9th Jun 2015 07:51
LONDON (Alliance News) - 3Legs Resources PLC shares rose on Tuesday after it said it has appointed Non-Executive Director Richard Armstrong as the company's new non-executive chairman with immediate effect, and said it will propose changing the company's investment policy to one focused on life sciences at the next annual general meeting.
3Legs currently has an investment policy focused around the technology and resource sectors in North America, Asia and Europe.
3Leg shares were up 25% to 0.320 pence per share Tuesday morning, having jumped to 0.37p.
3Legs promoted Armstrong at the same time it appointed two new non-executive directors to the board and conducted a large placing. James Mellon and Gregory Bailey have joined the board with immediate effect, and 3Legs has raised GBP500,000 from placing 185.2 million shares at 0.27 pence per share.
The 185.2 million shares represent 29.94% of the company's issued share capital, and the subscribers included Mellon, Bailey and two institutional investors. Mellon subscribed to over 37.0 million shares to take a 5.99% stake whilst Bailey subscribed to 92.6 million shares for a 14.97% stake.
The two institutional investors were Galloway Ltd, which subscribed to over 37.0 million shares for a 5.99% stake, and Port Erin Biopharma Investments Ltd, which bought 18.5 million shares for a 2.99% stake.
3Legs said Galloway Ltd is indirectly wholly-owned by the trustee of a settlement under which James Mellon has a life interest. Mellon also is the non-executive chairman of Port Erin Biopharma.
"Following the subscription and board appointments, the directors will propose a resolution at the next annual general meeting to change the company's investing policy to focus on the life sciences sector," it said in a statement.
3Legs did not release any further information about when the meeting will be held or any details concerning the new proposed investment policy in the life sciences sector.
However, 3Legs did note that new non-executive director Mellon has an arrest warrant in his name related to his alleged involvement in a conspiracy to manipulate the share price of Regent Securities Co Ltd. The arrest warrant was originally issued by the South Korean government in September 2000 and reissued in 2004.
Mellon has informed 3Legs that he "denies these allegations which are without substance", said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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