REG-Limitless Earth Plc: Further Investment Saxa Gres <Origin Href="QuoteRef">LMEL.L</Origin>

Limitless EarthAnnouncement

16/11/2017 07:05

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                                              +44 7780 700 091 www.limitlessearthplc.com  
                                                                                                                              
 Cairn Financial Advisers LLP Nominated Adviser Jo Turner/Tony Rawlinson          +44 20 7213 0880 www.cairnfin.com           
                                                                                                                              
 Peterhouse Corporate Finance Limited Broker Peter Greensmith/Charles Goodfellow  +44 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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