Tekcapital (LSE:TEK), the UK intellectual property investment group, said its wholly-owned subsidiary Tekcapital Europe has converted $2.4m of debt owed by MicroSalt into new shares.
MicroSalt develops low-sodium salt substitutes aimed at reducing dietary sodium intake linked to cardiovascular disease.
The Holder converted the full $2m outstanding under a March 2023 convertible loan note and $400,000 of a separate November 2023 note, which had approximately $869,000 outstanding.
The conversion price was set at 16p per share, resulting in the issue of 11.08m new MicroSalt shares to Tekcapital Europe.
The March 2023 note is now fully repaid, while approximately $469,000 remains outstanding under the November 2023 note, alongside any accrued interest.
Tekcapital's stake in MicroSalt rises from 32.46m shares to 43.54m shares following the issue, representing approximately 65% of the enlarged share capital.
News Intelligence what this means for the company
Tekcapital converted $2.4m of MicroSalt debt into equity, raising its stake from 32.46m to 43.54m shares (approximately 65% of the enlarged capital). The conversion retired the full $2m March 2023 note and $400k of a $869k November 2023 note at 16p per share, leaving ~$469k outstanding on the latter. This is a routine debt-to-equity conversion that deepens Tekcapital's control of a portfolio company without new cash outlay.
The conversion consolidates Tekcapital's majority position in MicroSalt but does not materially alter the investment case: it replaces debt service with equity dilution to existing shareholders and signals confidence in the salt-substitute developer, yet the company remains pre-revenue and the conversion itself generates no new capital for operations or commercialisation.
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