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VAST happy to release RNS at 12.00pm so I wouldn’t go by the traditional 7.00am news release times

On the one hand I am surprised at the drift in share price since the £10m funds raise. Considering the very low cash burn rate now that the company is approaching break even, investors should realise that these funds are for more than just the day to day running of operations. They fuel the massive scaling up and remove IMO any investment risk during this scaling up period. Also £10m is a small amount of money compared to the revenue growth this will enable.

On the flip side I am not surprised because of the general negative market reaction to raising funds. Thankfully on this occasion I think the market has got it totally wrong and believe future trading updates will see impressive growth in revenue and share price. We are also moving back to a bull market for tech stocks which will move us from head winds to tail winds.

..we get closer to a RNS on the diamonds. These things take time but patience will win the day. Hoping RNS doesn’t land until after new tax year begins so I can top up my shares ISA

Oh definitely AJP.
Patience very much the key. I think I the current share price is a nonsense when they now have £10.5 cash but the market cap is just £33m. It looks like we will have to wait a little longer than I anticipated for the share price to start moving but once it does I think it will be impressive.

Whilst Itaconix was very successful raising funds through institutions it seems it was less successful with the open offer to qualifying shareholders:

“ the Company proposes to raise up to a further approximately £0.4 million by the issue of up to 7,760,852 New Ordinary Shares pursuant to an Open Offer to Qualifying Shareholders, also at the Issue Price (the Placing, Subscription and Open Offer, together the "Fundraising").”

Only 4,513,420 shares were bought by qualifying shareholders. So circa 58% of shareholders took up the offer. Whilst it is of little consequence to the £10.5m total raised it does suggest that 42% of existing shareholders are not currently impressed with the company’s performance.

If you were one of the investors who had formed out your portion of 10 million bucks to buy Itaconix shares at 5.1p, you would be topping up now the buy price is 5% lower?
Maybe the current share price is a reflection of last weeks market turmoil over interest rates and banks. Either way the current share price looks a very good entry point for investors and I can’t see it staying sub 5 pence for very long.

Cheers Dougerboy there’s no doubt about the long term it’s just the question of when does this take off. I’ve been patient this long I will probably just remain patient. Hopefully now that the fund raise is out the way, the next trading update will knock it out the park in terms of future outlook and plans

Obviously I’m heavily invested in Itaconix and a strong believer in the long term future of the company. However, I find myself asking the question would I be better off investing funds elsewhere over the short to medium term and then reinvesting in Itaconix when we start to get some momentum in the share price?
The massive fund raise gives the company stability and the means to grow the business in line with projections but it seems it has also killed off any short term increase in the share price.
Welcome any thoughts on when fellow investors think some upward momentum is likely?

RR regarding the $10m new business in 2023. That is what it will be worth when you get the full year effect but this year we will only see a part year effect as we on board the new business. We will have to wait until 2024 to see the full $10m.

Trawling through Cannacord’s website I think they will be on board a long time Dougerboy.
Cannacord are big - like really big. In Quarter 3 alone they took $382m revenue. Total client assets in their global wealth management business were $94.4 billion at December 31, 2022.
The two thoughts that immediately came to my mind were:
1. These people are experts at recognising a good investment opportunity. I’m sure they have been given access to a ton more information than the limited info we get in the trading updates / financial results. So they must have liked what they saw.
2. If they didn’t see massive growth ahead at Itaconix they wouldn’t be bothering with a company who pulled in just under $6m of revenue in a while year.

Wow this evening’s RNS’s are most welcome.
Cannacord Genuity Group and Amati Global Investors taking big chunks of Itaconix.
I must admit I had been debating whether to sell some of my shares but I will be holding onto them hard now.

Don’t forget the last RNS was released at 12pm.

I think future plans will include reducing the reliance on China. Geo- politically the US - China relationship is continuing to deteriorate and raw material supply must be secured or there is no business. I favour the bio-refinery JS has mentioned in the past.

Excellent news. Hold on to your hats this morning!

I have submitted the following questions:

Question 1:
In the past John has talked about one day having a bio-refinery. Are there now plans to take this forward or alternatively are there any plans to invest in a new production facility in Europe?

Question 2:
With the recent appointment of Paul Leblanc will there be an indirect or direct working relationship with Bemis?

Well we will get our opportunity to ask next Wednesday!

The fact that the share price has held up following its recent rise suggests there is optimism that a financial package will soon be announced.

We won’t get the detail. They only share what they want to when it suits them. It’s always been opaque what private investors get to see. They are a predominantly private company and we are just a very small slice of their pie.

Could it be that they’ve agreed a price for a new equity raise which is higher than the current share price?

Hopefully financing announcement on the way