Itaconix (ITX) has announced it has continued to trade in line and has a strong order book for its ingredients, which have not been materially impacted by Covid-19.
To support this order book and fund working capital, the Company has commenced a process to raise equity funding. Discussions in the UK and the US are ongoing, but here can obviously be no assurance at this time of additional funding nor any reassurance given on the terms and price of such funding.
The Company has stated it currently has approximately £300,000.00 in cash and is undertaking efforts to extend it’s cash runway during this time of market volatility and uncertainty caused by Covid-19. These efforts include;
- Maintaining production capabilities to assure fulfilment of new purchase orders from customers;
- Reducing short-term operating costs;
- Negotiating new payment terms with key customers and suppliers to reduce working capital needs;
- Assessing the sale of assets; and
- Reviewing the benefits and costs associated with the Company's shares continuing to trade on AIM.
The Board believes that, with these actions and without any further [new] funding, the Company has sufficient working capital to operate to at least the end of May 2020.
Shares in the Company are currently trading down 78% following this update