Itaconix PLC Strong Revenue Momentum and Extended Funding (8934L)
05 Maggio 2020 - 11:21AM
UK Regulatory
TIDMITX
RNS Number : 8934L
Itaconix PLC
05 May 2020
5 May 2020
Itaconix plc ("Itaconix" or the "Company")
Strong Revenue Momentum and Extended Funding
Itaconix (LSE:ITX) (OTCQB:ITXXF) announces that, further to the
update provided on 17 March 2020, the Company has made significant
progress in its operational efforts to extend the Company's cash
runway, with operating expenses reduced and new payments terms with
key customers and suppliers negotiated.
Whilst ensuring that the Company maintains production
capabilities, several actions have also been taken to reduce costs
and maintain liquidity, including:
-- John R. Shaw, CEO, agreeing to a voluntary 65% deferral in
cash compensation until at least the end of August 2020;
-- Other executives agreeing to a voluntary 50% deferral in cash
compensation until at least the end of August 2020;
-- The Non-Executive Directors agreeing to a voluntary 75%
deferral in cash compensation until at least the end of the
September 2020; and
-- The curtailment of all non-essential discretionary spending.
In addition to cost savings, the Company has applied for
COVID-19 US government relief programs available for its US
operations. To date, the Company has received a $10,000 grant from
the US government and continues to seek additional funds from this
source. Cash at 30 April 2020 was $0.3 million.
The Board believes that, with these actions and without any
further funding (including any further funding received from
COVID-19 US Government relief programs being applied for), the
Company now has sufficient working capital to operate until at
least the end of August 2020. The Company is continuing to develop
and evaluate additional equity and debt funding proposals.
Trading Update
The Board also announces that revenues for the first four months
of 2020 were $0.6m, representing an increase of 42% over the same
period in 2019. The strong growth is primarily from the continued
commercial progress and success of the Company's detergent polymers
including:
-- Receipt of first purchase order for Itaconix (R) TSI (TM) 322
to support the launch of a new dishwashing detergent under a major
brand in North America by New Wave. The new detergent product is
expected to be in retail stores across the United States in the
coming weeks.
-- Total volumes under the New Wave supply agreement are ahead of plan.
-- Order volumes increased from existing customers in response
to higher demand for dishwashing detergents related to stay-at-home
orders issued by governments to contain the spread of COVID-19.
The Board expects continued revenue growth for the Company's
detergent polymers.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Ends
For further information please contact:
Itaconix +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 plc (LSE: ITX) is a leading innovator in bio-based
functional ingredients for improving the safety and performance of
homecare, personal care, and industrial products. Its proprietary
polymer technology generates a growing range of new ingredients
with unique functionality that meet consumer demands for value and
sustainability.
www.itaconix.com
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END
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