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.