Investment in Saxa Gres SPA

Saxa

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Investment details:

21 March 2017

LIMITLESS EARTH PLC
(“Limitless” or the “Company”)
Further Investment Saxa Gres S.p.A

Limitless, an AIM quoted investing company, is pleased to announce that it has made a further investment in Saxa Gres S.p.A. (“Saxa Gres”), a private Italian company focused on waste recycling industrial waste into the production of porcelain stoneware tiles.

In December 2015, Limitless invested EUR €350,000 acquiring 350 SaxaBond notes each of which had a nominal value of EUR €1,000 and a coupon of 10 per cent. (“Notes”) The Notes were accompanied by options to acquire 1.655% of the equity share capital of Saxa Gres, each option having an exercise price of EUR €1.

Limitless has now increased its investment in Saxa Gres by acquiring a further 267 Notes for a value of EUR €267,000 Eur. These Notes are also accompanied by options to acquire shares in Saxa Gres, in this case to acquire another 1.333% of its equity share capital with each option having an exercise price of EUR €1. In total, Limitless now holds options to acquire approximately 2.5% of the equity share capital of Saxa Gres at an exercise price of EUR €1 per share.

Investment Terms
The Notes carry the same terms as the Company’s initial investment with a coupon of 10 per cent. and a maturity period of two years. Terms of the repayment allow for repayment to occur from 6 months from the date of investment and quarterly thereafter.

The options to subscribe for equity at an exercise price of EUR €1 per share. Exercise of the options accompanying the Notes is at the Company’s discretion anytime until 15 December 2018, as specified in the terms and conditions of the options. At the time of the initial investment, the directors of Saxa Gres valued the business in excess of €30 million.

Saxa Gres S.p.A.
Saxa Gres has concluded the re-start up phase and is now manufacturing high quality tiles made of porcelain stoneware at full capacity, with a daily production of 5,600 sqm. of tiles. It is implementing its industrial plan in line with its internal forecast and the company is closer to start using incinerator ashes in the tile composition in line with the circular economy project of a Saxa Gres Eco District. To reduce the ecological footprint of its operations, in December 2016, Saxa Gres filed an application for the construction of an OFMSW bio-digester which will increase the use of energy from renewable resources while reducing production costs. Because of the progress being made by Saxa Gres in developing its production process, Limitless has decided to increase its investment in Saxa Gres by acquiring the additional options to convert into equity share capital along with the Notes which provide a favourable coupon of 10 per cent. per annum.

Guido Contesso, Director of Limitless, commented: “Because we are satisfied that Saxa Gres is progressing in line with the initial business plan, we have decided to increase Limitless’s investment in the secondary market by acquiring additional Notes and, as well as receiving the favorable 10 % coupon, we also received further options to convert in Saxa Gres shares at EUR €1 in a company that is now in full production and hiring status. The investment is in a company that in our opinion has great potential”

For further information, please contact:

Limitless Earth plc
Guido Contesso +44 (0) 7780 700 091
www.limitlessearthplc.com

Cairn Financial Advisers LLP
Nominated Adviser
Jo Turner/Tony Rawlinson +44 (0) 20 7213 0880
www.cairnfin.com

Peterhouse Corporate Finance Limited
Broker
Peter Greensmith/Charles Goodfellow +44 (0) 20 7469 0930
www.pcorpfin.com

About Limitless Earth plc
Limitless Earth plc is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns through capital appreciation. Limitless invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth linked to demographic change. Examples of such sectors include Cleantech, Life Sciences, nanotech, medtech, recycling, and new Internet opportunities

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23 December 2015

LIMITLESS EARTH PLC
(“Limitless” or the “Company”)
Investment in Industrial Material Recycling andWaste to Energy

Limitless, an AIM quoted investing company, is pleased to announce that it has invested €350,000, in secured, two year bonds with detached equity option in Saxa Gres S.p.a. (“Saxa”).

Saxa Gres S.p.a.
Saxa was founded in 2013 as an acquisition vehicle for distressed assets that had been subject to Italian debt reconstruction proceedings. Saxa is a private Italian company focused on waste recycling in the form of both industrial waste recycling to manufacturing and organic waste to electricity production. Saxa is seeking to raise up to €14 million and Limitless’ investment marks the closing of the first round of €10 million. Saxa will use the proceeds of the debt placement to complete the acquisition of the assets which is expected by January 2016.

Saxa has developed a process for making high quality porcelain stoneware tiles for domestic and commercial use by blending the leftover ash from industrial waste incinerators with clay (excavated from the company’s wholly owned quarry) and other natural components. It is estimated that the quarry contains 4 million tonnes of usable clay, which its directors estimate will provide Saxa with 30+ years of material. The quarry provides, together with the factory and other assets, provides the security for the bond. Saxa has further agreed commercial terms for the purchase of its first three years of production.

Complementing its manufacturing business, Saxa also plans to generate electricity via a grid-connected, 3.7 MW power station. The company is in advanced discussions with a major regional multi-utility company to build and operate a bio-digester to produce gas to fuel the power station and heat for the tile plant. The bio-digester will be fuelled with organic municipal waste provided by the same multi-utility company.

Investment Terms
Limitless has invested €350,000 (approximately £260,000) in Saxa. As a first round subscriber, Limitless has also been granted an option to acquire 1.1655 per cent. of the equity in Saxa at nominal value with the intention that, once the bonds have been repaid, Limitless will be able to maintain an interest in Saxa of approximate value to the bond investment. The bond has a coupon of 10 per cent. and a maturity period of two years. Terms of the repayment allow for repayment to occur from 6 months from the date of investment and quarterly thereafter. The option to subscribe for equity at nominal value has a life of approximately three years and vests following publication of Saxa’s 2015 annual accounts. The directors of Saxa value the business in excess of €30 million.

Guido Contesso, Director of Limitless, commented: “We have been considering a number of investment opportunities in the sector of recycling and but Saxa marks the first one in which we have had the confidence to invest. As consumption increases, so does waste production. In the absence of effective solutions to manage waste, the most common alternative is landfill disposal. Saxa’s approach to waste and energy transformation is invaluable with the dual benefit of extracting value from waste and avoiding the blight of contributing to additional landfill sites. The coupon on the investment is attractive particularly given the security, however, the detached option is the real target here as it provide limitless with a capital growth investment at negligible cost. We are as much backing the products as we are the management team which we believe has the ability to deliver on the statements it has made.”

For further information, please contact:

Limitless Earth plc
+44 (7780) 700 091
Guido Contesso
http://www.limitlessearthplc.com/

Cairn Financial Advisers LLP +44 (20) 7148 7900
Nominated Adviser
http://www.cairnfin.com/
Jo Turner/Tony Rawlinson

Peterhouse Corporate Finance Limited +44 (20) 7469 0930
Broker
http://www.pcorpfin.com/
Peter Greensmith/Charles Goodfellow

About Limitless Earth plc
Limitless Earth plc is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns through capital appreciation. Limitless invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth linked to demographic change. Examples of such sectors include Cleantech, Life Sciences, nanotech, medtech, recycling, and new Internet opportunities