TIDMITX
RNS Number : 4030D
Itaconix PLC
28 October 2020
28 October 2020
Itaconix plc ("Itaconix" or the "Company")
Half year results for the period ended 30 June 2020
Sustainable Products Drive Major Revenue Growth
Itaconix (LSE: ITX) (OTCQB: ITXXF), a leading innovator in
sustainable specialty polymers, is pleased to announce its
unaudited interim results for the six months ended 30 June 2020
("2020").
A copy of the Interim Report & Accounts is available for
download on Itaconix's website at www.itaconix.com.
Financial Highlights
Financial results for the first half of 2020 show the increasing
uptake by major brands of the Company's sustainable products as key
ingredients in everyday consumer goods and the significant progress
made towards profitability from higher volumes across both home and
personal care applications.
-- First half revenues of $1.1 million were 80% higher than the
first half of 2019 and 59% higher than the second half of 2019.
First half revenues also represent 84% of revenues for the full
year of 2019.
-- Gross profits were $0.4 million, representing an increase of
129% over the first half of 2019 and 47% over the second half of
2019.
-- Gross profit margin was 37% compared to 35% for the full year
of 2019, remaining in line with Company expectations for a
specialty ingredient company.
-- Adjusted EBITDA(1) was a loss of $0.6 million, compared to a
loss of $1.2 million for the same period in 2019 and a loss of $1.2
million for the second half of 2019, reflecting the continued
trajectory towards achieving break-even profitability from
increasing revenues.
-- Gross operating loss of $0.8 million, representing a decrease
of 43% from losses of $1.4 million in both the first and second
half of 2019.
-- Cash and Cash Equivalents as at 30 June 2020 was $0.5
million, compared to $0.8 million as at 31 December 2019.
-- In May 2020, Itaconix Corporation received a US Government
Paycheck Protection Program Loan for $0.2m to support the business
through the Covid-19 pandemic.
-- In July 2020, the Company completed an equity raise with
gross proceeds of $2.2 million to fund operating costs and working
capital needs as revenues advance toward break-even
profitability.
Operational Highlights
The acceleration in revenues is the result of the continued
broadening of the customer base and advancement in customer
projects in the Company's major application areas:
-- Revenues increased across all of the Company's home and personal care polymers.
-- Although demand for household cleaning has surged during the
Covid-19 pandemic, major new revenues came from new customer
products entering the market with new levels of performance, cost
and sustainability.
-- We introduced our new Itaconix(R) TSI(TM) 322 detergent
polymer with use in two North American dishwashing detergent
brands.
-- The Company completed a supply agreement with New Wave Global
Services Inc. ("New Wave"), a leading North American detergent
supplier, on the pricing and supply of up to 1,000,000 lbs. of
Itaconix detergent polymers through 2021. Volumes in the first half
of 2020 exceeded management expectations.
-- Demand for our ZINADOR(TM) odour removal polymer continues to
expand into leading household brands and new regions through our
collaboration with Croda.
-- Revenues for our hairstyling polymer advanced through our collaboration with Nouryon.
-- The Company announced its new BIO*Asterix(TM) line of
functional additives and a joint development agreement for
potential use by a leading innovator in biodegradable
packaging.
Outlook
Itaconix has commercial momentum as current customer products
succeed in the market and new customer products continue to
progress to market in the next year. The expanding foundation of
recurring revenues is creating a strong base for continued revenue
growth toward the Company's goal of sustainable profitability in
the coming years.
John R. Shaw, CEO of Itaconix, stated: "Major advancements in
our customer pipeline allowed us to enter a new phase of commercial
growth in the first half of 2020. Our customers are succeeding with
new products that leverage the unique value and functionality of
our sustainable ingredients. When consumers purchase these new
products for their performance and cost, they also benefit the
environment through a reduction in the depletion of natural
resources, an increase in the use of safer chemicals, and a
reduction in the release of chemicals."
(1) Adjusted EBITDA is defined and reconciled to Operating loss
in Note 4 of the Interim Report.
For further information please contact:
Itaconix plc +1 603 775-4400
John R. Shaw / Laura Denner
N+1 Singer +44 (0) 207 496 3000
Peter Steel / James Moat (Corporate Finance)
Tom Salvesen (Corporate Broking)
About Itaconix
Itaconix develops and produces bio-based functional ingredient
that improve the safety, performance or sustainability of consumer
and industrial products, with technology and market leadership
positions in non-phosphate detergents, odour control, and hair
styling.
www.itaconix.com
Chief Executive's Statement
Itaconix is building a growing, high-gross-margin,
capital-efficient company around the use of our proprietary
sustainable chemistries as high-value ingredients in everyday
consumer products. Our near-term focus is to reach sustainable
revenues and profitability through our current efforts in
non-phosphate detergents, odour control, and hair styling.
Commercial Progress
We entered a new stage of revenue growth in the first half of
2020 as important customer projects began to convert into new order
volumes. Our polymers are delivered based on purchase orders
received from customers to blend and produce home and personal care
products. While we have some agreements with larger customers on
purchasing terms, order volumes are based on the underlying demand
for customers' end-products. As our customers launch and succeed in
the market with new consumer products based on our bio-based
polymers, our monthly revenues are increasing in size and
reliability from a growing base of recurring orders. We expect
these dynamics to continue as additional customer projects in our
pipeline convert into new order volumes.
In January, we announced the introduction of Itaconix(R) TSI(TM)
322 as our latest advance in high-performing detergent polymers.
Itaconix(R) TSI(TM) 322 is the result of our ongoing engagement
with current and potential customers on a new generation of
non-phosphate dishwashing detergents to meet changing consumer
buying behaviour. The key formulation breakthrough with Itaconix(R)
TSI(TM) 322 is the ability to deliver excellent performance while
replacing multiple ingredients to achieve cost savings and more
sustainable and compact detergent products.
In January, we also announced that the US Patent and Trademark
Office issued a new patent to the Company for the composition of
detergents containing Itaconix's novel bio-based polymers. This new
patent provides the Company with an additional layer of
intellectual property protection for the unique value of Itaconix
polymers in non-phosphate dishwasher detergents. In addition, the
new patent extends the Company's proprietary position in key
detergent compositions to 2037.
Also in January, we announced the delivery of the first order of
ZINADOR(TM) 35L to Croda. The Company had previously announced an
expansion of its global supply agreement in odour control products
with Croda to include both ZINADOR(TM) 22L and 35L. The new
ZINADOR(TM) 35L is a more concentrated version of Itaconix's
proprietary polymeric complex that delivers performance and cost
advantages in detergent and industrial applications.
In February, we extended our commercial relationship with New
Wave Global Services Inc. ("New Wave"), a leading North American
detergent supplier, with a licensing agreement for a new
dishwashing detergent formulation and a supply agreement to support
the growth in the Company's polymer volumes used in New Wave
products. The new dishwashing formulation is based on the
competitive advantages available with Itaconix(R) TSI(TM) 322.
Roll-out into New Wave's customer base began in the first half of
2020. The supply agreement provides New Wave with certainty on the
pricing and supply of up to 1,000,000 lbs. of the Company's
detergent polymers as New Wave volumes increase from both existing
and new customers.
In February, we announced our BIO*Asterix(TM) line of functional
additives based on a new range of bio-based chemistries derived
from itaconic acid. The Company developed the new BIO*Asterix(TM)
additives over the past three years for a wide range of potential
uses, ranging from biodegradable plastics to decorative paints. The
Company plans to launch its new product line in stages over the
next few years.
I believe the demonstrated value that our polymers provide as
key ingredients in everyday consumer products underpin our progress
and will generate continued demand growth to create a sizable
specialty ingredients company.
Financial Performance
Our financial results for the first half of 2020 show both the
increasing uptake of our products and the favourable operating
structure we have created to achieve profitability as revenues
grow:
First half revenues of $1.1 million were 80% higher than the
first half of 2019 and 59% higher than the second half of 2019.
First half revenues also represent 84% of revenues for the full
year of 2019.
Gross profits were $0.4 million, representing an increase of
129% over the first half of 2019 and 47% over the second half of
2019.
Gross profit margin was 37%, compared to 29% for the first half
of 2019 and 35% for the full year of 2019.
Adjusted EBITDA (see note 4 to the financial information) was a
loss of $0.6 million, compared to a loss of $1.2 million for the
same period in 2019 and a loss of $1.2 million for the second half
of 2019, reflecting the continued improvement in the Company's
profitability from increasing revenues.
Gross operating profit was a loss of $0.8 million, representing
a decrease of 43% from losses of $1.4 million in both the first and
second half of 2019.
Financial Resources
We ended the first half of 2020 with the announcement of an
equity fundraise to strengthen our balance sheet and support our
continued operations.
In March, we announced our efforts to extend the Company's cash
runway and conserve available working capital after an equity
fundraise was postponed due to uncertainty in the financial markets
caused by the Covd-19 pandemic.
In May, we announced that a combination of revenue growth, cost
reduction efforts, working capital measures, and government funding
programs had extended the Company's cash runway.
In July, we received the required shareholder approvals and
completed the equity fundraise. I greatly appreciate the strong
support we received from both existing and new shareholders for our
progress and development plans.
Covid-19 Pandemic
Major new revenues from a steady stream of new customer products
entering the market have allowed us to continue to operate and grow
as an essential business throughout the Covid-19 pandemic while
addressing several risks.
Most importantly, we are monitoring the safety and health of our
employees. We have aligned our operations with government
recommendations to limit exposure to Covid-19. We have also
eliminated travel while putting new efforts in place to regularly
engage with customers and vendors.
Although demand for household cleaning has surged during the
Covid-19 pandemic, we believe that the majority of our new revenues
come from new customer products that are capturing long-term market
share based on new levels of performance, cost and sustainability.
I expect our current and new customer projects to continue to
advance under the major scenarios for the Covid-19 pandemic.
As detailed above, we successfully managed our operations
through a period of funding constraints and now have the working
capital to meet the needs of our near-term revenue growth.
We continue to assess risks and potential issues in our supply
chain and are taking measures to assure the reliable supply of raw
materials from our vendors and delivery of our products to our
customers.
Outlook
Itaconix is at a new stage of long-term revenue growth and value
creation. The expanding customer base for our current products is
generating recurring revenues and financial performance that places
us on a discernible path to achieve our near-term goal of sustained
revenue growth to reach profitability. We have a pipeline of active
customer projects to reach beyond this goal and look firmly to the
future with continued optimism.
John R. Shaw
Chief Executive Officer
27 October 2020
Condensed consolidated income statement and statement of
comprehensive income
For the six months ended 30 June 2020
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 June to 30 June 31 December
2020 2019 2019
(restated)
Notes $000 $000 $000
Revenue 5 1,086 604 1,288
Cost of sales (683) (428) (838)
----------- ----------- ------------
Gross profit 403 176 450
Other operating income 71 27 62
Administrative expenses (1,287) (1,638) (3,390)
----------- ----------- ------------
Group operating loss (813) (1,435) (2,878)
Finance income - - 1
Exceptional (expense) / income
on movement of contingent consideration 6 - (816) 1,474
Gain on sale of equity interest
in associate - 84 84
Share of profit of associate - (38) (38)
----------- ----------- ------------
Loss before tax (813) (2,205) (1,357)
Taxation (expense) credit (1) (7) (1)
----------- ----------- ------------
Loss for the period / year (814) (2,212) (1,358)
Other comprehensive income,
net of income tax
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translated
foreign operations 110 189 48
----------- ----------- ------------
Total comprehensive loss for
the period / year (704) (2,023) (1,310)
=========== =========== ============
Basic and diluted loss per share 7 (0.3p) (0.7p) (0.5p)
=========== =========== ============
Condensed consolidated statement of financial position
As at 30 June 2020
Unaudited Audited
As at As at
30 June 31 December
2020 2019
Notes $000 $000
Non-current assets
Property, plant and equipment 588 701
Right-of-use asset 822 920
--------- -----------
1,410 1,621
Current assets
Inventories 706 504
Trade and other receivables 290 331
Cash and cash equivalents 3 459 765
--------- -----------
1,455 1,600
--------- -----------
Total assets 2,865 3,221
========= ===========
Financed by
Equity shareholders' funds
Equity share capital 3,677 3,677
Equity share premium 46,135 46,135
Own shares reserve (5) (5)
Merger reserve 31,343 31,343
Share based payment reserve 10,324 10,317
Foreign translation reserve (109) (219)
Retained losses (93,058) (92,245)
--------- -----------
Total deficit (1,693) (997)
Non-current liabilities
Contingent consideration 6 2,274 2,441
Long-term lease liability 576 750
--------- -----------
2,850 3,191
--------- -----------
Current liabilities
Trade and other payables 1,385 707
Short-term lease liability 323 320
--------- -----------
1,708 1,027
--------- -----------
Total liabilities 4,558 4,218
--------- -----------
Total equity and liabilities 2,865 3,221
========= ===========
Interim condensed consolidated statement of cash flows
For the six months ended 30 June 2020
Unaudited Unaudited
6 Months 6 Months
to to
30 June 30 June
2020 2019
(restated)
$000 $000
Cash flows from operating activities
Operating loss (813) (2,205)
Adjustments for:
Finance expense - 2
Depreciation of property, plant and
equipment 108 109
Depreciation of right-of-use asset 99 106
Gain on disposal of equipment (15) (13)
Gain on sale of investment in associate - (84)
Share of loss from associate - 38
Recovery of loan to associate - (29)
Share option charge 8 15
Revaluation of deferred consideration - 816
(Gain) / loss on foreign exchange (57) 189
Taxation (1) (7)
Increase in inventories (202) (161)
Decrease in receivables 40 300
Increase in payables 496 70
--------- ----------
Net cash (outflow) from operating activities (337) (854)
--------- ----------
Cash flows from investing activities
Investment in associate undertaking,
net of transaction costs - 211
Repayment of the loan to associate - 57
Interest paid on loan to associates - 6
Proceeds from sale of property, plant
and equipment 20 40
Purchase of property, plant and equipment - (32)
--------- ----------
Net cash inflow from investing activities 20 282
--------- ----------
Cash flows from financing activities
Proceeds from government secured debt 183 -
Lease payments (183) (108)
Interest expense on lease payments 11 9
--------- ----------
Net cash (outflow) from financing activities 11 (99)
--------- ----------
Net (outflow) in cash and cash equivalents (306) (671)
Cash and cash equivalents at beginning
of the period 765 2,655
--------- ----------
Cash and cash equivalents at end of
the period 459 1,984
========= ==========
Notes to the interim condensed consolidated financial
statements
1. General information
These unaudited interim condensed financial statements of
Itaconix plc for the six months ended 30 June 2020 were approved
for issue in accordance with a resolution of the Board on 27
October 2020. Itaconix plc is a public limited company incorporated
in the United Kingdom whose shares are traded on the AIM Market of
the London Stock Exchange.
This half-yearly financial report is also available on the
Group's website at https://itaconix.com/investor/reports-documents/
.
2. Accounting policies
These interim consolidated financial statements have been
prepared using accounting policies based on International Financial
Reporting Standards (IFRS and IFRIC Interpretations) issued by the
International Accounting Standards Board ("IASB") as adopted for
use in the EU. They do not include all disclosures that would
otherwise be required in a complete set of financial statements and
should be read in conjunction with the 31 December 2019 ('2019')
Annual Report. The financial information for the half years ended
30 June 2020 and 30 June 2019 does not constitute statutory
accounts within the meaning of Section 434 (3) of the Companies Act
2006 and both periods are unaudited.
The annual financial statements of Itaconix Plc ('the Group')
are prepared in accordance with IFRS as adopted by the European
Union. The comparative financial information for the year ended 31
December 2019 included within this report does not constitute the
full statutory Annual Report for that period. The statutory Annual
Report and Financial Statements for 2019 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for the year ended 31
December 2019 was unqualified, did draw attention to a matter by
way of emphasis, being going concern, and did not contain a
statement under 498(2) - (3) of the Companies Act 2006.
The interim condensed consolidated financial statements are
presented in US dollars and all values are rounded to the nearest
thousand ($'000) except when otherwise indicated. The interim
condensed consolidated financial statements are prepared on the
historical cost basis except for contingent consideration which
have been measured at fair value.
The Group has applied the same accounting policies and methods
of computation in its interim consolidated financial statements as
in its 31 December 2019 annual financial statements, except for
those that relate to new standards and interpretations effective
for the first time for periods beginning on (or after) 1 January
2020 and will be adopted in the 2020 financial statements. There
are deemed to be no new and amended standards and/or
interpretations that will apply for the first time in the next
annual financial statements that are expected to have a material
impact on the Group.
Reporting Currency
As noted in the Group's 2019 Annual Report, the Board decided to
change the reporting currency for the year end 31 December 2019 to
US Dollars (USD). The Board therefore believes that USD financial
reporting provides a reliable and more relevant presentation of the
Group's financial position, funding and treasury functions,
financial performance, and its cash flows. Coupled with the
evolution of the business, the Group's shareholder base is now
largely comprised of foreign investors to whom financial reporting
in GBP is of limited relevance. Internally, the Board also bases
its performance evaluation and many investment decisions on USD
financial information. As a result of this updated accounting
policy, the comparative information for the period ended 30 June
2019, has been restated in USD.
Going concern
This Interim Report has been prepared on the assumption that the
business is a going concern. In reaching their assessment, the
Directors have considered a period extending at least 12 months
from the date of approval of this half-yearly financial report.
This assessment has included consideration of the forecast
performance of the business for the foreseeable future and the cash
available to the Group. As such, the Directors have concluded that
there exists a material uncertainty which may cast doubt as to the
Group's ability to continue as a going concern. However, taking
account of the Group's working capital at the date of this report,
the Group's current revenue growth, and current shareholder
approval to raise capital if needed, the Directors believe the
Group will continue as a going concern for the foreseeable future.
The interim financial statements do not include the adjustments
that would be required if the Group were unable to continue as a
going concern.
Risks and uncertainties
The principal risks and uncertainties facing the Group remain
broadly consistent with the Principal Risks and Uncertainties
reported in Itaconix plc's 31 December 2019 Annual Report. Since
the 2019 Annual Report, the Board have been monitoring and
mitigating the effects of the following international events on the
Group's business:
Covid-19
In March 2020, the World Health Organisation declared a global
pandemic due to the spread of Covid-19. The pandemic has restricted
people's movements globally and caused economic disruption and
uncertainty to supply chain and customer stability. The impact of
Covid-19 has been considered as part of the Group's going concern
assessment with a focus on the impact on the Group's revenues,
working capital and non-current assets. Management have considered
the impact a non-adjusting balance sheet event.
Throughout the Covid-19 pandemic, the Group has maintained
operations as an essential business. Extraordinary efforts to
conserve available cash were taken in March 2020 to manage the
Group's working capital. In addition, new funding, via an equity
raise (see Note 8), was sourced in July 2020. While some customer
formulation activities have slowed, the surge in demand for
household detergents has significantly increased order volumes for
the Group's detergent polymers. Effective customer engagement has
continued without travel through adaptation and innovation in
customer communication and engagement.
Brexit
The United Kingdom ('UK') formally left the European Union
('EU') on 30 January 2020. The UK is now in a transition period,
being an intermediary arrangement covering matters like trade and
border arrangements, citizens' rights and jurisdiction on matters
including dispute resolution. The transition period is currently
due to end on 31 December 2020 and negotiations are ongoing to
determine and conclude a formal agreement. The Directors are
closely monitoring the situation and currently deem that the
effects of Brexit will not have a significant impact on the Group's
operations given that the Group operates predominantly outside the
UK.
3. Cash and cash equivalents
Unaudited Audited
As at As at
30 June 31 December
2020 2019
$000 $000
Cash at bank and in hand 459 765
--------- -----------
459 765
========= ===========
4. Reconciliation of Operating Loss to Adjusted EBITDA
The detail below shows the reconciliation of operating loss to
earnings before exceptional expense/(income), gain on sale of
equity interest in associate, share of profit of associate,
interest, taxes, depreciation and amortization (Adjusted
EBITDA).
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 June to 30 June 31 December
2020 2019 2019
(restated)
$000 $000 $000
Loss for the period (814) (2,212) (1,358)
Exceptional expense (income) on
movement of contingent consideration - 816 (1,474)
Gain on sale of equity interest
in associate - (84) (84)
Share of profit of associate - 38 38
Interest - (1) (1)
Taxes 1 7 1
Depreciation 207 215 421
----------- ----------- --------------
Adjusted EBITDA (606) (1,221) (2,457)
=========== =========== ==============
5. Segmental analysis
Revenue by business segment:
The Group has one segment, the Specialty Ingredients segment,
which designs and manufactures proprietary specialty polymers to
meet customers' needs in the personal and consumer health care,
homecare and industrial sectors. This segment makes up the
continuing operations above.
Net assets of the Group are attributable solely to the UK and
US.
Unaudited Unaudited Audited
6 months 6 months Year to 31
to to December
30 June 2020 30 June 2019 2019
$000 $000 $000
(restated)
Revenue
Sale of goods 1,086 604 1,288
------------- ------------- -----------
Segment revenue 1,086 604 1,288
------------- ------------- -----------
Results
Depreciation & amortisation 207 215 421
Segment loss (822) (1,435) (2,878)
------------- ------------- -----------
Operating assets 2,865 5,089 3,221
------------- ------------- -----------
Operating liabilities 4,558 6,930 4,218
------------- ------------- -----------
Other disclosure:
Capital expenditure* Nil 32 39
------------- ------------- -----------
*Capital expenditure consists of additions of property, plant
and equipment, and intangible assets including assets from the
acquisition of subsidiaries.
Geographical information
Revenues Net assets
Unaudited Unaudited Audited Unaudited Audited
Six Months Six Months Year to 31 Six Months Year to 31
to to December to December
30 June 2020 30 June 2019 2019 30 June 2020 2019
(restated)
$000 $000 $000 $000 $000
Europe 93 125 160 (1,836) (2,195)
North America 993 479 1,128 499 1,198
1,086 604 1,288 (1,337) (997)
============= ============= ========== ============= ==========
The revenue information above is based on the location of the
customer.
6. Contingent consideration
$'000
As at 31 December 2019 (Audited) 2,441
Movement in fair value and discounting unwind -
Movement in foreign exchange (167)
-----
As at 30 June 2020 (Unaudited) 2,274
=====
During 2018, in conjunction with the fund raise, a restructuring
of the contingent consideration was executed. The contingent
consideration was restructured into two components:
-- A one-time issue of 15 million new Itaconix plc shares to the Sellers.
-- The continuation of the previous contingent consideration
mechanism (i.e. up to $6m in shares), but with the window of time
for potential achievement expanded to the end of 2023 (from the end
of 2020) and including all the revenues of the Group (which are
primarily from products based on the acquired technology in any
event).
It should also be noted that the second component summarised
above is intended to serve as an incentive programme for the two
members of management (John Shaw and Yvon Durant) who are also
Sellers and are entitled to 63% of the total contingent
consideration. Accordingly, they are not eligible for any cash
bonus or other share incentive programme until the end of 2020.
Simultaneously, the merger agreement with the former shareholders
of Itaconix Corporation and related agreements were amended to
remove various restrictive clauses, including minimum funding
requirements and employment terms.
Based on the share price at the execution of the restructuring
agreement in 2018, the 15m shares had a value of GBP0.3m which was
expensed immediately.
In respect of 2020, the deferred consideration was valued using
a discounted cash flow-based assessment of the expected sales of
the relevant products extracted from the latest Board approved
forecasts, consistent with the approach in prior years. A discount
rate of 11.2% was used. The valuation includes elements which are
unobservable and which have a significant impact on the fair value.
Accordingly, contingent consideration is classified as Level 3 fair
value measurement .
The value of the adjusted contingent component using the latest
Board approved forecasts and assumptions as above is $2.3m (31
December 2019 - $2.4m)
As a result of the changed revenue forecasts, earn out period,
and discount rate from the original value assessments, the
contingent consideration at 31 December 2019 was reduced to $2.4m.
Sensitivity analysis was also performed, summarised as follows:
-- If the sales in the period 2020 to 2022 were reduced by
$1.0m, the fair value would be reduced by approximately $0.4m
-- A 1% increase in the discount rate would reduce the fair value by $55k
Since the forecasts used were a conservative base case, the
computed fair value was deemed appropriate.
7. Weighted-average number of ordinary shares
Unaudited Unaudited
6 Months 6 Months
to to
30 June 30 June
2020 2019
Weighted average number of ordinary shares
for the
purposes of basic and diluted loss per
share ('000) 269,130 269,130
========= =========
8. Events after the reporting period
In July 2020, the Group successfully raised gross proceeds of
$2.2 million (GBP1.8 million) via an oversubscribed placing and
subscription from existing and new investors at the Issue Price of
1.1 pence ($0.01375) per share. A total of 163,318,182 new Ordinary
Shares were placed. The net proceeds of the Placing and
Subscription are expected to provide sufficient funding for the
Company until at least the end of 2021 during which the Company
expects to make significant progress towards its strategic
objective.
Subsequent to the reporting period, the Group surrendered its
leased building in Deeside, United Kingdom on 3 September 2020. The
Group is now released from future rent and building related
expenses.
9. Cautionary statement
This document contains certain forward-looking statements
relating to Itaconix plc ('the Company'). The Company considers any
statements that are not historical facts as "forward-looking
statements". They relate to events and trends that are subject to
risk and uncertainty that may cause actual results and the
financial performance of the Company to differ materially from
those contained in any forward-looking statement. These statements
are made by the Directors in good faith based on information
available to them and such statements should be treated with
caution due to the inherent uncertainties, including both economic
and business risk factors, underlying any such forward-looking
information.
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