hinges on whether MicroSalt can hit its reaffirmed sales projection of $15m for next year, with margins likely to be the key swing factor for both the company and Tekcapital, whose fortunes remain closely tied to MicroSalt's performance. Shares remain suspended pending a further announcement.
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: Jason D on Unsplash.
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