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Correction Thordon: the contingent consideration you refer to (note 17 in the last annual report) actually expires at the end of 2022.

Fair comment JD - either way, they need to get that business moving along the growth curve!

Some thoughts on the doldrum share price & potential beneficiaries...

I knew had read somewhere - it was note 17 of the last annual report - that there is a contingent consideration payable annually at a value equivalent to 50% of the incremental revenue growth compared to the previous year’s. Crucially, it’s payable in shares “at the then prevailing price” to JS & YD.

So let’s imagine, when the 2021 books close, annual revenue is $4.5M ie $1.2M incremental growth on 2020. That means the contingent consideration for 2021 is $600k payable in shares at the prevailing price on 31.12.2021.

At a share price of 5p, that is an award of some 9M shares and at 10p “only” 4.5M. John Shaw and Yvonne Durant are in this for the long haul in my view and they will be happy if they get 9M shares instead of 4.5M. They know what is coming down the tracks, as do presumably the last IIs who invested at 12p.

This contingent consideration bonus expires end of next year (2022). As I’ve often said 20p by ‘23 - or maybe more...

On the above basis I expect some upwards movement in January - just my musings, which may be wrong!

AJP, good idea - send him an email & let us know if you get a reply.

Hi AJP, nope not sure what the current spend on R&D is, but if we look at the history of Itaconix and the capital invested to date, over the past years, a significant proportion (I would say $Millions) has gone into researching, developing, and protecting the company’s unique IP offerings relating to Itaconic Acid based polymers, giving us our moat of patent protected IP). The focus now is and has been on commercialisation. And so I personally would welcome some (details not needed) company information on prospects & successes being lined up by the new VP Sales (Monna Manning). She’s been in the job a year, and the company gave her hiring a significant mention. So it would be good to hear if she has been managing to add some significant prospects into the sales pipeline, worthy of her previous mentions!

Correct FG2.0. That ain’t happening.

JD, lootg, in my opinion is correct, a VP appointment in the US corporate world - was there myself for 20 years - is acknowledgement and recognition of the seniority of a designated role in an organisation. It does not immediately confer an immediate god given right to be someone who is external investor facing “on the front line” - but instead recognises the future ability of such a hire to be so. On that note, let’s all be patient for a couple of years, or at least until my 20p target is reached, lol.

Verney, thank you for your post. When did you invest in ITX? I’ve been here a while - still (slightly) in profit! I was intrigued to read of your Eurofighter & MSOW/JP233 Connection. I worked on those too. Where were you based and when was that?

Verney ITX are selling stuff which is IP protected. They sell to Nouryon. That is impressive. ITX are on the Launchpad of their revenue growth curve - at least they’ve started on it. I’m also a invested in QFI, maybe they’ll get to the same interim destination where ITX are already at. Your question on the new VP Sales Mona Manning has merit, given that she was presumably hired to accelerate the delivery of the targeted profitable revenue growth. I’ll be asking that myself at the next Q&A - but selling cycles in ITX target industries, at time of dislocation, are not quick.

Hi HSD it didn’t go to 20p. It was a 6 month “leap” from 2p last qtr 2020 to 16p mid 2021. When did you invest?

I just have. Sub 5p.

I’ve spent more than 2 hours looking Thordon lol. Anyway managed another sub 5p purchase 100806 @13:13.

That could be a slam dunk Thordon. Well researched, thanks for that.

Nice one AJP. Some good news on the supply chain front, still plenty of Itaconic Acid raw material shipping from Qingdao into the US (not just to ITX, of course). See attached link.

https://www.seair.co.in/us-import/product-itaconic-acid.aspx

Hi AJP - the Ops Director will im sure be using the downtime opportunity to rejig/optimise operations in readiness for a restart. Looking forward to hearing of them getting manufacturing restarted better than before.

Bravo Thordon, keep on sleuthing!

No idea Finncapp, but any lower and I’ll be adding. Here’s why:
1) https://docs.google.com/spreadsheets/d/1W9Oc9CG8PQVuHaH4u0syfoDKa7GOtrPGzAkMZ8Apmwg/htmlview#gid=0

2) the last II round at 12p was made by folk with the view that the Market Cap of the company - more than twice where we are now - will substantially increase, through delivery of the (delayed, granted) profitable growth curve, all outlined here:
https://www.proactiveinvestors.co.uk/news/downloadResearchPdf/430664

20p by ‘23, still my target.

A thoughtful post Thordon, thanks.

Will have a look SmartInvestment, thanks.

All happening in my hometown of Glasgow just now. What are the chances of a major Itaconix new product release during the COP26 UN Summit? It would be good timing...