Investment in Industrial Material Recycling

 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 â‚¬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  â‚¬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                                                            [phone]    
Guido Contesso                                                                     http://www.limitlessearthplc.com/    

Cairn Financial Advisers LLP                                           [phone]             
Nominated Adviser                                                                 http://www.cairnfin.com/                             
Jo Turner/Tony Rawlinson                                       

Peterhouse Corporate Finance Limited                             [phone]             
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