In conversation with Thomas Warner, John Shaw, the CEO of Itaconix PLC (AIM:ITX, OTCQB:ITXXF) shared his optimistic vision for the company's future as it heads into the new year.
Shaw discussed the various strategic efforts Itaconix is undertaking to bolster its presence, particularly in the US market. He addressed the challenges associated with share consolidations and brokerage protocols, along with the company's response to the fluctuating share price.
Thomas Warner (TW): John, with the ongoing share consolidation and trading efforts in the U.S., can you share your perspective on Itaconix's share price and your recent actions in the stock market?
John Shaw (JS): Absolutely, Thomas. We've been proactive in enhancing our trading ability in the U.S., especially following our share consolidation. This involved working through brokerage protocols to ensure smoother transactions. The recent trades by myself and other insiders were tests to confirm this improved mechanism. Despite our share price currently being lower than during our fundraising, I believe we've significantly advanced the company over the past two years, creating substantial value that's not yet fully reflected in our market valuation.
TW: Given the current valuation, do you think Itaconix might be seen as an attractive acquisition target?
JS: While our valuation might suggest that, my focus isn't on acquisition prospects. We're dedicated to growing our business and technology platform, which has a multi-billion-dollar potential. Our large customer project pipeline, coupled with our ongoing initiatives in the SAP and bio-asterix areas, should unveil the full commercial potential of our technology, making Itaconix even more exciting.
TW: Are there any thoughts on moving Itaconix to another market?
JS: No, I'm quite content with our current market. I appreciate the sophistication of investors who understand the long-term value of ventures like ours. They recognize the potential of our 'pot of gold' – our technology platform – which is similar to the dynamics in the mining sector.
TW: With analysts adjusting revenue expectations for 2024 and 2025, how do you interpret these changes?
JS: I don’t view it as a downgrade. Our business growth and commercial milestones are on track, perhaps even improving. The adjustments are more about the normalization of inflated chemical prices rather than a reflection of our performance. Our focus remains on growing gross profit and moving towards profitability.
TW: As we approach 2024, how do you feel about Itaconix's positioning?
JS: We're in the strongest position we've ever been. With robust revenue growth, a solid customer pipeline, and adequate cash for investment, we're poised for significant growth. We're also excited about new initiatives like digital marketing and focusing on smaller accounts, which should further enhance our profitability and revenue streams.