(Alliance News) - Tekcapital PLC on Thursday said its investee MicroSalt PLC has commenced trading on AIM, with the low-sodium salt producer also celebrating a successful fundraise.
Shares in MicroSalt were up 14% at 49.11 pence on Thursday afternoon in London. They commenced trading that morning with a 43p per share initial public offering price.
However, at the same time Tekcapital shares were down 13% at 10.25 pence in London.
Microsalt, which is commercialising its patented technology to produce low-sodium salt for manufacturers and consumers, has a market capitalisation of approximately GBP18.5 million.
Microsalt also announced its "successful fundraise" of around GBP3.1 million, through issuing new shares at 43 pence each.
Chief Executive Officer Rick Guiney said his company was "delighted" by the IPO and fundraise, "which is an important step in our development and provides an excellent platform for growth."
MicroSalt said it will use the fundraise's net proceeds to support it and its US subsidiary's ongoing development; sales and marketing of its applications; research & development for product line extensions; and general working capital, including to increase its headcount.
He added: "MicroSalt is extremely well placed to capitalise upon rising demand for lower sodium products with our disruptive, proprietary product and manufacturing process."
London-based Tekcapital, an intellectual property investor, said it holds a 77.24% interest in Microsalt. At the listing price of 43p, its stake was worth approximately GBP14.3 million.
Tekcapital CEO Clifford Gross commented: "We’re delighted MicroSalt has secured the required capital to meet its immediate growth opportunities...London remains an attractive destination to raise growth capital.
"In our view, MicroSalt's success proves, despite challenging macroeconomic conditions, that London has the ideal financial ecosystem for innovative early-staged technology companies to raise capital and scale their business."
Microsalt is currently the second Tekcapital investee to list on AIM, after medical device developer Belluscura PLC completed its IPO in 2021.
By Emma Curzon, Alliance News reporter
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