REG-Limitless Earth Plc: Update on Investment in Saxa Gres S.p.A

Limitless EarthAnnouncement

09/05/2018 07:05

9 May 2018

LIMITLESS EARTH PLC
("Limitless" or the "Company")

Update on Investment in Saxa Gres S.p.A

Limitless, an AIM quoted investing company, is pleased to provide an update on
Saxa Gres S.p.A. ("Saxa Gres"), a private Italian company focused on recycling
industrial waste into the production of stoneware tiles and paving stones, in
which it has an investment.

On 28 February 2018, Saxa Gres signed an agreement with the Ministry for
Economic Development to acquire a factory from Ideal Standard in Roccasecca,
Frosinone, Italy.  Ideal Standard had previously announced that it was going
to close the factory with the loss of approximately 280 jobs.

The terms of the transaction by Saxa Gres, which was supported by local and
regional goverment and trade union bodies,  included financial support of
approximately EUR€17 million public finance package and support from Ideal
Standard by way of assets including land, plant and equipment and EUR€10
million for restructuring the factory. Accordingly, it is estaimated that Saxa
Gres will only be required to invest approximately EUR€9 million to complete
the acquisition and provide working capital for the Ideal Standard factory. 
Such funding is likely to be by way of issuance of additional Saxa Gres bonds
and Limitless will be given the eligable, but not required, to participate in
any such fundraise.

Limitless has previously made three investments in Saxa Gres in December 2015,
March 2017 and November 2017 by way of the purchase of secured, 10 per cent.
loan notes (“Notes”) with accompanying options. Following these
investments, Limitless holds EUR€667,000 of Notes and 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.

As part of Saxa Gres’ acquisition discussions, Limitless, alongside fellow
investors Halcyon and Bluebay, has agreed to a minor reduction in its equity
shareholding from 2.5 per cent. to 2.38 per cent. on account of the
significant value proposition to Saxa Gres of the acquisition and the
potential for an increase in the valuation of the enlarged Saxa Gres group. 

In light of the above, the Board of Limitless considers it is an appropriate
time to sell down part of its current holding of Notes amounting to
EUR€167,000, which it expects to complete shortly, leaving a holding of
EUR€500,000 of Notes. The proceeds of the sale will be used by Limitless as
investment capital which may include reinvestment in future Saxa Gres
fundraisings.

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

For further information, please contact:

Limitless Earth plc
+44 (0) 7780 700 091
Guido Contesso
www.limitlessearthplc.com     

Cairn Financial Advisers LLP
+44 (0) 20 7213 0880
Nominated Adviser
www.cairnfin.com
Jo Turner/Tony Rawlinson                                    
    

Peterhouse Corporate Finance Limited
+44 (0) 20 7469 0930
Broker
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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