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Limitless Earth Plc - Saxa Bond Restructuring and Partial Sale

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21 July 2022

LIMITLESS EARTH PLC

("Limitless" or the "Company")

Saxa Bond Restructuring and Partial Sale

Limitless Earth plc, an AIM quoted investing company, provides an update on its investment holdings in 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.

The Company has been advised that, as a result of the significant increase in European gas prices which is a principal component of Saxa Gres’ production costs, on 23 June 2022, Saxa Gres proposed amendments to bondholders to restructure the coupon payments and maturity of its Saxa Bonds 7% 2016 (“Bonds”). The proposed amendments were based on a revised business plan prepared by Deloitte for the period 2022 to 2027 and which were passed with the support of the majority of the bondholders. Under the revised terms, Saxa Gres has extended the maturity of the Bonds from 2026 to 2027 and agreed that it will pay coupons conditional on certain revenue targets being met and linked to the sale of non-core assets.

To date, Limitless has made three investments in Saxa Gres and holds listed EUR 592,000 bond notes maturity 2026 and a EUR 75,000 of 10 per cent. loan with an option to acquire approximately 2.38 per cent. of the equity share capital of Saxa Gres at an exercise price of 1 EUR per share.

As a result of this restructuring, the Company has decided to reduce its holding in the Bonds and has sold 275 Bonds for a total consideration of EUR 165,000. Following the sale, the Company continues to hold Bonds with a face value of EUR 317,000. The proceeds of the sale will be used for general working capital purposes.

This announcement contains inside information for the purposes of UK Market Abuse Regulation. The Directors of the Company take responsibility for this announcement.

Limitless Earth plc
Guido Contesso

+44 7780 700 091
www.limitlessearthplc.com

Cairn Financial Advisers LLP
Nominated Adviser
Jo Turner/Sandy Jamieson/Ludovico Lazzaretti

+44 20 7213 0880
www.cairnfin.com

Peterhouse Capital 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.

About Saxa Gres S.p.A

Saxa Gres S.p.A is a circular economy company which specialises in innovative porcelain gres ceramic stone tile production process that uses recycled urban waste ashes in the ceramic mix. It has been successful in expanding its operations by way of acquiring further factories in order to satisfy the increasing demands for its products and to attract interest from strategic and financial investors.

The main product is called Grestone, a patented product that is composed of up to 30% of waste from urban waste incinerators. Such ability to recycle waste ashes makes Saxa Gres business highly rated from a circular economy and ESG criteria point of view. Furthermore, Grestone meets the criteria for CAM, Minimum Environmental Criteria in tenders and Green Public Procurement. Saxa Gres’s product is now sold mainly outside Italy.

Limitless was amongst the first investors, together with certain international asset managers, to invest in Saxa Gres and participate in its turnaround as it implemented a new circular economy model of waste-to-building-material and, in the process, saved hundreds of jobs.

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