REG-Limitless Earth Plc: Investment in Industrial Material Recycling <Origin Href="QuoteRef">LMEL.L</Origin>

Limitless EarthAnnouncement

23/12/2015 14:10

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 €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  €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                                                           
+44 (7780) 700 091    
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                             +44 (20) 7469
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



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