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Chemicals

Itaconix battens down the hatches

It will maintain production, but reduce costs, negotiate payment terms and is assessing asset sales as well considering whether to maintain its AIM listing

Itaconix PLC (LON:ITX, OTCQB:ITXXF) said it was making operational efforts to conserve its £300,000 cash reserves in the face of the mounting disruption to global business caused by the Covid-19 outbreak.

It will maintain production, but reduce costs, negotiate payment terms and is assessing asset sales as well considering whether to maintain its AIM listing.

The speciality chemicals group says it has enough funds to operate until at least the end of May.

Itaconix had a strong order book and was, until the coronavirus interruption, looking to raise new funds to invest in growth.

“Due to current market turbulence, discussions in the UK and the US to procure funding continue,” it told investors in a market update.

“There can be no assurance at this time, however, of additional funding nor of the terms and price of such funding.”

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