Limitless Earth Plc Investment in Industrial Material Recycling

 
TIDMLME 
 
23 December 2015 
 
                              LIMITLESS EARTH PLC 
                        ("Limitless" or the "Company") 
 
        Investment in Industrial Material Recycling and Waste to Energy 
 
Limitless, an AIM quoted investing company, is pleased to announce that it has 
invested EUR350,000, 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 EUR14 million and Limitless' investment marks the 
closing of the first round of EUR10 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 EUR350,000 (approximately GBP260,000) 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  EUR30 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 
[phone] 
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                             [phone] 
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 
 
 
 
END 
 

(END) Dow Jones Newswires

December 23, 2015 09:05 ET (14:05 GMT)