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Thanks AJP these all look like new posts as opposed to replacement posts which is a great indication of company growth.

Particularly pleased to see 2 marketing posts in recognition that the company needs to do more to spread the word about its innovative green ingredients.

Recent pull back in share price looks like an opportunity to add more.

Lovely to see a day of solid green buys yesterday. As predicted 2 days ago, institutional investors knew the bottom was in at 142p and I believe we will now see a steady rise up to £2. Any big announcements in the coming weeks or months will take us to £2.50 or higher. The tide has changed!

Good to hear Ed Milliband refer to Hydrogen at the launch of Labour’s GB Energy announcement. The Secretary of State for Energy Security and Net Zero spoke before the Primer Minister.

5 years of a pro-renewable energy government will do wonders for ITM and the government made it clear they would be supporting the private sector and not taking it over. They couldn’t afford the later!

These ingredient information pages are really interesting background information on just how good their formulations are. Below is today’s post:

Are you looking to develop or enhance your detergent products to meet the growing demand for eco-friendly options?

Itaconix Corporation has developed Itaconix DSP 2K, a 100% plant-based ingredient that has elevated capabilities in stain removal, anti-encrustation, and preventing redeposition in fabric detergents!

Interested in integrating Itaconix DSP 2K into your products? Click here: https://hubs.la/Q02HM-dP0

#greenchemistry #SustainableChemistry #saferchemistry

1. In yesterday’s interview John Shaw stated that Absolute gross profit in H1 2024 was similar to a year earlier due to the improved gross margin. That is despite offloading its low margin customer.

2. Gross profit margin increased to a whopping 38% in H1 2024 compared to 28% a year earlier. That is some progress.

3. Link I posted this morning to hair products shows massive potential application:

VELASOFT® NE 100 TDS - Frizz reduction and curl retention

VELAFRESH™ ZP - Plant-based solution for malodor neutralization

Itaconix® SF 505 TDS- Natural conditioning, better foam texture & stability, and enhanced viscosity

Any of these 3 applications could land a massive multi-million annual $ customer(s)and I anticipate such news in H2.

4. Yesterday’s update on superabsorbents was very welcome news and makes me 100% certain Itaconix read this share chat as a number of us were disappointed not to get an update in the recent trading update. Once the company finalises its product in H2 it can hit 2025 with a massive marketing campaign. Again one or more large customers in this yield could be multi-million annual dollar business.

5. The leather application came out of the blue earlier this year, and just goes to show how diversified this company is becoming. I must confess I still don’t realise the full potential of the leather sector but I imagine it’s big as John is very excited about this.

6. Diversification into Mineral products. Another application we have limited knowledge about but another area John has mentioned a few times this year.

7. All this is on top of its bread and butter dishwasher business which we learnt yesterday has diversified into a gel delivery option with the landing of a major southern European customer.

8. When you add all the above developments together there is a very credible path to becoming a $100m revenue company in the next 5 years.

9. The recent off book trades show institutional investor appetite for Itaconix and they want to get in at a cheap a price as possible. They must see the current share price as the bottom. Golden rule “follow the money”.

Posted on LinkedIn on 23/7/24…

Do you want to reformulate or develop hair care products that protect?

Itaconix Corporation ingredients contribute to creating hair care solutions that are affordable and shield against cuticle damage, leaving hair sleek and easy to comb!

Interested in working with Itaconix formulas and ingredients to enhance your hair care products? Click here https://hubs.la/Q02HBYG30

#greenchemistry #SustainableChemistry #biobasedproducts

Whatever they are they don’t seem to be helping the share price. Quite annoying not to understand what they are, really hope someone enlightens us.

It’s been a while since I was last invested in ITM (sold out back in the 300s). With the rotation into small caps and pending falls in interest rates I think now is the ideal time to reinvest in ITM especially with the share price so low. It is a bet on green H2 but if it takes off ITM could easy be a ten bagger or more IMO.

I too was surprised there was nothing said about superabsorbents. Definitely a question for the next meet investor session.

Regarding a possible facility in Europe I am sure John Shaw dismissed this at a previous Q&A session but worth asking again.

I think the monies raised are essentially a bridge to get the company to become net profitable in a realistic timescale. That includes new product development, expansion / upgrading of facilities and revenue growth.

I’ve decided not to reinvest the remaining half of what I sold at the moment as I think there may be some drift in share price until investors see further progress and I can see a lot of sells on the board despite the improvement in gross margin.

I think the market will want to see a strong H2 in revenue so we might have to wait until next January before we see some real upwards movement on the back of a positive H2 update.

I’ve always thought the company would make a good acquisition for a larger company because of its patents and product range. I also think a larger company would have the firepower to drive utilisation much faster. But I don’t think John Shaw is interested in that path, otherwise he wouldn’t have raised all that money and given away another chunk of his company.

Another 6 months of patience required.

Somewhat muted market reaction. I guess the improved gross margin of 38% is offset by concern that the company burned through $2million in H1.

“Net unaudited cash and investments as at 30 June 2024 were $8.0 million ($10.0 million at 31 December 2023).”

The company has explained that some of this is related to generating new revenues with new customers and improvements to its New Hampshire facility. However some of this loss is due to what I explained in previous posts about the impact of lower revenue in the short term whilst still carrying the same overheads.

What stands out to me is that in just 2 months the gross profit margin has increased even further from 35% (as per the May 2024 TU) to 38% today. Also up a whopping 10% on equivalent period last year.

Unaudited total gross profit margin for the first six months exceeded 38%, compared to 28% for the first six months of 2023 and 31% for FY 2023, reflecting the Company's commitment to enhance profitability.

Current buy price is still 149p which makes me think this was brokers moving shares about getting ready for this week’s TU.

Upside vs Downside risk benefit now weighted firmly in favour of Upside. If the RNS is along the lines of what AJP has described then the share price could easily double within a week. We’ve seen that happen earlier this year.

If it’s a disappointing TU as I fear it could be just in terms of H1 revenue then the share price could fall further. However, there are now strong tail winds with interest rates falling and rotation into small caps so the effect would be less profound. It’s also about what the company forecasts moving forward that money markets are more interested in, so even if H1 is disappointing they may not care if H2 is still on track to deliver.

GLA and I will be hoping that AJP is correct and that my pessimism about H1 revenue is wrong.

The Russell 2000 jumped 3.6% on Thursday as investors rotated from mega-cap tech stocks into smaller companies perceived to get a bigger boost from potential Federal Reserve rate cuts.

The index broke out from a symmetrical triangle on Thursday, paving the way for the start of a new trend higher.

Interesting!! Could just be a balancing trade between brokers. Or it be something much more bullish.

Either way I’m glad to have skin in the game. Next week’s RNS will be an opportunity one way or the other. Finger on the trigger on remaining funds.

Are you looking to enhance your home care products with an ingredient that neutralizes volatile malodors and prevents them from being detected by the human nose?

With Itaconix ONZ 400 you can! This plant-based ingredient binds quickly to neutralize odors at the source.

Interested in creating products with Itaconix ONZ 400? Click here: https://hubs.la/Q02FRtX30

#greenchemistry #SustainableChemistry #saferchemistry

2023 H1 TU was released on 12th July 2023, so 2024 H1 could be this coming week. IMO the company needs to get the RNS out asap to end the uncertainty caused by their non-release of revenue information in the last mini TU. I’m looking for the following:

1. What was H1 income?

2. What evidence is there of new customers? Based on recent posts on LinkedIn I think there has been progress in both Europe and USA.

3. Any revision to H2 forecast income?

4. Progress on Super absorbents. The company is now on version 2 and like others I still believe this could become an absolute giant for the company if they crack it.

5. Progress on other applications such as leather.

Very quiet at the moment as everyone waiting on the trading update.

I’ve reinvested some of what I sold in case AJP is correct and they pull a rabbit out the hat. If revenue is better than I expect then that would deliver a large upside on release of results.

If the TU is disappointing and there is a further fall in price I will reinvest the rest of what I sold after the update, as H2 will be better than H1.

So trying to cover both scenarios in my investment strategy.

GLA.

I received an email from Verified Market Research which led me to a report on the Itaconic Acid Market. Report ID: 26175 Published Date: Jun 2024. If you search “Verified Market Research Itaconix”you will find it.

Some key points:

Itaconic Acid Market size was valued at USD 105.04 Million in 2024 and is projected to reach USD 177.79 Million by 2031.

The number 1 key player is Itaconix. In the ACE matrix Itaconix gets “Cutting edge” status on the strength of its Business and Product strategy.

The market for itaconic acid is expected to grow due to factors such as the rising demand for environmentally friendly goods, the increasing use of unsaturated polyester resins made from bio-based sources, rising consumer awareness of the advantages of itaconic acid, and its readily biodegradable nature. Implies an incredible medium to long term investment opportunity.

Question for me is whether to reinvest now or after the trading update. Maybe best that I cover both scenarios. GLA and DYOR.

Hi Thundergod I see this is your “first” ever post here and first post for 2 years on lse, and you comment on an exchange I had with Elsol!

Why don’t you grow a pair and post under your usual name.

PS- of course I am going to respond if people are calling me or spouting false info.

I’m sorry Elsol I know you’d rather I didn’t post here but what you are telling people is factually incorrect.

First the lost customer accounted for 50% of Itaconix’s 2023 revenue. Quoting from the April Canaccord Genuity April 2024 report “We understand this customer accounted for around half 2023 revenue”.

Second, Itaconix is not “only one year off cash flow positive”. Below are the estimated EBITDA figures again taken from the Canaccord Genuity report:

2024: -1.6m US$

2025: -0.6m

2026: +0.5m

Last time I checked we were in June 2024 so I think that’s 2 years away from cashflow positive, unless some other excrement hits the fan.