20 September 2019
LIMITLESS EARTH
PLC
("Limitless" or
the "Company")
Further Investment
in Chronix Biomedical, Inc.
Limitless Earth plc (“Limitless”), an AIM quoted investing
company, is pleased to announce that it has made a further
investment in Chronix Biomedical, Inc. (“Chronix”), a developer of
novel blood-based cancer molecular diagnostics, of approximately
US$100,000.
Limitless previously announced an investment in Chronix on
8 October 2015 of US$500,000 (approximately £329,511) by way of
convertible preference stock at a price of US$0.40 per share at a valuation of approximately
US$69 million.
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.
The Cancer test is based on a patented technology whereby the
Company can identify gains and losses in cell free DNA that allow
them to determine if a cancer therapy is working. The patented
transplant surveillance test allows the Company to determine if the
organ that is transplanted is being accepted or rejected, and
thereby allows the physician to alter the immunosuppressive drug
regimen given to the patient. Chronix has 13 patents granted or
allowed in North America and
Europe.
Since the Company’s first investment, Chronix signed it first
commercial agreement in June 2018
with Amedes Medical Services GmbH, 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
independent research analysts have estimated the net present value
of the licensing payments to Chronix over the life of the agreement
to be approximately $92 million.
Chronix is also currently negotiating further license agreements
with a number of other entities.
Chronix is raising funds in order to provide it with additional
working capital to advance several clinical trials, defend its
intellectual property portfolio and to allow the company to further
commercialisation of products in Europe and North
America.
Investment Terms
The Company’s further investment in Chronix comprises
US$100,000 unsecured Convertible
Promissory Note ("Note") with an interest rate of six per cent
per annum. The principle and all accrued and unpaid
interest is due upon the earlier of (a) immediately prior to the
completion of a corporate transaction; (b) the Company having net
cash reserves of at least $2,500,000;
(c) 21 September 2021; or (d) in the event of default by
Chronix.
The Company has invested in the Note alongside other investors.
The Convertible Promissory Notes issued rank pari passu, and all
payments on account of principal and interest will be applied
proportionately on the basis of the principal amount outstanding.
Conversion is at the election of the lender and the terms of the
Note allow conversion at the same or preferential terms to future
fundraising by Chronix.
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.