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Regulatory Filings • May 9, 2018

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Limitless Earth Plc - Update on Investment in Saxa Gres S.p.A

PR Newswire

London, May 8

9 May 2018

LIMITLESS EARTH PLC

("Limitless" or the "Company")

Update on Investment in Saxa Gres S.p.A

Limitless, an AIM quoted investing company, is pleased to provide an update on Saxa Gres S.p.A. ("Saxa Gres"), a private Italian company focused on recycling industrial waste into the production of stoneware tiles and paving stones, in which it has an investment.

On 28 February 2018, Saxa Gres signed an agreement with the Ministry for Economic Development to acquire a factory from Ideal Standard in Roccasecca, Frosinone, Italy.  Ideal Standard had previously announced that it was going to close the factory with the loss of approximately 280 jobs.

The terms of the transaction by Saxa Gres, which was supported by local and regional goverment and trade union bodies,  included financial support of approximately EUR€17 million public finance package and support from Ideal Standard by way of assets including land, plant and equipment and EUR€10 million for restructuring the factory. Accordingly, it is estaimated that Saxa Gres will only be required to invest approximately EUR€9 million to complete the acquisition and provide working capital for the Ideal Standard factory.  Such funding is likely to be by way of issuance of additional Saxa Gres bonds and Limitless will be given the eligable, but not required, to participate in any such fundraise.

Limitless has previously made three investments in Saxa Gres in December 2015, March 2017 and November 2017 by way of the purchase of secured, 10 per cent. loan notes (“Notes”) with accompanying options. Following these investments, Limitless holds EUR€667,000 of Notes and options to acquire approximately 2.5 per cent. of the equity share capital of Saxa Gres at an exercise price of EUR €1 per share.

As part of Saxa Gres’ acquisition discussions, Limitless, alongside fellow investors Halcyon and Bluebay, has agreed to a minor reduction in its equity shareholding from 2.5 per cent. to 2.38 per cent. on account of the significant value proposition to Saxa Gres of the acquisition and the potential for an increase in the valuation of the enlarged Saxa Gres group. 

In light of the above, the Board of Limitless considers it is an appropriate time to sell down part of its current holding of Notes amounting to EUR€167,000, which it expects to complete shortly, leaving a holding of EUR€500,000 of Notes. The proceeds of the sale will be used by Limitless as investment capital which may include reinvestment in future Saxa Gres fundraisings.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Limitless Earth plc

+44 (0) 7780 700 091

Guido Contesso

www.limitlessearthplc.com     

Cairn Financial Advisers LLP

+44 (0) 20 7213 0880

Nominated Adviser

www.cairnfin.com

Jo Turner/Tony Rawlinson                                         

Peterhouse Corporate Finance Limited

+44 (0) 20 7469 0930

Broker

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