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I think we are all frustrated and a little bewildered at the current share price but the fact that all the LTHs are still here talking about the progress being made, speaks volumes IMO. I’m also underwater but am probably going to add more at this price because the pattern is that it goes up to around 5.5p in the run up to the trading update so that’s a neat 20% from here, if you choose to sell a portion of those shares before the actual TU. I will likely sell half of the “additional” shares I buy this month just before the TU as a hedge bet. However I am not selling any of my core holding.

Just a note on gross margins. Itx is still at an early stage in its development so it can’t be compared to Croda and the like. Even the well established Croda took a bit of a hit in their recent TU.

Hi did everyone watch the Proactive interview with John Shaw this week which is on YouTube? I thought it was a very slick performance. The following quote really hit the mark when he described progress and what the recent fund raise means:

“we have all the resources we need to go pursue that $2.3Bn market with large potential, really exiting this phase of development with well validated revenues, well validated technology platform, great revenue horizons ahead of us”.

At this price it’s easy money knowing we have the trading update coming in a month’s time. We know we will get a rise to 5.5p in the run up so that’s potentially 20% if you are into short term trading and want to sell off before the actual TU. Or you can hold for the actual TU and if the numbers are better than expected get an even bigger rise. Worst case it goes back to the level you bought at as we know there’s very strong support at this level and the fund raise was over 5p.

Not that I will be short term trading as my targets are much much higher and I will continue to LTH

That would make the share price around £2.50 which sounds better than 50p for a 10:1 consolidation.

Given the trading update is only about a month away it amazes me that some investors have sold in the past 24 hours. But each to their own. I understand people’s frustration with the share price but after being invested a couple of years I’m not going to sell when the company has just acquired the financial fire power it needs to deliver its ambitious revenue growth which is being driven by demand for its products. Patience will win the day here.

I think we all knew that Octopus Investments and Canaccord were the top 2 institutional investors in Itaconix but what I didn’t know was that Walker Crisps Investment Management Ltd were also well invested in Itaconix. When you look through the list of institutional investors you get an idea of how well regarded Itaconix is.

Yes as these historic results albeit with a lot more detail, I wasn’t expecting much movement today. If there is to be any movement this week, that will come tomorrow afternoon on the back of the Itaconix presentation which will be focused on the future not the past.

2023E £8m

2024E £10.5m

2025E £14.7m

“Valuation. We maintain our existing 12p target price, with plenty of upside to current levels as we see additional customer wins and new applications and formulas continuing to propel customer growth.”

It was the innovation section that most got my attention. In particular:

- Velafresh SAP80 superabsorbent - to be launched

- Velasoft BR300 repair damaged hair - to be launched

- $600m addressable market in composite materials (patent pending)

“We announced that we are extending our technology platform into potential uses in composite materials, and that we had filed a new patent application, which if granted would protect innovative intellectual property for expected applications in this new area. The extension of the Itaconix technology platform is part of our work to engage with potential customers to identify unmet needs that we can address with our plant-based solutions.

We estimate that a $600m per annum addressable market exists for potential Itaconix products based on this new technology; and although the usual steps remain to advance a new product to market, we are very excited that our plant-based solutions have the potential to address major customer needs which are not being fulfilled. The patent filing marked a significant milestone in our efforts to deliver safety and sustainability to new categories of consumer products, and product research based on this patent filing has now entered the next stage of commercial development.”

Totally agree Bod.

It will take time to put the £10m cash injection to full effect. What I’m looking for next week is how are they going to use the money and which of their diverse areas are seeing the most traction.

It’s a no risk update IMO and should be lots of positives to come out of the session with investors.

Hi AJP,

I don’t expect any other news before 5th June but you never know. As a minimum I would anticipate a statement to say how trading is progressing in 2023. Hopefully it will include some numbers but not guaranteed.

I find the “Investor meet Company” sessions much more

Illuminating that the bland RNS releases and they do tend to give us more of the detail behind the RNS. So I’m really looking forward to it.

All the best.

I have submitted a number of questions around:

1. The share consolidation

2. How the £10m funds raised will be used

3. Why have they appointed joint corporate brokers

4. When will break even / move to profitability be achieved by?

Disclosure: I am currently in a very happy mood following massive jumps in the US tech shares I hold. They are shares which I invested in for the same reasons I invested in Itaconix. The bear market for tech shares is finished. I firmly believe that Itaconix is going to make a big jump up on the next trading outlook. Itaconix is totally de-risked with £10m on the books. The days of worrying about funding over. It’s now time for Itaconix to spend the cash driving up revenues and launching the new products we have been talking about for years. I say we will double our share price by the 2023 full year trading update in January / February

If people are expecting a trading update soon they are going to be disappointed. Next update will be for H1 so July onwards

In terms of why?
See the 28th Feb RNS. Cannacord hold 9% of Itaconix shares following the £10m placement.

Yet another example of private investors being given the minimum information necessary to remain LSE compliant. Really infuriates me!

My issue with the share consolidation is that the company put it out there almost a year ago and then did nothing with it. It was supposed to help with US investment but now they’ve got the 10 million I presume it’s no longer required for the company. As a private investor it’s disappointing as I’d hoped it would generate new private investor interest in the states.

I increasingly get the feeling that Itaconix are not bothered about the share price as long as they have liquidity which the 10 million now gives them.

This morning I watched the famous Monty Python dead parrot sketch and for some reason it reminded me of the Itaconix share price.
I must admit it did make me question my steadfast loyalty to Itaconix and whether I have become blinkered.

February placing of £2.4m at 0.55p a share
April placing of £1m at 0.46p a share
What price will the next placing be? 0.37p??
This should have alarm bells ringing for every private investor

Miners are always high risk. Boom or bust

The fact the company thought 0.46p was a good price speaks volumes. If there were good news around the corner the company would have waited for that to land and then raise funds at that higher share price and give away less equity.