TIDMLME
LIMITLESS EARTH PLC
("Limitless" or the "Company")
UNAUDITED HALF-YEARLY RESULTS FOR
THE SIX MONTHSED 31 JULY 2023
The Company announces its half-yearly result for the six months to 31 July 2023.
CHIEF EXECUTIVE'S STATEMENT
Limitless is an investing company that focuses on making investments in and
assisting companies that show potential to generate returns through capital
appreciation. The directors look to make investments in small companies that
have clear growth strategies and operate in sectors that have long-term growth
prospects and are driven by demographic change. Examples of such sectors
include Cleantech, Life Sciences and Technology. The Company has four
investments, of which further details are included below.
Saxa Gres S.p.A ("Saxa") is a turnaround circular economy company which
specialises in using an innovative production process for porcelain and ceramic
stone tiles using recycled urban waste. It has been very successful in expanding
its operations by competitor acquisition and this has enabled it to satisfy the
increasing demand for its products while attracting valuable funding from
relevant institutional investors.
Saxa's main product is Grestone, which it describes as a `ceramic stone'.
Grestone is a patented conglomerate composed of 70% porcelain stoneware and 30%
waste from industrial incinerators, which can cope with high stress and is
targeted for use in urban surfacing and street design.
Limitless' investment rational was driven by the changing behavioural trends of
consumers and the attitudes of businesses and governments towards products with
greater social impact compared to traditional manufacturing. As Saxa has
established a proven production process using waste incinerator ash amalgamated
into high quality tiles, it has proven its strong ESG credentials. The Company
further hopes that Green Public Procurement, a voluntary European instrument
which provides guidelines and criteria aimed at Europe's public authorities for
sustainable production and consumption, will help drive European demand for
Saxa's products through increased requirements to recognise environmental
credentials early in tender processes. Saxa has seen significant growth in
international demand for its products with the Italian domestic market now only
representing 5-10% of its orders.
Since our initial investment, Saxa has expanded its production capacity and
continued to innovate products.
In January 2021 A2A, a major listed Italian utility firm, announced it had
acquired 27.7% of Saxa. This strategic acquisition is of importance to Saxa and
may, in time, create an exit opportunity for the Company. On making of its
acquisition, A2A states, "Saxa as the first Circular Factory to produce urban
paving and tiles using an innovative `end of waste' process that enables
materials, such as the ash produced by waste-to-energy plants, to be recovered
from the waste cycle and reused to make a new product.
To date, Limitless has made three investments in Saxa and, as a result, holds
EUR 592,000 of 7 per cent. listed loan notes and EUR 75,000 of 10 per cent.
unlisted loan notes with an option to acquire approximately 2.38 per cent. of
the equity share capital of Saxa Gres at an exercise price of EUR 1 per share.
The Company announced, on 21 July 2022, that Saxa Gres had extended the maturity
of the bonds held by the Company from 2026 to 2027 and agreed that it would pay
coupons conditional on certain revenue targets being met and linked to the sale
of non-core assets. As a result of this restructuring, the Company decided to
reduce its holding in the bonds and sold 275 bonds for a total consideration of
EUR 165,000. Following the sale, the Company continues to hold 317 bonds.
In December 2021, the CEO of Saxa Gres stated that whilst the company had
turnover of EUR 50 million in the six-month period to September 2022, the rising
energy costs had impacted its margins and, despite a full order book, production
would be halted from September until the end of 2022. The company previously
reported that in the first half of 2022, energy expenditure was EUR 22 million
in comparison to EUR 6 million for 2021.
In April 2023,Saxa announced that, in light of the need to reduce the
indebtedness and increase the net worth of the Group, Saxa Gres it has started
to work with consultants and representatives for the bondholders to help
identify a solution. Any proposal will be presented to bondholders for their
evaluation and, if thought fit, approval. Once further information is
available, we will update the market and we are optimistic for a positive
outcome but realistic that there is a risk that our investment is further
negatively impacted.
V-Nova Ltd. ("V-Nova") is a London-headquartered technology company providing
next-generation data compression solutions that address the ever-growing media
processing and delivery challenges. V-Nova is an IP Software company which has
developed an innovative video and imaging compression technology with broad
application from developed, data-rich economies to emerging markets. V-Nova
provides solutions spanning the entire media delivery chain, including content
production, contribution, storage and distribution to end-users.
In November 2020, V-Nova announced it had achieved a milestone achievement in
MPEG-5 Part 2 LCEVC (Low Complexity Enhancement Video Coding) being promoted to
MPEG/ISO final draft international standard. V-Nova co-chaired the standard's
development and contributed to the foundational technology upon which it is
built. MPEG-5 Part 2 LCEVC is the first internationally accredited enhancement
standard for any existing and future video compression scheme.
In January 2022, it was announced that V-Nova LCEVC video compression was
(https://www.digitalmediaworld.tv/broadcast/4118-brazilian-sbtvd-forum-selects
-v-nova-lcevc-for-brazil-s-upcoming-tv-3-0)selected by Brazilian SBTVD Forum for
Brazil's Upcoming TV 3.0. The company anticipates that securing this deal would
be very lucrative for it, generating licensing revenues that may be worth tens
of millions in total over a number of years.
Since the start of 2023, a series of public announcements have been made on
LCEVC adoption including companies involved in the video business
In April 2023, Allegro DVT, a leading provider of video compression solutions,
announced the introduction of their first MPEG-5 Low Complexity Enhancement
Video Coding (LCEVC). As a market leader in this field, Guido Meardi, V-Nova's
CEO, commented that Allegro DVT's product launch represented a cornerstone
towards delivering the first LCEVC decoding solutions which are key to
optimising power consumption and supporting higher resolutions.
V-Nova claims its LCEVC technology provides a boost to the compression
efficiency of any existing or future video codec, enabling higher quality
compression at up to 40% lower bitrates while improving encoding efficiency and
reducing processing energy demands by up to 75 per cent. The company's CEO and
co-founder Guido Meardi believes LCEVC will be adopted by the industry by
integration by device or chipset manufacturers, operating systems, browsers, for
in-house development and encoder or player vendors being LCEVC an enhancement,
rather than a full codec and it is deployable immediately on both new and
existing infrastructure, including devices that are already in the hands and in
the households of end-users.
The Company's investment rational for V-Nova was from its desire to invest into
technology related to the provision and consumption of data. This is a field in
which Limitless considers there will be considerable growth for the foreseeable
future as consumption trends seem to increase faster than telecoms companies are
able to build infrastructure driving the need for better data compression and
processing.
Limitless invested £500,000 in V-Nova on 18 December 2015 in a convertible loan
note, which was subsequently converted in April 2017 into Series B1
participating shares at a valuation of V-Nova of c. £80 million.
The Board revalued the investment to match these new terms and, given the codec
standard has been reached, the Directors are optimistic that the company will be
able to swiftly reach its full market potential.
Chronix Biomedical, Inc. ("Chronix"), is a privately-owned biotech company
founded in 1997 which specialises in simple blood tests (liquid biopsies) for
real-time monitoring of the effectiveness of cancer drugs, including
immunotherapies, and rejection of transplanted organs. Chronix's cancer test is
based on patented technology whereby it can identify gains and losses in cell
free DNA that allow them to determine if a cancer therapy is working. Similarly,
its transplant test allows it to determine if an organ that is transplanted is
being accepted or rejected by the recipient. This helps inform the physician so
as to alter the immunosuppressive drug regime given to the patient.
In June 2018, Chronix signed its first commercial agreement with a large EU
-based lab group, which already processes more than 150,000 laboratory samples
daily, providing an exclusive licence for Germany, Austria, Switzerland and
Belgium. The contract is for 15 years and, as previously advised, independent
research. analysts estimated the net present value of the licensing payments to
Chronix over the life of the agreement to be approximately USD 92 million,
subject to a minimum number of tests being performed each year.
After announcing a further licensing agreement with Nasdaq listed Oncocyte
(NSDQ:OCX) for Chronix's CNI monitoring technology (a liquid biopsy test which
detects tumour-derived cell-free DNA in blood samples of patients), in April
2021 Oncocyte announced that it completed the acquisition of Chronix.
Oncocyte stated the acquisition of Chronix will provide it with a distinct
competitive advantage as the first and only company to potentially offer a
continuum of tests, from patient selection to monitoring the effectiveness of
treatment. The simplicity of the blood sample-based test allows physicians to
quickly and easily monitor patients.
The acquisition included the intellectual property and technology for Chronix's
TheraSureT copy number instability (CNI) monitoring test for immune therapy
monitoring. Further Oncocyte has acquired intellectual property relating to
organ transplant technology and associated patent portfolio developed by
Chronix.
Oncocyte has stated its intentions to launch the test for research use only in
domestic immunotherapy clinical trials during the fourth quarter of 2021.
Oncocyte expects the first indication to be for lung cancer before expanding to
other cancer types and the Company awaits further new in this regard.
In May 2022, Oncocyte Completed the Validation of TheraSureT Transplant Monitor
Test allowing for rapid turnaround time to facilitate fast and accurate post
-transplant treatment decisions
From the Chronix acquisition completed in April 2021. This announcement made by
the company marks the successful completion of technology transfer and
Oncocyte's readiness to deploy TheraSureT.
Limitless' investment rational for its investment in Chronix was driven by the
Company's view of significant growth opportunities in the medical screening
sector as developments in drugs and medical understanding require more advanced
and immediate clinical diagnostics tools.
Limitless held 0.72 per cent. of Chronix's issued share capital on a fully
diluted basis. Limitless also previously announced on 20 September 2019 a
further investment of USD 100,000 by way of an unsecured Convertible Promissory
Note ("Note") with an interest rate of six percent per annum. The merger did not
trigger the conversion of the Note, and the Note has been repaid in full
following Completion.
The agreement provides for Oncocyte to pay a revenue share on the net collected
revenues for certain tests and services for specific periods, and to pay a
combination of cash or Oncocyte common stock of up to USD 14 million if certain
milestones are achieved. Net acquisition proceeds and any milestone revenue
receipts are expected to be returned to Chronix's shareholders based on the
order of the investment rounds in which they invested.
The Board of Limitless continues to wait for news from the Oncocyte in respect
of the quantum of revenues and with regard to any new applications of Chronix's
products.
Exogenesis Corporation is a Boston-based nanotech firm which specialises in
modifying and controlling the surface of objects at a nanoscale level, through
accelerated particle beam processing, to avoid needing to apply coatings.
Application of the company's technology can improve the safety and efficacy of
implantable medical devices and improve the performance of optics, glass and a
variety of substrates used in the laser, memory and semiconductor industries.
Exogenesis Corporation is a pre-revenue business.
Exogenesis Corporation received 510(k) clearance for the Exogenesis Hernia Mesh,
First Soft Tissue Repair Device with Nano-Modified Surface in October 2019.
Since this approval, there has been a limited news flow with regards further
development of this device.
In October 2020, Exogenesis Corporation announced that early trials of its
Exogenesis Surgical Mask, a protective nose and mouth covering for healthcare
workers and patients, achieved its primary endpoints of trapping and
deactivating COVID-19 viral particles in simulated real-world exposures. The
Company used its Accelerated Neutral Atom Beam technology to increase the
surface area of fibres allowing for more colloidal copper to be applied to the
mask, increasing the protective barrier. The company hopes to progress to
premarket regulatory filings soon for this product.
In April 2021, nanoMesh LLC, a subsidiary of Exogenesis Corporation, announced
that it had initiated First-In-Man implantation of its proprietary soft tissue
repair device and that it expected additional implantations concurrent with
national distribution to follow.
In August 2021, nanoMeshT LLC, a subsidiary of Exogenesis Corporation, and
Veteran's Healthcare Supply Solutions (VHSS) announced a National Distribution
Agreement for the nanoMeshT Product Line Offering to the Clinical Community.
In January 2022, a report published by Vantage Market Research, citing
Exogenesis nanoMeshT product, projected that the Global Nanotechnology in
Medical Devices Market size is expected to reach USD 1,908 Million by 2028 with
a 12.2% CAGR Growth.
This research pointed out that improved and more cost-effective medical
treatment required by the elderly people around the world along with rising
demand for cheaper and better healthcare is anticipated to propel market demand
in the long run: "In the developed economies elderly populations are putting
tremendous strains on healthcare systems, similarly, in the budding economies,
the growing population along with rising middle-class population are creating
new demand for medical treatment. Nanotechnology is playing a crucial role in
overcoming this global challenge for medical treatment".
The Board of Limitless recognises Exogenesis' technological achievements and,
whilst the business has taken time to bring a product to market, it maintains
optimism for the company's business model and, in turn, this investment.
Limitless invested USD 300,000 in May 2016 in Exogenesis Corporation by way of 8
per cent. convertible senior notes.
In addition to its current portfolio of investments, the Company has reviewed
other new potential investments during the reporting period, and commenced due
diligence check on these investments, some of which are ongoing. The Board
continues to actively source new investments.
The Company raised a total of £155,000 from the issuance of 3,100,000 ordinary
shares during the period for general working capital purposes.
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
For further information, please contact:
Limitless Earth plc Guido +44 7780 700
091
Contesso - CEO
www.limitlessearthplc.com
Cairn Financial Advisers LLP Nominated +44 20 7213
0880
Adviser Jo
www.cairnfin.com
Turner/Sandy Jamieson
Peterhouse Capital Limited +44 20 7469
0930
Broker
www.peterhousecap.com
Charles Goodfellow
UNAUDITED INCOME
STATEMENT AND
STATEMENT OF
COMPREHENSIVE
INCOME
6 MONTHSED 31
JULY 2023
Notes Unaudited Unaudited Audited
31/07/2023 31/07/2022 31/01/2023
Continuing £ £ £
operations
Investment Income - - -
Total Income - -
Administration (87,906) (128,679) (475,430)
expenses
Foreign currency (22,431) 66,738 -
exchange gain/ loss
Operating loss and (110,337) (61,941) (475,430)
loss before
taxation
Taxation - - -
Loss for the period (110,337) (61,941) (475,430)
Total Comprehensive (110,337) (61,941) (475,430)
loss for the period
Earnings per share:
Basic and diluted 3 (0.0017) (0.001) (0.0073)
loss per share
There are no items of other comprehensive income.
UNAUDITED STATEMENT
OF FINANCIAL
POSITION
AS AT 31 JULY 2023
Unaudited Unaudited Audited
31/07/2023 31/07/2022 31/01/2023
£ £ £
Current assets
Investments held for 1,128,343 1,452,390 1,150,774
trading
Trade and Other 5,500 18,461 16,250
receivables
Cash 147,931 126,386 83,894
1,281,774 1,597,237 1,250,918
Total Assets 1,281,774 1,597,237 1,250,918
Current Liabilities
Trade and other (148,576) (91,814) (159,284)
payables
Net Assets 1,133,198 1,505,423 1,091,634
Equity
Issued Share Capital 685,000 654,000 654,000
Share Premium 2,471,530 2,350,630 2,350,630
Retained Earnings (2,023,332) (1,499,207) (1,912,996)
Total Equity 1,133,198 1,505,423 1,091,634
UNAUDITED CASH FLOW STATEMENT FOR
THE
6 MONTHSED 31 JULY 2023
Unaudited Unaudited Audited
31/07/2023 31/07/2022 31/01/2023
2023 2022 2023
£ £ £
Cash flows from operating
activities
(Loss) for the year before tax (110,337) (61,941) (475,730)
Foreign Currency exchange gain/ 22,432 (66,738) 77,406
loss
Decrease/ (increase) in receivables 10,750 (2,731) 32,940
(Decrease)/ increase in payables (10,708) 21,413 (90,621)
Other items (7,030)
Net cash outflow from operating (87,863) (109,997) (463,035)
activities
Cash flows from investing
activities
Sale or (Purchase) of investments - 140,646 140,646
Fair value revaluation of - - 310,546
Investment
Net cash outflow from investing - 140,646 451,192
activities
Cashflows from financing activities 155,000 - -
Gross proceeds from issue of shares
Net cashflows from financing (3,100) - -
activities
Net cashflows from financing 151,900 - -
activities
Net decrease in cash and cash 64,037 30,649 (11,843)
equivalents during the year
Cash at the beginning of year 83,894 95,737 95,737
Cash and cash equivalents at the 147,931 126,386 83,894
end of the year
Unaudited Statement of Changes
in Shareholders' Equity
for the period ended 31 July
2023
Share Share Retained Total
capital premium earnings
£ £ £ £
Audited Changes in Equity for 654,000 2,350,630 (1,437,266) 1,567,364
the period ended 31 January
2022
Comprehensive loss for the (475,730) (475,730)
period
Audited Changes in Equity for 654,000 2,350,630 (1,912,996) 1,091,634
the period ended 31 January
2023
Comprehensive loss for the (110,337) (61,941)
period
Share Issues 31,000 124,000 155,000
Share issue cost (3,100) (3,100)
Transactions with owners 31,000 120,900 151,900
recognised directly in equity
Unaudited Changes in Equity for 685,000 2,471,530 (2,023,332) 1,133,198
the period ended 31 July 2023
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTHS ENDED 31 JULY 2022
1. General Information
Limitless Earth plc is a company incorporated and domiciled in England and
Wales. The Company's ordinary shares are traded on the AIM market of the London
Stock Exchange. The address of the registered office is Suite 2, Northside
House, Mount Pleasant, Barnet, Hertfordshire, England, EN4 9EB
The principal activity of the Company is that of an investing company pursuing a
strategy that focuses on making investments in and assisting companies which
exhibit the potential to generate returns of many multiples through capital
appreciation. Typically, 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.
2. Accounting policies
The principal accounting policies have all been applied consistently throughout
the period covered and have not changed since being reported on in the financial
statements for the year ended 31 January 2023.
Basis of preparation
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on a
going concern basis in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRS) as adopted by the European
Union.
The financial statements have been prepared under the historical cost
convention.
The interim financial information for the six months ended 31 July 2023 has not
been reviewed or audited. The interim financial report has been approved by the
Board on 30th October 2023.
3. Loss per share
The basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period. Diluted earnings per share is computed using the
same weighted average number of shares during the period adjusted for the
dilutive effect of share warrants and convertible loans outstanding during the
period.
Unaudited Unaudited Audited
31/07/2023 31/07/2022 31/01/2023
Loss from continuing operations (110,337) (61,941) (475.730)
attributable to equity holders of the
company
Weighted average number of ordinary 65,433,973 65,400,000 65,400,000
shares in issue
Pence Pence Pence
Basic and fully diluted loss per share (0.0017) (0.001) (0.0073)
from continuing operations (Pence)
4. Copies of the half-yearly report
Copies of the interim results are available at the Group's website at:
www.limitlessearthplc.com.
any revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.
5. Subsequent events after the reporting period
None
Forward Looking Statements
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These statements are not a
guarantee of future performance and are subject to known and unknown risks,
uncertainties, and other factors, some of which are beyond the Company's
control, are difficult to predict, and could cause actual results to differ
materially from those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security holders not to
place undue reliance on these forward-looking statements, which reflect the view
of the Company only as of the date of this announcement. The forward-looking
statements made in this announcement relate only to events as of the date on
which the statements are made. The Company will not undertake any obligation to
release publicly
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/limitless-earth-plc/r/half-year-report,c3865686
END
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October 30, 2023 09:00 ET (13:00 GMT)
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