I-Tech AB (publ) (ticker: ITECH) has signed a long-term collaboration agreement with Pettit Marine Paint, a supplier of high-performance antifouling paints to the leisure boat markets in North, Central, and South America.

Through the collaboration, both parties will work together to develop a new product line of antifouling paints for leisure boats that make use of I-Tech’s barnacle repelling active agent, Selektope®.

Joint investments will include R&D activities, achieving regulatory approval from the United States (U.S) Environmental Protection Agency (EPA) and other development investments committed by both companies. The collaboration agreement sets out an exclusive right for the use of Selektope® in the marine pleasure craft coatings market within the United States of America for a limited period of time.

Scott Townsend, President of Pettit Marine Paint, states, “At Pettit, we believe that we all play a role in ensuring our treasured waterways are here for future generations. Selektope® is an innovative raw material, driving the industry towards a more sustainable footprint. We are excited to partner with I-Tech as both of our companies invest in innovation and reduced environmental impacts". 

Philip Chaabane, CEO at I-Tech, says: “This collaboration agreement represents a major step for I-Tech in expanding our business into the U.S. and introducing our technology to the largest pleasure craft coatings market in the world with annual sales of around USD $200m. We are proud to be liaising with Pettit Marine Paint, one of the largest companies in the U.S. pleasure craft antifouling market, who have a clear ambition to grow their market share both in the U.S. and in the surrounding territories”. 

For additional information, please contact:
Philip Chaabane, CEO
M: +46 073-910 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 14:00 CET on December 29, 2020.

About I-Tech AB

 I-Tech is a biotechnology company that has developed the product Selektope®, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope® and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.se. For more information visit our website www.i-tech.se.

About Selektope®

Selektope® introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae’s swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com

Summary of the period

” Strong underlying business but temporarily weaker growth due to the impact of the pandemic"

• Net turnover for the period amounted to kSEK 11 956 (12 238), corresponding to a decrease in turnover of -2%. Operating profit/loss amounted to kSEK -723 (-763).

• Net sales for the first nine months of the year amounted to kSEK 41 631 (30 990), corresponding to an increase in sales of 34% (71%). Operating result for the same period amounted to kSEK 1 660 (-6 104).

Important events during the quarter July to September 2020

• I-Tech announced that deliveries for the order to Chugoku Marine Paints communicated by I-Tech in August last year, have been partly delayed due to the current pandemic.

• The ongoing pandemic continues to create uncertainty in the market, which has led to a reduced willingness to invest and increased caution during the quarter.

Important events after the period

• No important events have occurred after the period.

Financial Summary

CEO Comments

Our underlying business continues to develop well, driven primarily by the maintenance market. At the same time, known external factors are having a negative effect on sales growth. After almost seven quarters in a row with steadily higher growth compared with the previous year, we see a slowdown driven primarily by the pandemic and the increased restraint and caution that it has led to at all levels. The increased caution is logical in light of the fact that freight volumes in shipping have decreased by about 4-5% so far this year. For I-Tech, this has meant that some forecasted volumes have been postponed to the first half of 2021, as previously communicated.

Sales for the quarter amounted to SEK 12.0 (12.2) million, a decrease of 2% compared with the corresponding quarter last year. The customer mix, together with the ability to transfer increased cost for logistics, has contributed to an increased gross margin at 51 (48)%.Despite the pandemic and the subsequent slowdown in the world economy, sales increased during the first nine months of the year by 34% to SEK 41.6 (31.0) million. The increase reflects the underlying long-term need for new technology that shipping has in light of upcoming tough emissions targets. The International Maritime Organization (IMO) has set a goal of reducing carbon dioxide emissions by 50 percent by 2050, with the ambition of reducing them by 40 percent by 2030. Effective anti-fouling products will be one of several key components needed to achieve these goals.

Disjointed picture

Although macro trends undoubtedly persist, the industry is in a wait-and-see mode. Most customers and end users report strong sales figures, while at the same time, due to the uncertainty, they are still taking precautionary measures in case the situation worsens. A clear proof of this nervousness is the development in the new  construction market where demand has fallen sharply. However, more and more forecasts indicate that the turnaround is in  sight  for several vessel segments,  and  the  proportion  of stationary vessels, for example, has decreased since the previous quarter.

To sum up the first 9 months of the  year,  I  note that despite the prevailing circumstances we have a nicely growing business, we are managing to generate a strong positive cash flow and we have continued good liquidity. I also see that our product continues to strengthen our customers’ offering and competitiveness thanks to its high performance and its positive contribution to more sustainable shipping. This provides encouragement as we wait for the business conditions to improve as the effects of the pandemic subside

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 08:00 CET on October 23, 2020.

About I-Tech AB

 I-Tech is a biotechnology company that has developed the product Selektope®, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope® and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.se. For more information visit our website www.i-tech.se.

About Selektope®

Selektope® introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae’s swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com

Mercy Ships is a charitable organisation whose volunteers provide medical treatment and undertake urgent operations onboard hospital ships docked at local ports in some of the poorest countries in the world. Since 1978, its medical missions have worked in more than 55 nations, providing services worth over USD $ 1.7 billion and helping more than 2.8 million people. The charity currently operates the converted passenger-ship Africa Mercy, but when their new, purpose-built hospital ship Global Mercy enters into active service in 2021, their capacity to help those in need will more than double.  Following recent healthcare challenges caused by the spread of COVID-19, and its impact on already fragile healthcare systems in Africa, the mission of Mercy Ships to strengthen healthcare systems through the provision of both medical care and healthcare professional training onboard the Global Mercy is even more vital.

The contract to build the Global Mercy was awarded to the Xingang shipyard in Tianjin, China in 2014, with Stena RoRo appointed by Mercy Ships as project manager. When considering the hull coating for the Global Mercy, Stena RoRo selected an antifouling coating containing Selektope® that would protect the hull from hard fouling during extensive static periods. In support of the charity’s vital work, I-Tech AB has donated the required volumes of Selektope® to Mercy Ships.

For any ship spending time at anchor for extended periods, the risk of barnacle colonisation on the hull is very high. The nature of the voluntary aid Mercy Ships provides means that its hospital ships are often stationary in port for up to 10 months. This means that barnacle fouling could be a costly nuisance for Mercy Ships, both due to increased fuel costs when the hospital ship is sailing between ports due to increased frictional resistance on the hull, in addition to costs associated with drydocking the ship to mechanically remove hard fouling, if required.

Selektope® is an active agent ingredient added to marine coatings in nano-molar concentrations (approximately 0.1% per wet weight of paint) that is characterised by its first-of-its-kind bio-repellent mode of action which keeps a ship’s hull free from barnacles, with non-fatal effect on the target organism. When released from surface of the hull, the organic, non-metal compound temporarily activates the swimming behaviour of barnacle larvae, making it impossible for them to settle on the hull and transform into the calcareous adult stage of their lifecycle.

Per Westling, Managing Director of Stena RoRo says: “Stena RoRo is extremely proud to be involved in the building of Global Mercy and to manage the production process. We identified Selektope® as the most suitable, innovative technology to ensure that the hull of this new hospital ship does not suffer from the negative effects of barnacle fouling, even when idling for many months.”

Philip Chaabane, CEO of I-Tech AB says: “The mission of Mercy Ships is vitally important for providing surgical attention for those with least access to medical care in Africa and I-Tech is proud to donate the Selektope® required in the hull coating. Our fast-growing technology, with its heritage in the scientific research domain, is a perfect fit for this ship and its operating pattern. We are proud partners to the Mercy Ships organisation and grateful for the work they do to help humanity.”

Tom Stogner, CEO of Mercy Ships says: “We welcome Stena RoRo’s selection of a Selektope®-containing antifouling coating for the Global Mercy and thank I-Tech for the donation of their technology in support of our mission. The use of the latest technological innovations to safeguard the Global Mercy against biofouling when static is of prodigious importance to us.”

At 174-metres long, the 37,000-ton hospital ship Global Mercy is a one-of-a-kind ship equipped with 12 decks, 6 operating theatres, 102 acute care beds and 90 self-care beds.  The ship can accommodate a crew of up to 641 volunteers, and additional space can host up to 950 people at any one time when the ship is in port.

About I-Tech AB

 I-Tech is a biotechnology company that has developed the product Selektope®, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope® and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.se. For more information visit our website www.i-tech.se.

About Selektope®

Selektope® introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae’s swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com.

About Mercy Ships

Mercy Ships uses hospital ships to deliver free, world-class healthcare services, capacity building, and sustainable development to those with little access in the developing world. Founded in 1978 by Don and Deyon Stephens, Mercy Ships has worked in more than 55 developing countries, providing services valued at more than $1.7 billion and directly benefitting more than 2.8 million people. Our ships are crewed by volunteers from over 50 nations, with an average of over 2000 volunteers each year. Professionals including surgeons, dentists, nurses, healthcare trainers, teachers, cooks, seamen, engineers, and agriculturalists donate their time and skills. With 16 national offices and an Africa Bureau, Mercy Ships seeks to transform individuals and serve nations. For more information click on www.mercyships.org.

About Stena RoRo

Stena RoRo is one of the leading innovators of the roll on/roll off cargo and passenger concepts and offers RoRo and RoPax vessels with belonging administration.  Stena RoRo enables chartering of RoRo vessels to first-class operators all over the world and the clients are found both within and outside Stena. Stena RoRo are highly skilled and experienced in designing and converting vessels, which is combined with a unique knowledge of the market, to create tailor-made solutions for their demanding customers. This is called Stenability! For more information click on www.stenaroro.com/.

The order, previously communicated to be completely delivered during 2020, will now be partly delivered during the first half of 2021 instead.

The reason for the delay is the uncertainty created by the current pandemic which has prompted Chugoku Marine Paints to review its inventories. In order to avoid a too large inventory build-up, the company has informed I-Tech that it partly wants to postpone deliveries of the order until the first half of 2021. The delay will negatively impact I-Tech’s sales for 2020 by approximately MSEK 12.

”The interest in and need for efficient and sustainable anti-fouling remain high but the pandemic,  as we communicated in our report for the second quarter, has created increased uncertainty which has made our end-customers more careful when it comes to investments”, Philip Chaabane, CEO of I-tech said.

For more information, please contact:

Philip Chaabane, CEO
M: +46 073-910 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 15:00 CET on september 07, 2020.

About I-Tech AB

 I-Tech is a biotechnology company that has developed the product Selektope®, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope® and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm with Erik Penser Bank as Certified Adviser, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.se. For more information visit our website www.i-tech.se.

About Selektope®

Selektope® introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae’s swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com