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In the presentation earlier this week JS said it would not be cost effective to run a factory in Europe at 10% capacity. Hence they will continue to push more volume through their New Hampshire facility

Hi Elsol, no RNS. Did you receive any reply?

All the articles I’ve read do not mention anything about raw materials being exempt from charges. There are several articles about how US manufacturers can prepare for tariff’s. For example, https://www.rbtcpas.com/thought-leadership-articles/manufacturing/what-do-new-tariffs-mean-for-manufacturers-in-the-u-s/

The article contains several suggestions including “Consider the benefits of pricing increases versus the potential impact on demand”.

We have to hope that all this is simply part of tough negotiations to get concessions out of countries. Commentators are saying the 54% tax on China makes trade unviable for both parties. US has already said that if China does something serious about addressing Fentanyl they will remove the 20% additional tariff, reducing the overall tariff to 34%. Hopefully in a week’s time common sense logic will have prevailed. Whilst we worry about loosing a few thousand pounds in value of shares, spare a thought for the millions of people across the world who will loose their jobs if these tariffs go ahead.

In order to be fair to all investors the company needs to issue an RNS / statement on the question of tariffs so that all investors receive this information at the same time.

The answer to the question on whether the 54% (34% + 20%) tariff does or doesn’t apply to raw materials imported from China will have a material impact on the share price.

I’ve been busy researching this morning, the answer to that question myself, and think I know the answer, but I would rather the company tell us the answer as speculation is not helpful.

It would be greatly appreciated if they could please put an update out today as the share price has already erased the gains from the excellent presentation a few days ago.

Absolutely worth asking AJP.

For me the question is whether the 54% tariff will apply to raw materials from China or is Itaconix exempt from this tariff as it manufactures in the US?

If the company is not exempt, how much of an impact will this have on gross margins or will the company be able to pass all of this on to its customers?

The EU issue is too early to ask about as the EU have not yet announced what tariffs they will hit back with (if any).

Hi Elsol not sure if you’ve already sent the email but the total tariff is 54% not 34%. Unfortunately it was confirmed by the White House that the 34% is stacked on top of the existing 20% China tariff.

A good post Elsol.

Interesting 24 hours ahead in the global markets. Hardly any shares anywhere trading hands today as everyone holds their breath for tonight’s tariff announcements. I think it will be a sh*t show but the markets will soon bounce back. I’m hoping to pick up some bargains on the NASDAQ if there is short term fallout.

I don’t see this affecting Itaconix for the reasons you have already outlined. Itaconix share price this July will be in a much better place and hopefully cheer up the people on ADVFN 😄

Usually the large buys are transfers between trading platforms / brokers and not investors.

Yesterday the transfer price was 123

Today the transfer price was 132

Onwards and upwards

I think the timing of this coincides with the voting ballot I received this morning for the 2025 Annual General Meeting to be held Thursday, May 8, 2025. I voted ‘For’ all the resolutions including the reappointment of the directors mentioned below.

Hi Elsol, I think business in the US will actually pick up pace as anyone in the US making cleaning or hygiene products will be keen to avoid tariffs. Trump’s tariffs could actually be very good for Itaconix who manufacture in the US. Other companies are scrambling to build manufacturing facilities in the US. When the H1 trading update comes out in July and shows approx 4.5m to 5m in revenue the whole narrative will change.

There’s also now a high possibility of additional RNS as they promised to update us more regularly on developments. I’m expecting that we will see news releases on each SPARX collaboration.

With the current global market turmoil now is the time to be adding shares as there are some incredible bargains out there.

Geraldus there are 10 SPARX collaborations confirmed in 2025. This includes the new North American detergent tablet innovation centre with Bonals.

The first major new end product will be on the market in North America early 2026 with additional new major end-products in 2027.

Each product has multiple applications and each application has multiple sales possibilities. This will drive massive future revenue expansion.

In the meantime, they are growing revenue to 9.6m this year with existing products and applications which is impressive growth in its own right.

Sorry you are disappointed about superabsorbents but if it ain’t translating into purchase orders why would the company pursue this particular product when they have so many other products and applications that are translating into purchase orders.

Yes at the start there were a few occasions where the audio wasn’t perfect but I got most of it.

There were some big positives for me today:

- we have been promised more regular RNS.

- SPARX is on track and we can expect to hear more progress during the rest of the year.

- I know some might be disappointed about Superabsorbents but I think John’s answer was excellent. In short, “we are interested in development that translates into purchase orders”. They have plenty of other products to focus on driving income and gross margin and I applaud their stance.

- Early/Mid July for H1 2025 isn’t far away and we know things are on track.

- No plans for European plant at present and 6.7m cash on books so I have no worries about fund raise in next 2 years.

- Really like that they are looking for gross margins over 40% on new business.

- Good answer on share price fluctuations. Thin volume to trade which will benefit us when the share price starts going up which I think is now onwards.

Overall 9/10 on performance. They answered all questions openly and honestly and I like their no nonsense approach that they are hear to make money!

Thanks Elsol I see that TipRanks have Itaconix as a strong buy.

This is probably the best update we have had in history and we still have the presentation and Q&A session to come 😃. The fact that the share price is up when just about every other stock is down today says a lot.

It’s no longer jam tomorrow. The company is achieving its impressive revenue trajectory. We are seeing growth of circa 50% per annum!! The transition to profitability is happening over the coming 12 months and not some distant date in the future. This is the time to buy a stock when it hits that inflexion point.

Hi Elsol, JS said some of the tariffs between Canada and US may actually benefit Itaconix. Do you think he means because it will increase their competitiveness in the US? e.g. there is competition from Canada in the wider laundry market so higher prices on Canadian products will benefit Itaconix in their US domestic market.

Felt very assured by JS saying the tariffs were still within the fluctuation in raw material prices and that the company is well versed in dealing with tariffs historically going back to 2009 anti dumping tariffs on Citrix acid.

Johns only concern re tariffs was whether the EU retaliates as obviously that is a growing market for Itaconix.

But overall JS is telling us they are not concerned and have dealt with much worse in the past. So we can put the tariff concern to bed now 😃

That is excellent news on Tariffs - might actually end up benefitting Itaconix!!

This is the best answer I’ve ever heard John Shaw give. Great stuff.

Some more financial details from the broker report. The last sentence particular made me smile:

2025 revenue forecast unchanged at $9.6m

2026 revenue forecast unchanged at $13.3m

2025 Profit before tax increases by 200k to (0.9m)

2026 Profit before tax increases by 200k to 0m

“we expect the group to be EBITDA positive in 2026 and likely free cash flow positive in 2027, with substantially positive gross cash throughout the forecast period.”

Canaccord Genuity have just published their update on Itaconix titled “Robust outlook for 2025”

“We continue to expect positive EBITDA for 2026 as a whole and potentially close-to-positive as early as 2H2025 given normal seasonal weighting. We remain BUYers with an unchanged target of 325p.”

Hi Elsol, I think your email and all the questions submitted by everyone will help a lot. We have spelt out exactly what we are looking for on Monday afternoon and we are all excited to hear about the massive progress that is undoubtedly being made.

I see very little risk going into tomorrow. The current share price is already in bargain basement territory. We also know the company has ample cash. In the VERY unlikely scenario of negative market news, we know from before that when it dipped any lower than this price there was a prompt market reaction to snap up shares. So in my mind the risk to benefit ratio here is amazing. e.g. worst case share price £1 Vs best case share price this year £3+

Thought it may not feel it at the moment there are plenty of macroeconomic tailwinds coming to send the share price up this year:

• Interest rates are slowly falling

• Tariff deals will be done during April

• The war in Ukraine is coming to an end

In a couple of months or less I expect to see the stock market pivot to risk on and growth stocks like Itaconix will be big winners.

Well I am extremely pleased to have just noticed that Itaconix have employed the services of Rosewood PR. If you look under the enquiries section of the notice for Monday’s event, John West and Llew Angus from Financial PR are listed. This fills me with renewed confidence for Monday’s presentation. I’m ignoring the current share price as just about every stock is getting hammered in the run up to tariff Tuesday on 2nd April.

https://www.rosewoodpr.co.uk/

Global stock markets are being hammered at the moment in advance of 2nd April “Tariff Day”. Look at today’s Nasdaq down over 2.5%. Every single market in the red today.

I think that’s a good thing. You usually get day traders who buy in just before an announced update and then sell out after the RNS. This time we are going into the RNS nice and steady at a low share price so minimum risk and maximum potential upside.

Feeling very excited for Monday’s update and more importantly the answers to our questions in the afternoon.