Low-sodium salt producer MicroSalt has completed a multimillion-pound fundraising to ramp up its inventory to meet anticipated demand from snack manufacturers looking to make healthier products.
The AIM-listed group, which produces a patented natural salt containing 50% less sodium than the traditional offering, raised £2.3m in the oversubscribed round by selling more than three million shares at 70p each.
It will use the majority of the proceeds from the raise on inventory after receiving commitments for an additional 290 tonnes in bulk orders for 2025, which is expected to further increase as MicroSalt is rolled out over new product lines.
Based on existing orders for the first quarter of the year and expected orders for the rest of 2025 for existing product lines, B2B volumes are projected to increase more than 10 times than manufactured in 2024.
MicroSalt will also use a portion of the money to support marketing efforts for its newly launched quick service restaurant (QSR) product, initially targeting the french fry market and multinational fast food chains.
The rest of the cash will go towards bolstering working capital and R&D associated with further line extensions of MicroSalt to address market demand in the ramen and noodle market.
“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 CEO Rick Guiney.
“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.”
He added that, last month, the US FDA proposed new short form nutritional labels for packaged foods to show saturated fat, sugar and sodium levels as being 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,” Guiney said.
MicroSalt floated on London’s junior market in early 2024 with a market cap of £18.5m.
Shares surged on today’s fundraising announcement by 20.4% to 84.3p, almost double the price of the IPO.
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