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