PYX Resources: Achieving volume and diversification milestones. Watch the video here.
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Hi SI - re: "They never have explained why they needed to make such a large capital raise last year. That’s a lot of money just sat in the bank at the cost of shareholders who suffered the dilution." THEY HAVE EXPLAINED IT FULLY.
In fact, the additional capital raise was amazing - it was placed at c.250p so "they" rather than "us" appear at the mo. to have taken their shirts to the cleaners rather than the other way round - great to get so much dosh on BS at such a high price per share (+40% premium to the present mkt cap? )... also the added cash is a great risk mitigation safety blanket and allows us to value maximise all our IP extensions/development pipeline/marketing leverage in EU and wider market diversification/investment for web site and possibly flexible added plant and equipment etc etc etc- IT WAS AN AMAZING fund raise if you think about it as a LT investor!
Thanks AJP - just noticed this too; stain removal for laundry.
Hi Smart
Unless the articles or shareholders’ agreement contains provisions to the contrary, companies can disapply pre-emption rights in certain situations by passing a board resolution or a special resolution of the shareholders at a general meeting – this requires 75% approval from shareholders who are entitled to vote, either in person or by proxy. Companies may choose to do this to raise capital from third-party investors. Importantly, this is a regular request on the AGM agenda for UK listed companies and is split into two resolutions, a resolution for an unrestricted authority and a resolution for authority specific to acquisitions or a specified capital investment only.
Think that this is to give them the power to make that decision without having to go back to the shareholders?
That is if I am reading this correctly
ATB
AJP
AJP please can you re-read resolutions 6 and 7.
It uses the word “disapply”. I took this to mean they are not proceeding?
As highlighted by Elsol
In particular point (6), possibility of a European plant?
I have managed to get hold of the new Brokers Note entitled "FY results: strong cash flow".
Key points:
1. Valuation target retains at 325p with BUY rating (currently mkt price today is only 47% of Broker price target).
2. Broker valuation rationale :
“Our target continues to be based on two arguments:
a. the multiples applicable to a mid-cap chemicals company, and;
b. the value which we believe is applicable to Itaconix's differentiated market position and which would be relevant to an industrial third party." (so Broker is considering full opp. pipeline market value/+DCF going concern value to possible acquiror). "At our 325p target the stock would trade at 5.1x/3.7x 2025E/26E EV/revenue, which we believe would be highly attractive to an industrial buyer looking at markets with gross margins in the hundreds of millions of dollars annually.”
3. More discussion of underlying customer portfolio growth WITHOUT the 'low margin' customer - Observations:
Underlying revenue growth of post loss “core” business is v. large: “Excluding the major North American detergent merchandizing customer, we understand 2023 revenue was $3.6mn, and therefore growth from other customers in 2024E (largely derisked) is c.70% for 2024. We expect this growth to be across Itaconix's end markets, in cleaning, hygiene, beauty, and in various new industrial applications. We also expect growth to continue in 2025E at above 50% y/y."
4. Cash on Balance Sheet is sufficient until after FY 2026 when ITX business transitions to op. cashflow positive
5. Manufacturing building facility lease renewal for another 10 + years (confidence?): "In December 2023, Itaconix renewed the lease on its existing building to 2034, resulting in the recognition of a c.$2mn asset and c.$2mn liability under IFRS16."
6. Possible asymmetric Broker treatment (revenues v’s plant capacity) – the capex is still quite high during 24E/25E/26E => aggregate of $4.0m (about 2x a plants worth?) and ave recent depreciation is c$0.2m. So looks like we are replacing all the plant assets plus adding another one unless there is considerable re-tooling going on. Unless I have missed something there appears to be a mismatch since when we heard in the management call the other day – a denial for any new plant at this time for the foreseeable future. I’m scratching my head a little on this and can only assume the revenue line is light or the capex line is heavy. You can DYOR on this but makes sense not to over commit to possible upside revenue and be full on the cost/capacity area so perhaps that is the theme here - forecast prudence.
7. John said on the call that there should be some "news" in the short term (RNS) for diversification wins so I expect we will know more when that disclosure is made (leather/paints)
ATB
AJP
Please see resolutions 5,6,7 below. Does this mean ITX were planning to make an acquisition but are no longer proceeding? They never have explained why they needed to make such a large capital raise last year. That’s a lot of money just sat in the bank at the cost of shareholders who suffered the dilution.
5. To grant the Directors authority to allot shares.
Special Resolutions
6. Subject to the passing of Resolution 5 to disapply statutory pre‑emption rights in relation to the allotment of equity securities.
7. Subject to the passing of Resolution 5 to disapply statutory pre‑emption rights in relation to the allotment of equity securities for the purposes of financing an acquisition or a specified capital
investment or making a follow-on offer.
Congratulations to our friends at MomRemedy, recognized by #BetterHomesAndGardensMagazine for the best stain remover
https://lnkd.in/eGRDPxDz
https://www.linkedin.com/posts/itaconix-corporation_betterhomesandgardensmagazine-activity-7197204216774303744-v0WP
ATB
AJP
Report & Accounts and Notice of AGM
The Company's statutory accounts, together with a Notice of Annual General Meeting, are due to be made available on the Company's website (www.itaconix.com) and posted to shareholders on 19 April 2024. Copies will also be available at the Company's registered office, Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT, United Kingdom. The Annual General Meeting is due to be held at 2:00 pm BST on 20 May 2024 at Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT, United Kingdom.
ATB
AJP
Hi DB
Think that Thordon was taking a bit of a back seat as he was caring for his terminally ill father.
Our thought are with him during this very difficult time.
Any good at German? Think this is very similar to comfort laundry conditioner in the UK, will be made in large quantities.
https://clovingermany.de/storage/2024/04/Auflistung-der-Inhaltsstoffe-Lammi-Weichspuler-Lovely-Pink.pdf
https://www.ceneo.pl/159588488
ATB
AJP
Where‘s Thordon our main research sleuth these days? Have you sold up Thordon - understandable if you have irs been longer than expected. Hopefully good things come to those who wait.
This is significant: The Pampers diaper is composed of an average of 3.97 g of sodium polyacrylate, linked on a thin thread, and an average of 0.71 g of cotton. Huggies has an average of 1.88 g of fine powdery sodium polyacrylate and an average of 6.97 g of cotton.
I am sure the CEO and his team will be trying to replace that acrylate word with ITACONATE
Yes, ITX has a secondary listing on the OTCQB index in the US to enable US investors to invest using dollars.
https://itaconix.com/wp-content/uploads/191218-OTCQB-listing.pdf
I'm pretty certain tha ITX has a dual listing in the UK and USA
A companies valuation isn't just about revenue, its about how the market values future performance, its assets, the management team and sentiment within the market that its listed on.
London is flat at best, the US market is much more dynamic.
ITX is clearly undervalued in London.
So how does moving to another market increase revenue?
Clearly other companies big and small are considering their options -
https://www.bbc.co.uk/news/articles/cl5k58x9g83o
Its clearly the case that an AIM listing isn't working for Itaconix and it would probably be the case that even a full market listing would also be pointless.
itaconix is now, I think, mature enough to break with its historical roots in the UK and seek a US listing, probably on the NASDAQ.
Also most of its business is transacted in the US and the Euro zone - the UK is just an irrelevant backwater for the company - move where the action is!
Yep you are right it will probably take a fair while Surfie - but clearly HE doesn’t think he should have sold (he has bought more in fact) - which is what holds my interest, among other things.
Good evening Elsol, you're correct I don't because if I did I wouldn't still be crying!
As for the CEO, he probably should have sold don't you think Dougerboy? It's going to take a long while for the S.P. to go up 5 times if you look at its current trajectory.
Surfie, re: "Until I see a reverse of fotunes it would appear so yes" I didn't assume you solely had control over the share price and if you did you wouldn't need to chat on this BB.
Fair Point Surfie. But I guess the CEO thinks not. He didn’t sell out either when it was 5 times where it is now, a couple of years back. He clearly believes it‘ll look a whole lot different ie better in the future.
"So then as a consensus are we really saying that the ITX business is now only worth c. £10m GBP (excluding cash on BS) as sum of the below items"?
Until I see a reverse of fotunes it would appear so yes.
Well, the MMs pricing tactics fueled by certain doom mongers on this BB have worked magic on some non-sticky handed sellers. So then as a consensus are we really saying that the ITX business is now only worth c. £10m GBP (excluding cash on BS) as sum of the below items?
1. Existing customer base
2. New EU add-ons (detergents)
3. Large Pipeline being developed in other diversification markets
4. Other residual goodwill for the large patent portfolio
This is crazy oversold territory in the short term - the MM bots have generated some trading volumes though making them commission through fear but I sadly regret those chased out in the process!
Completely agree with you, Clueless.
Yes, it could temporarily go down to 2p in 'old money'. It's a bit like your interest in NCYT - 12 quid 3 years ago and now standing @ 64p.
The business has fundamentally changed unfortunately. From steady incremental growth backed by a promise of 'big impact' product lines in the future, we are now hawking our wares to individual (application specific) customers. ITX really needs to find a market for its product. I feel superabsorbent is the only viable target, I'm not convinced they have found a strong proposition in other markets (paint, leather, detergent etc.). The problem is, without knowing the details of R&D status of superabsorbant, investors are left to take a lot on faith. In other words, the promise of jam tomorrow.
Death cross or no death cross ❌ it's going to a £1 , " 2p old money " disappointing really , but it moves fast on good news so £3 maybe with the wind behind it one day . Imho