Salarius launches on Amazon North America

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

02 December 2020

Tekcapital Plc

("Tekcapital", the "Company" or "the Group")

Portfolio Company Update: Salarius, Ltd.

Tekcapital Plc (AIM: TEK), the UK intellectual property investment group focused on creating marketplace value from investing in university technology, is very pleased to announce that portfolio company Salarius Ltd. has successfully launched its innovative SaltMe!® snack line on Amazon in North America. The company commenced sales of all four flavours on the e-commerce platform offering 6 count boxes of 5oz size bags. In January, the company plans to introduce 1 oz bags on the platform to expand consumer purchase options. 

Additionally, SaltMe!® potato chips are now available in all Central Market stores in the USA and Canada.

SaltMe!® potato chips are made with MicroSalt®, a proprietary salt made with micron-size salt particles that dissolves in the mouth significantly faster than regular salt, and as a result, delivers 50% less sodium per serving. SaltMe!® potato chips are Non-GMO, all Natural, Kosher and Gluten Free.

On the B2B front, FXM Ingredients Inc.the B2B sales and marketing partner of Tekcapital in Mexico and Latin America has provided MicroSalt® for testing to eight Mexican snack food companies, including several of the largest producers in the region, with a pipeline of 20 additional Mexican companies to begin discussions in the next 60 days.

Additionally, a leading global snack food company has successfully completed its initial evaluation of MicroSalt® and has proceed to begin consumer testing for potential inclusion with its products.

"We are very excited about the launch of the SaltMe!®  brand on Amazon. Growing our e-commerce business in addition to distribution deals undertaken earlier in the year should help expand market traction for our full flavour-low sodium snacks in 2021 and beyond," says Victor Hugo Manzanilla, CEO of Microsalt Inc.

Market Dynamics

The online share of snack purchases has been steadily increasing, propelled especially in 2020 during the coronavirus pandemic. The category has also observed towards healthier, reformulated offerings[1]. Transparency Market Research recently stated, "Snack products have acquired a prominent place in the households of a considerable populace across the globe due to the COVID-19 lockdown implementations and the lockdown extensions. The preference for 'indulgence-on-the-go' has increased due to the work-from-home mechanism, thus inviting extensive growth prospects for the snack products market."²

According to John Toaspern, Chief Marketing Officer for Potatoes USA, "There was about a 22% increase in sales at retail for potato chips for the period following the implementation of (COVID 19 related) restrictions in the U.S."³

Tekcapital owns 97.15% of the share capital of Salarius Ltd. Microsalt Inc. is an 87% owned U.S. subsidiary of Salarius Ltd.

About Microsalt Inc.

Microsalt Inc is the developer and manufacturer of a proprietary low-sodium salt called MicroSalt®. We are passionate about improving lives with healthier food and are taking the lead in the industry by providing the best low-sodium salt solution. This solution is the only one that delivers real salt flavour, because it is salt. Our new technology produces salt crystals that are approximately one hundred times smaller than typical table salt, delivering a powerful saltiness as the micro-grains dissolve in the mouth, with approximately 50% less sodium consumption.

Additionally, the ultra-small particle size enhances product adhesion, which reduces waste and provides enhanced flavor consistency. MicroSalt® and SaltMe® are registered trademarks of Salarius Ltd., and exclusively licensed to Microsalt Inc.

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed intellectual properties (IP) and provides a range of IP investment services to make it easy for organisations to commercialise university-developed technology. Tekcapital is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in the UK. For more information, please visit www.tekcapital.com

LEI: 213800GOJTOV19FIFZ85

For further information, please contact:

Flagstaff Strategic and Investor Communications                                   +44 (0)207 129 1474

Tim Thompson/Andrea Seymour/Fergus Mellon        

This press release is for informational purposes only. The information herein does not constitute investment advice nor an offer to invest and may contain statements related to our future business and financial performance and future events or developments involving Salarius that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to customers, stakeholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements may be based on the current expectations and certain assumptions of Salarius' and/or Tekcapital's management. Please note that these are subject to a number of risks, uncertainties and factors, including, but not limited to those described in various disclosures. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Salarius or Tekcapital may vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Neither Salarius nor Tekcapital intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

References

[1] https://www.foodnavigator.com/Article/2020/10/21/European-Snacks-Association-chief-talks-future-trends-Health-is-front-and-centre-for-snacks-makers#

² https://www.transparencymarketresearch.com/snack-products-market.html

³ https://spudman.com/article/potato-chip-industry-boosted-covid-driven-retail-boon/