International law firm Bird & Bird LLP has advised MicroSalt plc, a US based business commercialising a patented technology to produce full-flavour, low-sodium salt for food manufacturers and consumers, on the first AIM market initial public offering (IPO) of 2024.
The proceeds of the fundraise will be used to support the development of the company and its group as well as sales and marketing of MicroSalt’s applications with customers.
MicroSalt is a spin-out from parent company Tekcapital plc, which provides a range of technology transfer services to help organisations evaluate and commercialise new technologies. Tekcapital is a long-standing client of Bird & Bird and the MicroSalt IPO is the third spin-out listing by Tekcapital of companies it has incubated (the others being Belluscura plc on AIM and Innovative Eyewear Inc. on NASDAQ).
While 2023 presented tough market conditions for the equity capital markets, in December 2023 the FCA published its detailed proposals on the new Listing Rules regime in Consultation Paper CP23/31. The proposals represent a significant relaxation of the Listing Rules and are aimed at making London’s capital markets more attractive to international companies.
Clive Hopewell, head of the International Capital Markets practice at Bird & Bird, said: “We were very pleased to advise MicroSalt on their IPO, which will help them to realise their strategic aims. The fact that MicroSalt was developed and nurtured by our longstanding AIM-listed client, Tekcapital, which itself listed on AIM in 2014, is testament to the opportunities for growth presented by the AIM market. It is positive that US growth companies are looking at AIM as a listing venue, particularly given the upfront and ongoing costs of listing on the US markets; it is not all one way traffic to the US markets as some commentators have been claiming.
“I believe the outlook for international listings in London, though still challenging, will be more upbeat in the next couple years. The significant reforms to the Listing Rules, particularly around secondary listings on the Main Market, will be beneficial to overseas companies looking to raise capital in London.”
Rick Guiney, CEO of MicroSalt plc, said: “The assistance we received from Clive and his team has been truly outstanding. Their knowledge and expertise of the market, in addition to their flexibility and commitment, proved to be a key component to the success of our listing and we are looking forward to continuing our relations with Bird & Bird.”
Dr Clifford Gross, CEO of Tekcapital plc said: “We are very pleased to list MicroSalt in the UK. Britain is home to many of the world’s leading food companies including Unilever, Compass Group, Associated British Foods, Ocado, Tate & Lyle, Nomad Foods, Greggs and many others. The goal of MicroSalt is to deliver the first full flavour low-sodium salt for food manufacturers and consumers, to help reduce excess sodium consumption and hypertension, a leading contributor to cardiovascular disease (CVD).”
According to the British Heart Foundation approximately 7.6 million people in the UK have cardiovascular disease and 174,000 died from it in 2022. In addition to the suffering and loss of life from CVD’s the cost to the British economy is estimated to be £25 billion each year. Approximately half of heart attacks and strokes are associated with high blood pressure.
Globally, according to the World Health Organisation “An estimated 1.89 million deaths each year are associated with excessive sodium intake, a well-established cause of raised blood pressure and increased risk of cardiovascular disease. Reducing sodium intake is one of the most cost-effective ways to improve health and reduce the burden of noncommunicable diseases, as it can avert a large number of cardiovascular events and deaths at very low total programme costs.”
