News & Events

Mölndal, October 24, 2018 - I-Tech AB (publ) (ticker ITECH) publish the interim report for the third quarter 2018.

Summary of the period

”Sustained high demand along with planned implementation of a new production process”

• Net turnover for the period amounted to 4 993 (5 569) kSEK, which corresponds to a decrease in turnover of -10 (111) %. Operating profit/loss amounted to –4 899 (-1 674) kSEK. 
• Net turnover for the first nine months of the year amounted to 18 077 (10 693) kSEK, which corresponds to an increase in turnover of 69 (14) %. Operating profit/loss amounted to -10 743 (-5 387) kSEK

July to September 2018

•  The first nine months of the year show that the growth trend is in line with expectations for the full year.
•  Third quarter sales were limited partly due to the start of a major production transition to a more integrated, efficient and robust manufacturing process.
•  From an operational perspective, I-Tech has completed the integration of acquired assets from Cambrex and is now managing the entire supply chain itself.
•  The company has initiated a collaboration with a European manufacturer of active subtances as part of a strategy to create a broader supplier base.
•  The company’s previous largest shareholder, Vicore Pharma Holding, resolved at an extraordinary general meeting on 13 August to distribute the majority of its shares in I-Tech to its shareholders. These shares are subject to a lock-up and can not be sold before 28 May 2019. This has resulted in I-Tech gaining more than 1 500 new shareholders.

Important events after the period

•  No important events have taken place after the period.

Financial summary

All amounts in kSEK	2018       Jul-Sep	2017           Jul-Sep	2018         Jan-Sep	2017           Jan-Sep	2017         Jan-Dec
Net sales	4 993	5 569	18 077	10 693	17 849
Operating result	-4 899	-1 674	-10 743	-5 387	-7 448
Net result	-5 108	-1 981	-10 743	-6 250	-8 418
Operating cash flow	-2 068	652	-11 181	-4 012	-6 238
Equity at end of period	105 761	28 633	105 761	28 633	36 955
Cash and cash equivalents at end period	48 102	11 006	48 102	11 006	20 535

CEO comments

The third quarter has been characterized by the continued strong demand for our Selektope® product, whilst a change in production was initiated to achieve the company’s long-term goals. The purpose of the development work is to implement a new, patented (patent pending) and more efficient production process, primarily to enable a lower production cost. Implementation is taking place at the same time as deliveries from the previously announced production order start in the fourth quarter. For the first nine months of the year, development of our business is in line with expectations and with a confirmed growth in relation to the previous year. Net turnover amounted to 5.0 (5.6) million Swedish crowns during the quarter and 18.1 (10.7) million Swedish crowns for the first nine months, which corresponds to a change of -10% and 69% respectively.

There is still a high pressure in the Korean market which is the second largest market in the world for newbuilding of ships. Korea has about 30% of the newbuilding market and focuses on larger and more advanced ship types. In 2018, the shipyard industry witnessed increasing problems with marine growth and it has been difficult to keep the hull clean during construction time (outfitting) before they are delivered. In the light of this, it is gratifying that Selektope and related paint products are increasingly requested in a market that now is showing positive momentum after many years of challenges with declining order books.

During the period, I-Tech has also fully integrated the assets acquired from Cambrex Karlskoga AB from an operational perspective and deliveries from the previously announced production order start in the fourth quarter. This more direct communication channel creates operative and strategic advantages. Through I-Tech’s ownership of processes, methods and expertise, the speed of development work can increase. For example, implementation of a new generation production process started during the second quarter and dialogue with more potential suppliers and sub-contractors has been established. The implementation of a new packaging model is included in a wide range of improvement projects. As such, we look forward to improved leverage when it comes to profitability and delivery capability when the groundwork in the ongoing transformation work have been complete.

We are now starting the fourth quarter with a significant focus on production and deliveries, as well as on sustaining the positive development from the first half of the year.

Philip Chaabane, CEO

For more information, please contact

Philip Chaabane, CEO
M: +46 73 910 37 08
E: philip.chaabane@i-tech.se

This information is information that I-Tech AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 08:30 CET on October 24, 2018 

Documents & Links Interim report Q3 2018
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2018-07-06.  To satisfy increasing customer demand for antifouling coatings including Selektope® in the marine market, Swedish bio-technology innovator I-Tech AB plans to evaluate an advanced European manufacturer of active pharmaceutical ingredients and intermediates as its large-scale production partner in Europe.

Within an agreed timetable, I-Tech and its potential manufacturing partner aim to optimize and adapt I-Tech processes for production of Selektope® at scale at an existing plant. The development program is of strategic importance for I-Tech as it supports the company’s long-term aim to continuously strengthen the supply chain and maximize the delivery capability for Selektope®.

Having recently acquired the IPR and technical expertise to undertake the Selektope® synthesis, and appointed a new supply chain and logistics manager, the new initiative aims to further strengthen the I-Tech supply chain, and improve the competitive edge in its key markets.

Selektope®, chemically known as medetomidine, is an organic, non-metal compound that is very efficient at preventing barnacle fouling when used in traditional marine coating systems. Characterized by high efficacy at extremely low concentrations (0.1% w/w) with ultra-low leaching, the biocide repels barnacle settlement on ships’ hulls by temporarily stimulating the barnacle larvae’s swimming behavior. Tests have shown that antifouling coatings containing Selektope® offer superior hard fouling protection, resulting in lower water resistance and decreased fuel consumption, in addition to reduced maintenance costs.

Philip Chaabane, CEO I-TECH AB, comments: “In recent years, I-Tech has been successful in scaling up the production of its unique technology from quantities measured in kilos to a robust manufacturing platform producing at multiple tons scale. As customer demand continues to increase, it is important for I-Tech to develop redundancy as well as competitive scale in its manufacturing capability. This evaluation program supports our long-term goals for Selektope® to prosper and meet increasing demand in key markets”

Documents & Links Pressrelease_ I-Tech sets its sights on large-scale Selektope production in Europe 180706
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The developer of the barnacle-repelling antifouling ingredient Selektope® have become members of the non-profit organization Clean Shipping Index (CSI).

Through its membership, I-Tech AB will encourage environmentally responsible decisions around antifouling coating procurement to users of CSI’s holistic labeling system which ranks the environmental performance of ships. I-Tech will seek to promote the benefits of choosing less environmentally impactful antifoulings and educate CSI users on the impact of coating types, such as those containing Selektope®, on the ranking of ships under the labeling system.

CSI-ranked vessels are eligible for reduced fairway dues from the Swedish Maritime Administration (SMA) and reduced port fees at the ports of Brofjorden, PetroPort, Gothenburg, Vancouver, Prince Rupert and Gävle. The discount available is dictated by a ship’s CSI ranking. The cleaner the ship, the greater the financial incentive which creates a win-win situation for both the environment and business. For cargo owners and forwarders, the ranking system can also be used to select more sustainable shipping options.

As part of the CSI ranking process, a 25-part questionnaire covering the parameters of SOx, NOx, CO2, chemicals, water & waste and particulate matter is completed for each vessel. Ship owners must declare what type of coating is in situ on their vessel and points are allocated according to the environmental impact, with less environmentally impactful coatings receiving a greater number of points. The number of points received overall from declarations made on the questionnaire determine the vessel ranking and discounts available.

“CSI welcomes I-Tech’s commitment to a clean environment and reduction of the ecological footprint of shipping. We are proud to welcome them onboard as a member,” says Maarten Verdaasdonk, Project Manager of the Clean Shipping Index.

Philip Chaabane, CEO of I-Tech AB says: “I-Tech AB joined the CSI in support of their vision to encourage ‘clean ships sailing in healthy seas’. Our membership of CSI is aligned with our Company’s vision to support the transition to cleaner ships with reduced emissions. We are proud to be part of such an experienced and knowledgeable network in sustainable shipping.”

I-Tech’s unique antifouling technology Selektope® is an organic, non-metal compound that, when added to marine coatings, works to prevent barnacle fouling by temporarily activating the swimming behavior of barnacle cyprid larvae, making it impossible for them to settle on a ship’s hull. Selektope® is effective at extremely low concentrations, reducing the biocidal loading in the coating and resulting in ultra-low leaching into the marine environment. It also offers paint manufacturers the flexibility to boost copper-based paint formulations, either as a means of reducing the amount of copper required or replacing copper completely.

Documents & Links Release
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Nasdaq has approved I-Tech AB (publ) ("I-Tech" or "Company") for listing on Nasdaq First North. The first day of trading in the Company's shares is Monday, May 28, 2018.

I-Tech has recently completed a share issue for listing on Nasdaq First North. The share issue raised SEK 38.5 million before issue costs. Assuming that the overallotment option of 275,000 shares is fully utilized, the Company will receive a total of SEK 44.1 million before issue costs. Following the share issue, I-Tech will have around 670 shareholders.

Nasdaq's review of I-Tech has now been completed and the Company's application for admission to trade on Nasdaq First North is approved. The shares will be traded under the ticker ITECH and ISIN code SE0011167725. The subscription price in the share issue was SEK 20.50 per share.

For further information, refer to the prospectus that has been prepared in connection with the issue and application for listing. The prospectus is available on I-Tech’s website, www.i-tech.se

Advisor

Erik Penser Bank AB is the Company's Certified Adviser and has been financial advisor in connection with the listing and the rights issue. MAQS Advokatbyrå has been the Company's legal adviser in connection with the listing and the rights issue

Documents & Links Approval from Nasdaq First North
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