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Limitless Earth Plc - Further Investment Chronix Biomedical Inc

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.

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