Member Info for Elsol

MMs trying to lure buyers in but buyers holding for more clarity on solid trajectory. feel sorry for sellers having to sell or being ' feared' into selling by this constant drip messaging about tariffs and "mkt volatility" connected to China etc that in truth shouldn't be striking us since a massive downside discount is already priced in here for sure! Double bag by December? Time to start buying....?

Dear Loot - sorry to hear you jumped off ship in Q2 2024 with ITX's new strategic direction announcement. In addition further items/ thoughts that perhaps you have not seen; there is a post last few days where I identified Harke Group as possibly distributor / agent mainly in GER/SWISS/AUT mkts and there is a major recent manufacturing equipment collaboration in place that aims to extend the value added for reformulations and plant scale capability/innovation. In addition, the new SPARX program multiplies the leads one can access via other GREEN supplier partnering networks. So I think market access and impact are being leveraged quite aggressively now is my informed take on 2024 H2/2025 H1/H2. There are not many companies can grow at 40%+ p.a. in the spec chem area and we are doing it at the moment albeit from small base and as a result not sure when we get SP catalyst to re-rate.

Just adding:

"I kind of know I have a decent bundle of ITX nuggets of gold here in my pocket, but today one can only sell them as bronze and whilst that's massively disappointing, I still know they are gold and will repay in the future at full gold market value with the upside of possibly diamond with the right M&A buyer and trade sale."

IMO, its certainly not dilution since the last deal at 5.1p was excellent for business resilience and ITX's ability to diversify the IP/go to market platform (funding not raised at a SP discount/ in fact it was over-subscribed). I think it is to do with the investment horizon of most of our LTHs (say, subset of the 2019-2022 investors), which possibly had in their minds a reasonable "medium term" investment horizon limit of FY 2023/24 but not "medium term + 1-2 years" (e.g. FY25/26). They had a shorter expectation for payback at a big premium. But today, given 'ITX 2024 new business strategy' and execution success everything looks majorly on track for 2025 delivery, but, say, 1-2 years behind expectation for some/many investors (for me too). When wider external investors realise that $10M of ITX revenue is nailed on (and more 30-40% growth to come), with the right news catalysts the SP will upgrade (given obvious derisking and micro cap discounts unwinding). That could happen any day with a few really good sequential RNS announcements or in early April if the mgt outlook is as positive as we think right now. It could also happen with possible M&A at any point, and that's why I'm still invested for what will come...I also believe new catalysts will bring in new investors to replace those selling at under intrinsic value today. Overall, I do believe if I step forward 11 months I don't think the present SP will be anywhere near it is today, I just don't know when the catalysts will come during those 11 months.

At least you only crystallise this SP level when you sell! Major value gap to net worth clearly at the moment so great for new incoming investors but I'm confident that in reality the business enterprise value & IP is worth far greater as endorsed by Broker price target (unchanged) and professional investor round so await more 2025 catalysts from SPARX and updates on other new channels to market (or April mgt fcst update).

Noticed the ITX LinkedIn content on Itaconix® TSI® 422 - got a like from Daniel Neubner, Managing Director Switzerland bei Harke Group, Mülheim an der Ruhr, North Rhine-Westphalia, Germany

ITX are probably leveraging Harke in Germany/Switzerland – they appear to have many partnerships in place:

https://shop.harke.com/harkestore/en/content/harke/partners

We discover upcoming trends, support modern lifestyle, understand consumer needs and offer functional solutions with more than 55 years’ experience in chemical distribution serving the Home Care, I&I and Personal Care industry. About HARKE

“The last 55 flourishing years result in our main ambition: Being your partner of first choice.

In order to make your success our business, we are continuously growing our portfolio of high quality products and value-adding services - all from one hand, with one responsibility.

In combination with our strong technical expertise, customer support that goes the extra mile and absolutely reliable logistics and legal services we aim to create value for you.

We are committed to understanding your business, anticipating your needs and help meeting your chemical and plastics distribution, formulation and contract packing challenges!

Let’s grow further together!" We can offer a substantial technical and research service on top of a synergistic and extended range of specialties and commodities incl. surfactants, builders, biocides, bleaching agents, rheology modifiers and specialty additives across the globe. Discover our cleaning and cosmetic solutions in more than 60 countries and get in contact with our technical and commercial team.

agree mike - itx business fundamentals are so strong now - we are definitely over-sold as a share given limited real impact of trump's current policy on itx (with multiple strategic business reaction options). trump cannot easily raise the import tariffs to 20%+ on all goods on china for prolonged periods (all industry/value chains) since he would start to have major public opposition/demonstrations/rallies at the white house from small/mid-sized us businesses particularly. from here, i think his escalation options are more limited and likely to be focused on finished goods with higher us employment impacts rather than basic ingredients with low value added (e,g. electronics, finished industrial and consumer goods, batteries, processed metals and cars etc). i doubt usa can manufacture the same basic ingredients like feed stock itaconic acid at such a low prices (or are even set up to do so economically) so hence why bother block or hinder these supply chains? here in the uk nobody wants 'toilet cleaning' or 'boring manual' jobs, so hence it makes sense to bring external supply-side resources to best meet these basic economic needs whislt we focus on the bigger national value generatation sectors. we also have to wait for the reactive policy reduction s from deflated usa exports by global importers from usa since everyone is now getting rather hacked off with the nationalistic ****** chants of 'usa', 'usa', usa' like at the ryder cup. this includes their best buddies in canada who are majorly anti-america now. bad karma for usa goodwill abroad and any us travellers are going to feel like uk citizens did during brexit - brown steaming soiled goods for at least 1-2 years hence.

Indeed Chilting, couldn't agree more; all three represent poorly thought out, short-term political decisions (for either selfish gratification, political or power play gain). These decisions fail to consider longer term external global/bloc/country reactions + broader implications that ultimately lead to failure, economic waste, lost human life and bad outcomes for the masses. However, like Brexit and Russia-Ukraine, the protagonists may only be held to account well after the lateral damage and destruction of the event/policy! Crazy world we live in, but at least we know ITX is a very solid growth business for 2025+, with major (smart) raw material stockpiles in their US warehouse to largely mitigate this little 'Trump Bump' and I look forward to mgt commentary on its action plan to pass on inflationary 2-3% costs (net price levels) or restructure supply chain sourcing which both seem reasonable to support downstream sticky customers that can't easily alter brands formulation strategies.

If all the tarrif impact is passed on to clients it translates to only say 2%-3% of current ITX sales prices. Let's assume we can pass on 2/3rds, that means a c.1% impact, which doesn't seem too bad, with volumes c.40% higher this year and op. efficiency better covering fixed costs.

Thank you Dougerboy, very insightful reply. Its therefore a bit like a 'group sell ' synergy play across a wider array of sustainable ingredient suppliers;

Everyone benefits via more client brand conversions and cross selling opportunities with higher client bandwidth/access.

Given below messaging from ITX social media today - does anyone here really understand the nature of the interfacing/BD alignment with the "other bio-sustainable ingredients suppliers" - very interested to understand the bandwidth of this green/eco diversified supplier collaboration.

"Through SPARX, we have brought together other advanced specialty ingredient companies with end-product manufacturers and purpose-driven brands to introduce better, safer, and more sustainable products to market.

Have questions about SPARX, and how to create better, safer products in 2025? Get in touch: https://lnkd.in/eWdYpeap

hashtag#Itaconix hashtag#ForNatureWithNature hashtag#PlantBasedCleaning

Have to add here, cast your memory to H2 2024, we were all a bit off sided (some investors had genuine disbelief including me) by the timing of the decision to eject almost 50% of revenue and say 20% gross profit contribution from said infamous non core customer in favor of new ITX strategic profit uplift vision. That decision showed massively sized balls if you reflect back. It also showed great confidence in the hidden pipeline of client reformulation activities that we are only now seeing delivered in 2024 A $6.5m rev and almost same gross profit to 2023A. My point is as just shareholders we are at least 8 months behind the curve of what is going on. Another example is the stock build up which now comes to light (strategic long term decision of ITX given external market factors). But the reality is ITX will more than likely deliver $10 revenue THIS year and probably 40%+ next year given what's going on right now in the company (mosy clearly visable) . I also don't believe the investor relations is dire given a small rapidly evolving company that is focused 140% on its business and customers with a CEO who eventually must want to exit on a very high SP into retirement.

Truncated point 8. The future is green and smells of pine trees, like my loo and so does ITX! :-)

Agree with all prior thoughts here. Sorry about length of text below but need to convey key thoughts together:

1. My 'tuppence' as a long term holder with reasonably large ITX nest egg holding - these are very firmly held as bulk of my own golden tickets for early retirement optionality!

2. Very occasional ITX trader, but sadly missed the major 15p+ spike back in the heady days post-covid, like many since was hold at that time given upside growth/M&A possibility/large embedded intrinsic worth/novel IP etc etc. Have skimmed some profit only when really needed the cash for ad hoc spending needs.

3. Currently more firmly believe than ever in the ITX BIG end game outcome than when first invested - large intrinsic value growth must feed the SP soon-ish but was previously unaware of significant low cost client masking other ITX profit rich segments thro 2023/early 2024 - as we all now know! But all the ITX business dashboard LED performance indicators are fully lit brightly for me now. The business appears to be going like a train and should keep growing compounded from here forwards at strong % growth rates (rev and SP re-alignment in 2025 but not sure exactly when - prob. with few catalysts as SI mentioned).

4. Def. mis-matched asymmetry in SP currently v's intrinsic worth of the company & Broker target guidance and the prior 5.1p professional investor round (pre-consolidation of shares x50). Think issue caused majorly by point 3: the loss of client issue that delayed profit breakeven to end of 2025 (1 year delay) - this has caused a few LTHs to jump off ship prematurely as we near the penalty box for goal hattrick. In my mind this is just caused by personal investment horizons of some LTH investors that are causing some jumping off (this will get replaced by new investors coming in). With all the catalysts in 2025 and nearing the $10m revenue at great speed the SP has to correlate sooner or later with the business activity level and performance outlook.

5. Investors don't really recognise the value of the war chest of "off balance sheet IP intangible value" stored up to explode here, they just look at common or garden revenue and profit breakeven. We are missing a large chunk of value to be delivered that translates into the 325p Broker view on fair value, given other larger market participant chems companies that would love to have ITX patent protection and an ESG friendly growth portfolio.

6. Business much more advanced now than when I invested - very happy with where company is right now and esp. new web site and major marketing efforts taking hold and revenues.

7. Risk in the cashflows of ITX is very diverse given branded FMCG end client risk correlated in the main and difficult to displace. Means 2025F largely already delivered given past investment and late stage brand reformulations that are in the funnel and kicking off launch during H2 25.

8. The future is green and smells of pine trees, like my loo and so does

Yes, a bit weird your experience Smart~I - very odd, never experienced that before. PS. funnily enough I was thinking to nudge you to bring some of your investment cash back into ITX from that other asset in recent days given John's new proactive interview update and the chairman's podcast but you beat me to it! As a LTH wouldn't want you to miss any premature SP uplift given evolving facts and circumstances. Not long to go for more growth/application diversification 'news' is my expectation now they appear to be on a roll with multiple brand reformulations (i.e. given bullish current trading update and messaging, plus unusually relaxed and confident Florida Congress conversation with John, immediately before prospective client meetings)- he is normally v. conservative in his outlook and guidance so subtle change to sentiment positively is my observation but DYOR for medium long term outlook.

Just managed to listen to the podcast - @ DFV - agree totally the Chairman is perfect for ITX and an impressive component of the wider Board enabling future strategic growth/development. Seems very knowledgeable re: chemical ind. applications / regulation / market dynamics.

Thanks Troajan for posting this great Proactive interview link - I must say an improved and v. polished delivery from John and he is looking extremely confident and even mentioned packed 'back to back' client meetings on the back of SPARX. He also was actively showcasing some of the ITX 'advanced product solution' demo samples/kit ready for this major US cleaning event/conference and client conversations. To be honest this clever BD accelerant of SPARX/new web site branding ('for nature' tag) all seems to be going like a train now (pushing external client demand traction). In the background the ESG accountability tailwinds are increasing on all brand managers and almost forcing FMCG companies to do the right thing. For ITX at the moment its open doors, relaxed confident meetings and brand differentiation messaging on point. I know we have all been waiting for years for ITX to power on but eventually now this does really look like a major SP uplift is warranted soon once all investors wake up to the potential here (at the moment under a bushel but it cant stay like this forever).

Appears to be a steady soak up supported at 150p. Wouldn't be surprised if its one of the prior IIs that financed the £10m raise at equivalent 255p (easy value accretion for those guys given ITX's business plan execution progress and operational platform fully in place). Should ITX make another big splash as expected in early April, with more account growth and diverficiation evidence, then we are certainly a great investment proposition at current mkt cap (well below prior professional investor round that has to feed through). DYOR.

AJP, Personally, I believe we won't get a US tax on basic feedstock chems. If there is a levy it will prob. go onto high value finished goods like EVs, Chips, electronics, cars, washing machines, speed boats and expensive processed metals and components etc. The main aim is to protect US jobs in higher value added US manufacturing industries and keep more of this value added in USA as opposed to China. But reverse counter threat from China may mean this is all only negotiating smoke and mirrors by Trump re: fentanyl and other narcotics and illegal trade/IP theft.

Thoughts from other shareholders please. If in the case of a 10% import tariff I am assuming the effect is solely on the raw material costs and hence not massive at product end price level. Most of the value added in the COGS presumably is US manufacturing workforce, plant depreciation, packaging etc etc. so assuming 50% of COGs are input costs ( assumption), that translates only to a 2-3% price incremental uplift so thus doesn't look too adverse, given ITX ability to pass through the minor uplift. Thoughts welcome.