Limitless Earth Plc - Further Investment Saxa Gres

16 November 2017

LIMITLESS EARTH PLC

("Limitless" or the "Company")

Further Investment Saxa Gres S.p.A

Limitless Earth plc (“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, of approximately EUR €75,000.  Saxa Gres is raising funds, via an increase in its share capital, in order to invest in a new production line it requires to meet a significant increase in orders. Limitless is participating alongside two sizable credit funds in order to maintain its interest in Saxa Gres.

Limitless had previously made two investments in Saxa Gres in December 2015 and March 2017 by way of secured, 10 per cent. loan notes (“Notes”) with accompanying options. Following these investments, Limitless holds 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.

Saxa Gres has raised EUR €3,000,000 in this fundraising round and Limitless has subscribed for EUR €75,000, in line with its stake in Saxa Gres of 2.5 per cent. The funds raised by Saxa Gres will be used to meet capital expenditure requirements for a new production line which is considered necessary to fulfil orders received by Saxa Gres at the CERSAIE Fair in Bologna at which it was exhibiting its new products for 2018.

The board of Saxa Gres advises that, in its opinion, it is gradually establishing itself as a leader in the outdoor ceramic tile market in Europe in light of the innovative composition of its tiles which allows it to tender for public authority work under the European Unions’ Green Public Procurement programme.

Investment Terms

Limitless will invest on the same terms as the credit funds. The investment will be made by way of a loan to Manufacturing Renaissance Italian Solutions plc (“MARIS plc”) holder of 61.5 per cent. of Saxa Gres shares, including Limitless’s existing options of 2.5 per cent., and will be secured by the shares of MARIS plc (“the Facility”). Under the terms of the Facility, investors will receive interest of 11 per cent. rising to 20 per cent. over the term of the loan and tag-along rights in the event that sale by MARIS plc of its stake. Further, Limitless has agreed to extend its holding of the Notes until December 2018 which will continue to pay a coupon of 10 per cent.

Saxa Gres S.p.A.

Saxa Gres has concluded the re-start phase and is now manufacturing high quality porcelain stoneware tiles 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 close to starting to use incinerator ashes in the tile composition in line with the it circular economy project. To reduce the ecological footprint of its operations, in December 2016, Saxa Gres filed an application for the construction of an OFMSW bio-digester to generate its own renewable energy resources and reduce production costs.

At the time of Limitless’s initial investment, the directors of Saxa Gres valued the business in excess of €30 million.

Mr Guido Contesso, Director of Limitless, commented: “we are pleased that Saxa Gres is progressing in line with its initial business plan and therefore we have decided to participate to the capital increase alongside other large institutional investors and Italian family offices.”

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

Limitless Earth plc     Guido Contesso	[phone]     www.limitlessearthplc.com
Cairn Financial Advisers LLP Nominated Adviser      Jo Turner/Tony Rawlinson	[phone]             www.cairnfin.com
Peterhouse Corporate Finance Limited Broker Peter Greensmith/Charles Goodfellow	[phone] 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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