Bio-based polymers specialist Itaconix (ITX) has signed a new joint development agreement with a leading innovator in biodegradable packaging.
The agreement will evaluate the use of Itaconix's BIO*Asterix™ line of functional additives as a key ingredient in a range of biodegradable packaging solutions.
The AIM-listed firm said that the deal will establish the parameters for the desired properties for BIO*Asterix™ additives as well as an operating framework by which the parties will collaborate during the evaluation process.
Shares in Itaconix were trading 9.68% higher at 1.7p during Wednesday trading.
If the development efforts are successful, Itaconix noted, the group will produce and supply one or more BIO*Asterix™ additives for its partner, whose name remains undisclosed, to use in its product range.
"This collaboration is an important step for us to assess the commercial potential of our initial BIO*Asterix™ additives,” said John R. Shaw, Chief Executive of Itaconix.
He added, “Although it is too early to consider the potential impact on revenues, I am optimistic that our bio-based ingredients will find valuable commercial use in biodegradable packaging in the coming years."
A full-year trading update in January showed revenue to be at £1.1 million for the year ended December 31 2019, a 60% increase from the previous period.
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