TIDMLME
30 October 2019
LIMITLESS EARTH PLC
("Limitless" or the "Company")
UNAUDITED HALF-YEARLY RESULTS FOR THE SIX MONTHSED 31 JULY 2019
The Company is pleased to announce its half-yearly result for the six months to
31 July 2019.
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 4 investments, and reports on these as follows:
Saxa Gres S.p.A 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. The company recently announced news that it
was doubling production, was tendering for prestigious projects including
Microsoft's new Seattle Office and was in discussions regarding a potential JV
with a Chinese conglomerate.
Limitless has made three investments in Saxa Gres. Limitless holds EUR617,000
listed loan notes, which matured in the period under review and were rolled
into new notes of 7 per cent. with a maturity of 2023, and an unlisted EUR
75,000 10 per cent. loan note with an option to acquire approximately 2.38 per
cent. of the equity share capital of Saxa Gres at an exercise price of EUR1EUR
per share.
The Board of Limitless is pleased with the progress that Saxa Gres has made in
recent years.
V-Nova Ltd. 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.
Limitless is pleased to learn that Moving Picture Experts Group (MPEG) has
selected V-Nova's technology to become a new standard (MPEG5-Part2), which is
expected to yield V-Nova a recurring revenue stream for a long period.
V-Nova's management have helped ensure that the company's technology is
becoming an integrated world standard. Limitless is now optimistic that V-Nova
is at a stage of development where it will be able to exploit its years of hard
work and, importantly, recoup its investment to date as it progresses towards
reaching profitability and expanding V-Nova's patented capabilities in as many
verticals as possible.
Limitless invested GBP500,000 in V-Nova on 18 December 2015 in a convertible loan
note, which is subsequently converted in April 2017 into Series B1
participating shares at a valuation of V-Nova of c. GBP80 million.
Chronix Biomedical, inc. , 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 transplant
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.
In June 2018, Chronix signed it 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 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, subject to a minimum
number of tests being performed each year.
The Board of Limitless 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 is actively raising
funds to support such objectives and to support the company to financial
breakeven in a few years.
To date, Limitless has invested US$600,000 in Chronix, which includes a
follow-on investment made recently of US$100,000, by way of convertible
preference stock and a 6 per cent. convertible loan note.
The Company has been informed that Chronix is currently embarking on another
funding round as it requires additional working capital to support the business
until the revenue from its current contracts are sufficient for Chronix to
become profitable.
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 improving 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.
The Board of Limitless 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. Recently, Exogenesis announced that it had received 510(k)
clearance from the FDA for its Hernia Mesh, the first soft tissue repair device
with a nano-modified surface, which provides some 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.
The Board understands as per previous years, that cost control is important at
all times and on behalf of the shareholders, the directors carefully keep
operating costs to a minimum to preserve shareholder value.
For the period, Limitless made a net loss on operations of GBP60,132 (31 July
2018: GBP55,427 and 31 January 2019: GBP28,539) and the unaudited balance sheet
reflects the cash and cash equivalents at the reporting date of GBP419,007 (31
July 2018: GBP591,504 and 31 January 2019: GBP530,863) and Investments held for
trading totalling GBP1,711,809 (31 July 2018: GBP1,603,268 and 31 January 2019: GBP
1,711,809).
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/Tony Rawlinson
Peterhouse Corporate Finance Limited +44 20
7469 0930
Joint Broker
www.pcorpfin.com
Peter Greensmith
UNAUDITED INCOME STATEMENT AND STATEMENT OF
COMPREHENSIVE INCOME
6 MONTHSED 31 JULY 2019
Notes Unaudited Unaudited Audited
31/07/2019 31/07/2018 31/01/2019
Continuing operations GBP GBP GBP
Investment Income 14,379 28,496 47,312
Total Income 14,379 28,496 47,312
Administration expenses (74,511) (83,923) (184,392)
Foreign currency exchange 108,541
gain
Operating loss and loss (60,132) (55,427) (28,539)
before taxation
Taxation - - -
Loss for the period (60,132) (55,427) (28,539)
Total Comprehensive loss for the (60,132) (55,427) (28,539)
period
Earnings per share:
Basic and diluted loss per 3 (0.09p) (0.09p) (0.04p)
share
There are no items of other comprehesive income.
UNAUDITED STATEMENT OF FINANCIAL
POSITION
AS AT 31 JULY 2019
Unaudited Unaudited Audited
31/07/2019 31/07/2018 31/01/2019
GBP GBP GBP
Current assets
Investments held for trading 1,711,809 1,603,268 1,711,809
Trade and Other receivables 53,123 33,295 33,289
Cash 419,007 591,504 530,863
2,183,939 2,228,067 2,275,961
Total Assets 2,183,939 2,228,067 2,275,961
Current Liabilities
Trade and other payables (35,600) (46,485) (67,490)
Net Assets 2,148,339 2,181,582 2,208,471
Equity
Issued Share Capital 654,000 654,000 654,000
Share Premium 2,364,725 2,350,630 2,350,630
Share Warrant Reserve - 14,095 14,095
Retained Earnings (870,386) (837,143) (810,254)
Total Equity 2,148,339 2,181,582 2,208,471
Unaudited Statement of Changes in
Shareholders' Equity
for the period ended 31 July 2019
Share
Share Share warrant Retained
capital premium reserve earnings Total
GBP GBP GBP GBP GBP
Audited Changes in Equity 654,000 2,350,630 14,095 (781,716) 2,237,009
for the period ended 31
January 2018
Comprehensive loss for the - - - (28,538) (28,538)
period
Total contributions by the - - - (28,538) (28,538)
owners
At 31 January 2019 654,000 2,350,630 14,095 (810,254) 2,208,471
Audited Changes in Equity 654,000 2,350,630 14,095 (781,716) 2,237,009
for the period ended 31
January 2018
Comprehensive loss for the - - - (55,427) (55,427)
period
Total contributions by the - - - (55,427) (55,427)
owners
At 31 July 2018 654,000 2,350,630 14,095 (837,143) 2,181,582
Unaudited Changes in Equity 654,000 2,350,630 14,095 (810,254) 2,208,471
for the period ended 31
January 2019
Comprehensive loss for the - - - (60,132) (60,132)
period
Warrant cancellation 14,095 (14,095) - -
Total contributions by the - 14,095 (14,095) (60,132) (60,132)
owners
Unaudited Changes in Equity 654,000 2,364,725 - (870,386) 2,148,339
for the period ended 31 July
2019
UNAUDITED CASH FLOW STATEMENT FOR THE
6 MONTHS ENDED 31 JULY 2019
Unaudited Unaudited Unaudited
31/07/2019 31/07/2018 31/07/2019
2019 2018 2019
GBP GBP GBP
Cash flows from operating
activities
(Loss) for the year before (60,132) (55,427) (28,538)
tax
Investment income (14,379) (28,496) (47,312)
Foreign Currency exchange - - (108,541)
gain
Decrease/ (increase) in (19,833) 5,834 5,839
receivables
(Decrease)/ increase in (31,890) (7,236) 13,770
payables
Net cash outflow from (126,234) (85,325) (164,782)
operating activities
Cash flows from investing
activities
Finance income received net 14,379 28,496 47,312
Purchase of investments - - -
Net cash outflow from 14,379 28,496 47,312
investing activities
Net decrease in cash and (111,855) (56,829) (117,470)
cash equivalents during the
year
Cash at the beginning of 530,862 648,333 648,333
year
Cash and cash equivalents at 419,007 591,504 530,863
the end of the year
NOTES TO THE FINANCIAL STATEMENTS
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 30 Percy Street, London
W1T 2DB.
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 2018.
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 2019 has not
been reviewed or audited. The interim financial report has been approved by the
Board on 30 October 2019.
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
31/07/2019 31/07/2018 31/01/2019
Loss from continuing (60,132) (55,427) (28,539)
operations attributable to
equity holders of the company
Weighted average number of 65,400,000 65,400,000 65,400,000
ordinary shares in issue
Pence Pence Pence
Basic and fully diluted loss (0.09) (0.09) (0.04)
per share from continuing
operations (Pence)
IAS 33 requires presentation of diluted earnings per share when a company could
be called upon to issue shares that would decrease earnings per share or
increase net loss per share. For a loss-making company with outstanding share
options and warrants, net loss per share would only be increased by the
exercise of out-of-the money options and warrants. Since it seems inappropriate
that option holders would act irrationally, no adjustment has been made to
diluted earnings per share for out-of-the money options and warrants in the
comparatives. There are no other potentially diluting share issues.
4. Events after the reporting period
On 20th September 2019, the Company announced that it has made a further
investment in Chronix Biomedical, Inc. a developer of novel blood-based cancer
molecular diagnostics, of approximately US$100,000. The investment was in an
unsecured Convertible Promissory Note with an interest rate of six per cent.
per annum. Further details of the investment are included in the Company's RIS
announcement.
5. Copies of Interim Accounts
Copies of the interim results are available at the Group´s website at
www.limitlessearthplc.com.
END
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