Salarius Mexican Distribution Agreement

RNS Number : 9375Z

Tekcapital plc

24 September 2020

 

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.

24 September 2020

Tekcapital Plc

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

Portfolio Company Update: Salarius, Ltd.

Salarius Partners with FXM Ingredients Inc. to Distribute MicroSalt ^® in Mexico

Tekcapital Plc (AIM: TEK), the UK intellectual property (IP) investment group focused on creating marketplace value from investing in university technology, is very pleased to announce that its portfolio company, Salarius Ltd., has signed a partnership agreement with FXM to lead B2B sales and marketing of MicroSalt ® in Mexico and Latin America ("LATAM").

FXM provides the highest quality food ingredients to companies   worldwide. FXM provides integral solutions including logistics and technical consulting on the development and innovation of products. They are experts on market trends for the food industry in Mexico and Latin America.

This partnership marks the first time that MicroSalt ® will be sold outside the United States. The strategic sales plan includes securing meetings with the top snack food manufacturers, flavor houses, contract manufacturers and other food companies looking for full flavor, low sodium alternatives, along with attendance at food trade shows such as the Food Technology Summit and Expo in Mexico City.

"FXM is thrilled to enter into a strategic partnership with Salarius. We are excited to introduce MicroSalt® as a solution in our portfolio for the new Mexican labeling concerning the reduction of sodium content. Integrating Salarius into our family of world class manufacturing partners is complimentary to the FXM business model and is in alignment with our strategic vision for growth." says Gilberto Olvera Hernández, CEO of FXM.

"We are looking forward to working with FXM to bring the full flavor-low sodium benefits of MicroSalt® to Mexican consumers to help lower their sodium intake. Our collaboration with FXM will introduce MicroSalt to food companies in Mexico and LATAM that could benefit most from our ground-breaking, on-trend and innovative ingredient," says Victor Hugo Manzanilla, CEO of Salarius.

MicroSalt® is a proprietary, patented salt made with micron-size salt particles that dissolve in the mouth significantly faster than regular salt, delivering an increased sensation of saltiness with much less salt, and as a result, approximately 50% less sodium. MicroSalt is Non-GMO, all Natural, Kosher and Gluten Free.

The Market

In Mexico, 2020 revenue in the snack food segment is projected to be US$5.68 billion. The Mexican market is expected to grow annually by 9.1% (CAGR 2020-2025¹. The Mexican Ministries of Health recently passed a new law on 27 March 2020 mandating a new front of packaging labeling (FOPL) system for all packaged food. Under NOM-051, products that exceed 350mg of sodium per 100g of product, will need to prominently display the warning, Exceso de Sodio ("Excess Sodium")².

About FXM Ingredients Inc.

Since 1988, FXM Ingredients has been recognized for supplying the highest quality food ingredients that comply with international standards and regulations, manufactured by world leading companies in their field, which we represent exclusively.  We offer integral solutions through professional technical assistance in the development and innovation of products, adding a wide knowledge of the global and regional trends for the food industry.  At FXM Ingredients, we are committed to always satisfy our customers' highest expectations, adding value with our services and product portfolio.  For more information please contact:  [e-mail]  or visit www.fxm.com.mx

About Salarius ltd

Salarius, is the developer and manufacturer of a proprietary low sodium salt called MicroSalt®. Salarius is passionate about improving lives with healthier food and is taking the lead in the industry by providing the best low-sodium salt solution, based on the mechanical transformation of the salt particle itself. This solution is the only one that delivers real salt flavor, because it is salt. The 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. To learn more please visit https://salarius.co/ .

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed intellectual properties 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 Oxford, in the UK. For more information, please visit www.tekcapital.com

LEI: 213800GOJTOV19FIFZ85

Tekcapital owns 91.7% of the share capital of Salarius Ltd.

For further information, please contact:

Tekcapital Plc		Via Flagstaff IR
Clifford M. Gross, Ph.D.
SP Angel  Corporate Finance LLP  (Nominated Adviser and Joint Broker)		[phone]
Richard Morrison / Charlie Bouverat (Corporate Finance) Abigail Wayne (Corporate Broking)

Flagstaff Strategic and Investor Communications    [phone]

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.statista.com/outlook/40110000/116/snack-food/mexico

2-   https://www.bakeryandsnacks.com/Article/2020/04/03/Mexican-nutrition-labelling-law-gets-green-light#

MicroSalt® and SaltMe® are registered trademarks of Salarius ltd.

 

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