Member Info for Jarv55

The other angle you have is that many companies are likely to be using polymers of itaconic acid. Many may have even patented polymers of itaconic acid like itx have. Generally the likes of L’Oreal and Unilever will patent the chemical and have application patents on it to stop competitors for using it. E.g Mexoryl used in sunscreens
Now they will most likely have these ingredients toll or 3rd party manufactured. Now why would L’Oréal want an expensive manufacturing route if cheaper routes were available? After all the cost of manufacturing the chemical affects the raw material cost structure and fundamentally the margin or profitability of the final product.
Now some of these ingredients e.g Zinador are used up to 10% in a formulation so the cost of that product becomes a large component of the raw material make up of that end product especially as 60/70%+ will be water.
So I’d imagine that ITX are also targeting anyone with a poly itaconate patent with a view under cda to license their manufacturing ip
So if they don’t sell their end products they sell their manufacturing know how.
A lot of companies like L’Oréal are stubborn on not invented here products so licensing manufacturing ip may be the way in.

Quite possibly another licensing agreement with Unilever now they’ve disclosed itaconic acid as one of their raw materials.
Don’t forget Jim Gordon who is itx director of cleaning and household services spent 10 years at Unilever mostly in the auto dish wash field.
He then went to mcbrides and I fully expect they’re studying itaconic acid as well.
ITX have been very strong using employees experience to tie up license deals.
Croda - Bryan Dobson is ex uniqema/croda
Solvay - kevin Matthews is ex Solvay
Unilever and McBrides have to be a target with Jim’s experience.

All,

Please dont lose sight that the agreement with Akzo Nobel or Nouryon is for 2 application areas:

1. RNS 26/7/2017 Itaconix has finalized the first application agreement for bio-based polymers to result from its collaboration with AkzoNobel's Specialty Chemicals business, announced earlier this year. This application agreement involves AkzoNobel's Performance Additives unit developing applications for Itaconix polymers to be used in the coatings and construction industries.

2. RNS 16/5/2018 Itaconix is pleased to announce that following a successful technical and regulatory evaluation, AkzoNobel's Chelates' business has formally notified Itaconix of its intention to enter into a joint marketing effort related to Itaconix's innovative bio-based chelates for use in the consumer and industrial detergents and cleaners markets.

So we've got Akzo exploring Coatings, Construction, detergents and cleaners.

I'll let you all have a look and see what the market potential is but it's certainly not small and Akzo Nobel turned over $1.4bn in Q3 2018 just in coatings

Nice news out this morning
So ITACONIX® CHT™is now being marketed by Nouryon (Akzo Nobel) and New wave

Nouryon are looking at CHT for consumer and industrial detergents and cleaners markets.

New Wave are licensing a proprietary formula containing CHT for detergent sachets.

New Wave are preferred supplier to major private label companies as per http://sunmar.ca/ their website

Provided that New Wave are successful with the formula - sales will be pretty instantaneous

Remember that the formulation is proprietary and contains patented CHT - once customers start using it other competitors to ITX can't copy.

JF

My thoughts are quite simple

We have 52 patents covering manufacturing to application
We have patented ingredients that are 100% biodegradable
We have patents that have vastly reduced manufacturing costs
We have three agreements with
1. Croda 6bn Mcap
2. Solvay
3. Akzo

Someone else can fill in mcaps but they’re bigger a lot bigger than crodas

Now take some time to research those three companies and ask yourself why would they **** about with someone else’s tech unless it was game changing? They probably have more chemists than itx have total employees! So why?!?!

I stand by 3 points
A. They won’t entertain time in promotion unless it’s defendable
B. They want to make 50% plus margins
C. If looking to acquire ip manufacturing and application is covered

So little old itx with 52 patents that cover manufacturing and satisfy unmet market needs are working with these 3 global giants.

They are all stock market listed
Read their sustainability reports like I posted from croda above.

Ip and tech isn’t an issue crystallising sales is
£30m pipeline and I’m not surprised

They need to crack on and convey more of these oops John snow will drive this

Anyone with gnpd should be able to work out who the us company is using Zinador

I’m not putting price targets but what I can say is the patents alone for Zinador is worth more than our current Mcap given the pipeline

Jf

Hi Jackie

You could say I have a lot of experience in these situations and know more than I should but likely few on here won’t believe me.

I have heard back from one of my contacts today at Zinador is close to being signed up by another multinational

Couple that with the below which is taken from crodas sustainability report

https://www.croda.com/mediaassets/files/corporate/sustainability/sustainability-reports/2017-sustainability-report.pdf

Read the part about acquisitions..

Croda are experts at taking chemistry and applying it to multiple markets

Think deodorising in general not just homecare
There’s plenty of people on the tube that could do with zinador! Lol

Itx need to crystallise sales
Get the revenue flowing
Get the manufacturing cost down
Get nice margins
Then flog the business

Croda make an offer now and it’s notbreflective of what Zinadors market potential is

Croda will acquire whole companies and they’ll also acquire individual components of businesses as long as its complimentary to their identity

Jf

On the croda itx relationship

Bryan Dobson is ex ici and croda
Bryan Dobson and Kevin Matthews we’re both involved at oxonica
Kevin ceo and Bryan a ned
Oxonica has a patented product called optisol that they signed croda up to distribute in 2006
A few years on croda ended up buying the ip from oxonica, manufacturing the product themselves and paying oxonica a license fee
Oxonica had boots as a major customer
Now we have zinador from itx for odour control
Croda are distribution partners
Again the croda/Kevin/Bryan link comes true
Croda have forestall for odour control
But are distributing zinador and promoting at any given opportunity see below from sepawa in October
https://www.linkedin.com/feed/update/urn:li:activity:6458351170862800896
So croda have a massive commitment to sustainability so my guess is that zinador offers them more on the sustainability front than forestall does.
Croda in their annual reports report % growth in new and patented products to highlight to shareholders what percentage of their sales is ‘ring fenced’
So there must be a compelling argument with zinador for
1. Croda to even consider distributing
2. To replace an existing Croda owned new and patented product

Croda are a speciality chemicals company and won’t be trading zinador for 10-15% they’ll be making 50% plus

Now look back at the oxonica Croda deal
When Croda really want something they’ll buy out the tech especially when the products are
1. Patented ideally manufacturing and application
2. Complimentary
3. Satisfy an unmet need
4. Excellent sustainability profile

Finally why I think Croda is such a good fit

Personal care
Croda has a range called mirustyle for styling polymers
Mfp for hold
Cp for curling
Xhp for heat damage from heating tongs and jarvs(lol)

Who else has a patented styling polymer that is 100% sustainable?!?

These polymers are low cost so I’d hope that itx once scaled up should be making 70%+ margins.
The only variable is the market price of itaconic acid.

I’m sure there are other links to crodas other divisions but this is why I have a 7 figure holding and expect either a Croda/oxonica buy out of Zinador or a deal similar to plant impact hire lse:pim

This is just on the croda relationship and we’ve got akzo and solvay who are multiple times bigger than Croda at 6bn Mcap.

Jf

Croda and Bryan Dobson cropping up everywhere not surprised as he’s ex ici and croda

Optisol started out as a principle/distributor with a 3rd party manufacturer and oxonica owning the ip

Optisol ended up with croda owning the ip, manufacturing themselves and paying oxonica a royalty

When croda want something that fits their criteria such as biodegradable, sustainable polymers they’ll just buy the business

Check out plant impact hire lse:pim as an example

few previous posts worth revisiting from Jonnyfro
Research croda and oxonica29 Nov 2018 21:45
Kevin and Bryan have previous with croda
Look at the optisol deal
Optisol is now distributed and ip owned by croda

Look at mirustyle mfp from croda
Look at revcare 100ms from itx

Look at forestall from croda
Look at zinacor from itx which is distributed through croda

Croda are a great partner and they don’t like reselling other peoples tech they want it for themselves

Funny was just reading that interesting article

Out of interest was Woodford diluted down to 19.2% or was there a holdings rns saying he was down to 19.2%?

https://www.***************************/croda-international-plc-innovation-driving-continued-sales-momentum-in-personal-care-and-life-sciences/412760706

Compare that to Etxs holdings rns

Esski the holdings rns says 0 voting rights

Woodford is out out look at the holdings rns

Woodford Investment Management Ltd

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Once we starting getting past the round numbers 2p 2.5p etc buyers will come in never did get the mentality of buying a stock that has already gone up 100% but watch them pile in at 3p crazy

They have 3 major partners worth researching them and what they do and how our products compare to theirs. If you scroll back about 12 months try an find a poster called Jonnyfro he had some good info from what I remember

John Shaw is not easily excited if you look at previous interviews 12 months ago but he seems very upbeat here https://www.youtube.com/watch?v=PlxVxzJ11Sc
The foundations are now in place for going global for growth with a lot of different formulations. Nearly a 600 million pounds market that they can tap into.

https://www.lse.co.uk/SharePrice.asp?shareprice=ITX.GB.PL&share=Itaconix-Plc

Sam it will re-rate once the book builders are out shouldn't be too long. I hear some were scaled back by 60% shows the interest is here. Would not be surprised to see another fund buying here at these suppressed prices. 2019 forecast turn over is £1.5 million that is with out any further products being launched have to remember the scalability here.