Itaconix shares spike 18% following agreement with New Wave Global Services

Itaconix shares spike 18% following agreement with New Wave Global Services

Itaconix PLC (LON:ITX) have seen their shares rally as the firm announced it had signed a new licence and supply agreement with New Wave Global Services.

Itaconix outlined that New Wave Global Services is a North American detergent supplier.

The firm said that the licencing agreement is for a new new dishwashing detergent formulation, based on the new Itaconix TSI322 detergent polymer.

The firm said: “The new dishwashing formulation is based on the new Itaconix® TSI™ 322 detergent polymer which the Company introduced last month.  In December 2018, Itaconix announced a license agreement with New Wave for a new triple-chamber dishwashing detergent pod based on Itaconix® CHT™ 122.  New Wave has gained new accounts and grown its volumes, with the formula now used in private label brands at retailers throughout North America.  The new formulation offers New Wave additional competitive advantages available with Itaconix® TSI™ 322. Roll-out into an expanded customer base for New Wave is expected to commence later in 2020. “

The supply agreement is to support internal growth for the company, and forms part of a growth strategy led by Itaconix.

The deal is the second that has been struck with New Wave, following an agreement in 2018 for a new ripple-chamber dishwashing detergent pod based on Itaconix CHT122.

John R. Shaw, CEO of Itaconix, stated: “We look forward to accelerating our work with New Wave on the opportunities ahead for a new generation of dishwashing detergents. With these agreements and other prospects providing a strong pipeline, I am excited about our growth trajectory and broader recognition our polymers are gaining as key differentiating ingredients in major consumer products.”

Itaconix’s deal with Croda

In January, Itaconix announced that they had delivered the initial order of polymeric zinc complex Zinador 35L to FTSE 100-listed chemicals firm Croda International PLC (LON:CRDA).

The agreement was initially agreed in 2017, for the supply of its polymer-based odour removal additive Zinador 22L to Croda, for home and industrial applications.

In October, both the firms agreed to expand the deal to include Zinador 35L, which is designed for use in detergent and industrial applications.

The update from Itaconix today is a pleasing one, and shareholders should be keen to see the benefits that can be exploited with this new agreement.

Shares in Itaconix trade at 1p (+18.57%). 12/2/20 11:10BST.