30 October 2020
LIMITLESS EARTH PLC
("Limitless" or the "Company")
UNAUDITED
HALF-YEARLY RESULTS FOR
THE SIX MONTHS
ENDED 31 JULY 2020
The Company is pleased to announce its half-yearly result for
the six months to 31 July 2020.
CHIEF EXECUTIVE’S
STATEMENT
Limitless is a proactive investing company that focuses on
making investments in and assisting companies that show the
potential to generate returns through capital appreciation.
The directors look to make investments into small companies which
have clear routes to value appreciation, and which operate in
sectors with long term growth prospects that are driven by
demographic change. Examples of such sectors include
Cleantech, Life Sciences and Technology. The Company has four
investments, and reports on them below.
It is the Board’s intention to have its investments revalued in
the next few months.
Saxa Gres S.p.A (“Saxa”) is a turn-around circular
economy company which specialises in an innovative porcelain and
ceramic stone tile production process using recycled urban waste.
It has been extremely successful in expanding its operations by
competitor acquisitions and this has enabled it to satisfy the
increasing demands for its products while attracting valuable
funding from relevant institutional investors.
Saxa’s main product is Grestone, which it describes as a
‘ceramic stone’, 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 established 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. More recently,
Saxa has launched a cobblestone product for pedestrian crossings
whereby the colour is incorporated into the cobblestone such that
it will not discolour and fade with age. The products are
targeted at local authorities and it is expected that, in addition
to product’s environmental credentials, it should provide long term
cost savings through reduced maintenance.
To date, Limitless has made three investments in Saxa and, as a
result, holds EUR 617,000 of 10 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 €1EUR per share.
The Board of LME is pleased with the commercial progress that
Saxa Gres has made and is hopeful of being able to positively
revalue its investment in the near-term as financial information
and performance data becomes available.
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.
V-Nova’s management is targeting the company’s technology at
becoming an integrated world standard, evidence of which is
supported by the Moving Picture Experts Group (MPEG) having
selected V-Nova’s technology to become a new standard
(MPEG5-Part2). This is expected to yield V-Nova a recurring revenue
stream for a long period. In addition, V-Nova recently
announced that the MPEG coding standard, LCEVC standard
specification, is final.
Limitless is hopeful for further news of corporate development
and contracts following what it believes may be milestone events
for V-Nova which should allow V-Nova to expand into further
vertical sales channels.
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.
We have been advised that V-Nova is currently fundraising and,
following the completion of this round, we are hopeful that it will
be possible to positively revalue our investment to match these new
terms.
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 $92
million, subject to a minimum number of tests being
performed each year.
Chronix recently announced a further licensing agreement with a
Nasdaq listed company for its CNI monitoring technology used in
Chronix's liquid biopsy tests which detects tumour-derived
cell-free DNA in blood samples of patients.
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.
To date, Limitless has invested US$600,000 in Chronix, which includes a follow-on
investment of US$100,000, by way of
convertible preference stock and a 6 per cent. convertible loan
note.
The Board of LME values and recognises the considerable
achievements of Chronix’s management and understands that
additional funding and partnership agreements are needed to
continue to develop the company’s operations as it moves from
concept towards commercialisation, to exploit its potential and,
ultimately, drive company valuation. Chronix’s management
team continues to actively raise funds to support its objectives
and to support the company to financial breakeven.
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, albeit news flow since then has been limited as to
further developments.
More recently, 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.
The Board of LME recognises Exogenesis’ technological
achievements and, as it has still to prove its revenue streams,
awaits news of its first commercial deals which are expected to be
linked to selling into its existing vertical sectors.
The Board of Limitless consider that Exogenesis’ last
announcement provides renewed optimism for the company’s business
model and, in turn, this investment.
Limitless invested US$300,000 in
May 2016 in Exogenesis Corporation by
way of 8 per cent. convertible senior notes.
During the reporting period, the Company looked at new potential
investments and opened a series of due diligence on potential new
investments some of which are ongoing. The Board continues to
actively source new investments.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please
contact:
Limitless Earth
plc
www.limitlessearthplc.com
Guido Contesso -
CEO
+44 7780 700
091
Cairn Financial Advisers
LLP
+44 20 7213 0880
Nominated
Adviser
www.cairnfin.com
Jo Turner/Sandy
Jamieson
Peterhouse Corporate Finance
Limited
+44 20 7469
0930
Joint
Broker
www.pcorpfin.com
Peter
Greensmith
UNAUDITED INCOME STATEMENT AND |
|
|
STATEMENT OF COMPREHENSIVE INCOME |
6
MONTHS ENDED 31 JULY 2020 |
|
|
|
|
|
Notes |
Unaudited |
Unaudited |
Audited |
|
|
31/07/2020 |
31/07/2019 |
31/01/2020 |
Continuing operations |
£ |
£ |
£ |
|
|
|
|
|
Investment Income |
|
13,430 |
14,379 |
37,797 |
Total
Income |
|
13,430 |
14,379 |
37,797 |
|
|
|
|
|
Administration expenses |
(80,022) |
(74,511) |
(186,384) |
Foreign currency exchange gain/ loss |
|
46,013 |
|
(29,948) |
Operating loss and loss before taxation |
|
(20,579) |
(60,132) |
(178,535) |
|
|
|
|
|
Taxation |
|
- |
- |
- |
Loss for the period |
(20,579) |
(60,132) |
(178,535) |
|
|
|
|
|
Total Comprehensive loss for the period |
(20,579) |
(60,132) |
(178,535) |
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic
and diluted loss per share |
3 |
(0.0003p) |
(0.09p) |
(0.0027p) |
There are no items of other comprehesive income.
UNAUDITED STATEMENT OF FINANCIAL POSITION |
|
|
|
|
AS AT
31 JULY 2020 |
|
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
31/07/2020 |
31/07/2019 |
31/01/2020 |
|
|
£ |
£ |
£ |
Current assets |
|
|
|
|
Investments held for trading |
|
1,809,398 |
1,711,809 |
1,763,386 |
Trade
and Other receivables |
|
86,238 |
53,123 |
77,158 |
Cash |
|
151,936 |
419,007 |
262,845 |
|
|
2,047,572 |
2,183,939 |
2,103,389 |
|
|
|
|
|
Total
Assets |
|
2,047,572 |
2,183,939 |
2,103,389 |
|
|
|
|
|
Current Liabilities |
|
|
|
|
Trade
and other payables |
|
(38,215) |
(35,600) |
(73,453) |
|
|
|
|
|
Net
Assets |
|
2,009,357 |
2,148,339 |
2,029,936 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
Issued
Share Capital |
|
654,000 |
654,000 |
654,000 |
Share
Premium |
|
2,350,630 |
2,364,725 |
2,350,630 |
Share
Warrant Reserve |
|
- |
- |
- |
Retained Earnings |
|
(995,273) |
(870,386) |
(974,694) |
Total
Equity |
|
2,009,357 |
2,148,339 |
2,029,936 |
Unaudited Statement of Changes in Shareholders’ Equity |
|
|
|
|
|
for
the period ended 31 July 2020 |
|
|
|
|
|
|
Share
capital |
Share
premium |
Share
warrant reserve |
Retained earnings |
Total |
|
£ |
£ |
£ |
£ |
£ |
Audited Changes in Equity for the period ended 31 January
2018 |
654,000 |
2,350,630 |
14,095 |
(781,716) |
2,237,009 |
|
|
|
|
|
|
Comprehensive loss for the period |
- |
- |
- |
(28,538) |
(28,538) |
|
|
|
|
|
|
Audited Changes in Equity for the period ended 31 January
2019 |
654,000 |
2,350,630 |
14,095 |
(810,254) |
2,208,471 |
|
|
|
|
|
|
Comprehensive loss for the period |
|
|
|
(178,535) |
(178,535) |
Warrants expired during the period |
- |
- |
(14,095) |
14,095 |
- |
Audited Changes in Equity for the period ended 31 January
2019 |
654,000 |
2,350,630 |
- |
(974,694) |
2,029,936 |
|
|
|
|
|
|
Comprehensive loss for the period |
- |
- |
- |
(20,579) |
(20,579) |
Warrant cancellation |
|
|
|
- |
- |
Unaudited Changes in Equity for the period ended 31 July
2020 |
654,000 |
2,350,630 |
- |
(995,273) |
2,009,357 |
UNAUDITED CASH FLOW STATEMENT FOR THE |
|
|
|
6
MONTHS ENDED 31 JULY 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
31/07/2020 |
31/07/2019 |
31/01/2020 |
|
2020 |
2019 |
2020 |
|
£ |
£ |
£ |
Cash
flows from operating activities |
|
|
|
(Loss)
for the year before tax |
(20,579) |
(60,132) |
(178,535) |
Investment income |
(13,430) |
(14,379) |
(37,797) |
Foreign Currency exchange gain/ loss |
(46,013) |
- |
29,947 |
Decrease/ (increase) in receivables |
(9,079) |
(19,833) |
(43,869) |
(Decrease)/ increase in payables |
(35,237) |
(31,890) |
5,964 |
Net
cash outflow from operating activities |
(124,338) |
(126,234) |
(224,290) |
|
|
|
|
Cash
flows from investing activities |
|
|
|
Finance income received net |
13,430 |
14,379 |
37,797 |
Purchase of investments |
- |
- |
(81,526) |
Net
cash outflow from investing activities |
13,430 |
14,379 |
(43,729) |
|
|
|
|
Net
decrease in cash and cash equivalents during the year |
(110,908) |
(111,855) |
(268,019) |
|
|
|
|
Cash
at the beginning of year |
262,844 |
530,862 |
530,863 |
|
|
|
|
Cash
and cash equivalents at the end of the year |
151,936 |
419,007 |
262,844 |
UNAUDITED CASH FLOW
STATEMENT FOR THE
6 MONTHS ENDED
31 JULY 2020
NOTES TO THE FINANCIAL STATEMENTS
- 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
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 2020.
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 2020 has not been reviewed or
audited. The interim financial report has been approved by the
Board on 29 October 2020.
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 |
|
31/07/2020 |
31/07/2019 |
31/01/2020 |
|
|
|
|
Loss
from continuing operations attributable to equity holders of the
company |
(20,579) |
(60,132) |
(178,535) |
Weighted average number of ordinary shares in issue |
65,400,000 |
65,400,000 |
65,400,000 |
|
Pence |
Pence |
Pence |
Basic
and fully diluted loss per share from continuing operations
(Pence) |
(0.0003) |
(0.0009) |
(0.0027) |
4. Copies of Interim Accounts
Copies of the interim results are
available at the Group´s website at: www.limitlessearthplc.com.