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How do Itaconix Corporation formulas and ingredients contribute to and fuel its sustainability strategy?
CEO, John R. Shaw, joins OTC Markets Group's Eric May to discuss the high performance, cost effective and sustainable ingredients that are key components of products in the personal care, homecare and industrial sectors. Listen to the full hashtag#OTCQB podcast.
https://lnkd.in/eJ2xpvMx
ITX retweeted this with a clever/cheeky attached note to a Guardian news paper social media column: "Sounds like someone needs Itaconix Corporation's new Itaconix® ONZ™ 405 fast-acting odor neutralization."
Guradian
Remote working and whiffy workout wear fuel laundry revolution
Home workers aim to tackle smelly 'athleisure' clothing, save money and be kinder to the environment
My sentiments exactly
Itaconix will be at Mello2024 on Wednesday 22nd and Thursday 23rd May 2024, 9am-6pm at the Clayton Hotel & Conference Centre in Chiswick, London. The annual flagship in-person investor event will feature over 40 companies and keynote speakers such as Lord Lee; Christopher Mills; Georgina Brittain; Gervais Williams; Ed Croft; and many more! If you are new to Mello, you can get a ticket for just £30! Use code NEW2MELLO24
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ITX have been developing products for years and have had a reasonable income from long term contracts that have supported the development.
Now….it appears that this development company is turning into a business! I much admire them not renewing a contract with a long term customer as this releases production capacity for higher yield products/ contracts. This is a turning point to now capitalise on the research and development of the past to turn it into hard cash and profit.
This has been a very well run company from the start…we are now transitioning to a well run money maker!
I have invested a great deal of money here over the past four years, the current SP is irrelevant, it’s the future returns I am interested in. I am very confident that this will materialise big time.
Thanks Elsol this is helpful. The ACF guide is fairly basic. Hopefully a full initiation paper with a valuation and forecasts will follow.
I’d like to reinvest but I’m worried that the share price will get hit on release of the H1 trading update as revenues will be markedly lower than the previous trading period.
For now a free commercial investment case overview available but no fcsts or val yet which comes on full initiation paper later. ACF Equity Research has published a new research note on: research tree
Itaconix plc.
Please click on the below title to see the full release:
Itaconix Plc Core Investment Case 01052024
Cheers Elsol
Looks to be a very well connected guy?
https://www.cleaninginstitute.org/about-aci/aci-staff/brian-sansoni
ATB
AJP
Just noticed this relatively new guy at ITX - Bill McClure - Director of Communications
Product owner responsible for overseeing online application and website creation from inception through completion. Direct responsibility for requirements gathering and defining processes, workflow and functionality. Guide design and development teams. So Bill we await your new web site in coming weeks!!
Manage discovery and site architecture processes. Work with stakeholders to define website architecture; define and document applications and database schema. Coordinate technical development.
Manage teams of programmers and designers to create web-based solutions for clients in a wide variety of industries including eCommerce, Education, Manufacturing, B to C, High Tech, Biotech and Health.
Web Producer: Responsible for client relationships across full life-cycle from pre-engagement, through project development and deployment and to maintaining long-term partnerships.
Responsible for maintaining relationships as the development partner with design and branding agencies.
Nice LinkedIn call out today from Brian Sansoni - Senior Vice President, Communications, Outreach & Membership at American Cleaning Institute:
At #AOCS2024, Yvon DURANT of Itaconix Corporation shares details about a new class of bio-based polymers that "not only deliver top performance but are non hazardous, facilitate concentration and a reduction in both natural and synthetic components and review their short term and long-term environmental fates."
Always glad to connect with innovators from ACI member company Itaconix Corporation. Great to say hello to John Fernald and John R. Shaw at hashtag#AOCS2024 Annual Meeting & Expo in Montreal.
Nice booth too! Commented on by Greg Smith
Chief Business Development Officer - Verdant Specialty Solutions
34+ years of sales and marketing experience in specialty chemicals and ingredients businesses
• 3.5 years VP of Americas for Locus Ingredients, bringing a Greentech Start-up to market with Biosurfactants.
• 30 years of Alkoxylate experience, including the sale and purchase of EO & PO.
• 30 years of commercial experience covering EO & PO derivatives into commodity alkoxylates, specialty alkoxylates, and surfactants.
• Was on the commercial team that launched Croda’s Bio EO based surfactants at their Atlas Point, DE site.
• 18+ years of sales and marketing Greentech/Sustainable products while at Croda and Locus Ingredients.
• 15 years as Channel Director, Supply Chain Director, and Sales & Marketing Director with Croda.
• 13 years with OxyChem & Lyondell/Equistar in commodity chemical sales, including EO & PO.
• Commercial lead for household/ I&I and industrial businesses at Croda’s North American business.
• Sustainability champion focusing on USDA Bio Preferred and EPA CleanGredients to deliver greener and more eco-friendly ingredients to end-using markets.
• B2B digitalization expert for marketing, business development, lead generation, and e-commerce
• Deep experience in supply chain management, procurement, account management & distribution
• Significant key account management experience – oversaw global and national accounts at OxyChem and Lyondell/Equistar
UK Government backing NHS suppliers with ECO / Low carbon supplies now - must be a good cleaning account at some point :-)
"Established supplier looking to align with upcoming hashtag#NHS sustainability requirements in April 2024, the hashtag#DHLNetZero initiative is for you!
Join our FREE half-day in-person workshop led by NHS London Procurement Partnership on Tuesday 20 February or 12 March to benefit from:
🌱 Relevant resources to help you adopt hashtag#ecofriendly practices
🌱 Learning Net Zero concepts relevant to the sector
🌱 Bespoke support in developing your Carbon Reduction Plans
Yes Elsol, as I posted April 4th....
'Transition to a more lucrative customer seams to be the 'go' here.'
Amongst all the deramping, many of us thought this was the strategy.
ATB.
We had the strange decision on past customer contract now we start to see drip drip of what else is in pipeline and volume replacement opportunities at better profit levels..
Good news. Phosphates are a major problem. In the UK for example, the ecological harm they cause has resulted in a moratorium on new housing development in some large river catchment areas, causing a backlog on delivery of thousands of homes.
This wont solve that of course, but I can see how these wider problems might well encourage take-up of the ingredients, and possibly with further govt legislation on use of phosphates giving a further helping hand?
Hi
Good that they have launched this to coincide with the
American Oil Chemists' Society Annual Meeting
Montreal Apr 28-May 1 #AOCS2024
https://lnkd.in/ewyVf8cD
Chance to get even greater reach and into the hands of formulators, entice some of the big players to come on board?
ATB
AJP
Nice update.
ATB.
I’m still sat on the sidelines for now but thought I’d contribute a potential positive tail wind for Itaconix which I think has been overlooked.
In its most recent presentation Itaconix commented that it was unaffected by the Suez Canal shipping issue as all its raw material comes from the opposite direction. This has been mentioned on here.
But what I don’t think has been elaborated on is that this could give the company a financial and strategic advantage over other chemical companies who do traditionally use the Suez Canal shipping route as they have seen a 300% increase in shipping cost which they will have to pass on to customers.
It might encourage more companies to switch their products to include Itaconix formulations.
Thanks for that.
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)
Looks like at least ITX senior team will be there:
3x Social media from team: Meet Itaconix at the American Oil Chemists' Society Annual Meeting
Schedule a meeting with CEO John Shaw. Learn how to increase performance, safety and sustainability without increasing cost using Itaconix’s plant-based technology platform.
Montreal Apr 28-May 1 #AOCS2024
https://lnkd.in/eJ5BhNDY
This will interest some... 'Researchers and manufacturers have been exploring alternative materials, including polymers, to replace PFAS in different applications.'
https://thehill.com/policy/energy-environment/4604573-epa-declares-forever-chemicals-pfoa-pfos-hazardous/
The threat of financial penalties always proves the stick to be more powerful than the carrot.
ITX LinkedIn team now posting on average almost every day for last month.
John S has been recently recognized in Bioeconomy daily digest for his contribution which I was unaware of. Go see for yourself there is lots now going on in the ITX market awareness building strategy. Soon new eeb site to back up the strategy.
It doesn't really matter....as long as they are financial motivated to excel/outperform and drive the business strongly