27th Jan 2015 13:22
LONDON (Alliance News) - The directors of 3Legs Resources PLC Tuesday convened an extraordinary general meeting to allow shareholders to vote on proposals to return all its remaining cash reserves to shareholders, raise new funds through a share subscription and adopt a new investing policy.
The company had previously announced plans to put itself into a members' voluntary liquidation. However, the directors now think the new proposals will serve the interests of shareholders better than the liquidation of the company.
The directors are proposing the return of GBP1.1 million at 1.28 pence per share, and a subsequent subscription to raise GBP800,460 through the issue of 345.0 million shares at 0.232 pence each.
They propose adopting an investing policy focusing on new investments in the natural resources and technology sectors, and appointing new directors Richard Armstrong and Colin Weinberg. Non-Executive Independent Chairman Tim Eggar and Chief Executive Officer Kamlesh Parmar will resign upon their appointment.
The directors argue that this will "serve the interests of shareholders better than a liquidation, since they will enable an immediate distribution of the company's remaining cash reserves (after expenses) without incurring the additional cost and delay of a liquidation process."
Shares in 3Legs are up 15.7% at 0.983 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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