MicroSalt (AIM:SALT), the AIM-listed maker of full-flavour natural salt containing roughly 50% less sodium, said Tekcapital Europe will convert $2.4 million of the approximately $2.9 million in convertible loan notes it holds in the company.
The move removes the associated repayment liability from MicroSalt's balance sheet, most of which had been due in March 2027.
Tekcapital Europe, a wholly owned subsidiary of Tekcapital, holds two notes: one dated 1 March 2023 with $2.0 million outstanding, and one dated 7 November 2023 with roughly $869,000 outstanding.
It has elected to convert the full $2.0 million under the March 2023 note and $400,000 of the November 2023 note, leaving $469,000 outstanding on the latter. The conversion price was set by the holder at 16p per share, a 10% premium to MicroSalt's closing price on 9 September, resulting in 11.08 million new shares.
Following admission, Tekcapital plc's holding will rise to 43.54 million shares, roughly 65% of MicroSalt's enlarged share capital of 67.19 million shares.
News Intelligence what this means for the company
Tekcapital Europe has converted $2.4 million of its $2.9 million convertible loan notes into MicroSalt shares at 16p per share, eliminating a near-term debt obligation due March 2027 and leaving only $469,000 outstanding. The conversion dilutes the share count by 11.08 million shares, raising Tekcapital's stake to 65% of the enlarged capital, but removes a material liability from MicroSalt's balance sheet—the $2.4 million converted represents 83% of the company's reported $2.9 million borrowings as of end-2025.
The debt-to-equity swap strengthens MicroSalt's near-term liquidity and reduces refinancing risk, but at the cost of significant dilution: Tekcapital now controls 65% of the company. For minority shareholders, the trade-off hinges on whether the company can sustain its FY2025 revenue growth (from $0.75–0.8m to $2.1m) and path to profitability—the $3.2m net loss in FY2025 remains material relative to revenue.
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