3rd Mar 2016 09:51
LONDON (Alliance News) - 3Legs Resources PLC on Thursday said it has agreed a reverse takeover SalvaRx Ltd and said it will raise funds in a share placing for working capital requirements.
3Legs will change its name to SalvaRx Group PLC following completion of the deal.
3Legs said it will acquire the rest of SalvaRx Ltd it does not already own for GBP8.8 million, to be satisfied by the issue of 24.8 million shares at 35.5 pence per share and constituting a reverse takeover. The stock is suspended from trading on AIM, last quoted at 0.288p.
SalvaRx is a cancer immunotherapy development company and owns a 61% stake in iOx, a compkany developing a series of cancer immunotherapy compounds.
"We are very pleased to have agreed the acquisition of SalvaRx, subject to shareholder approval. The business has a strong and experienced management team in the cancer immunotherapy sector which is an exciting and fast growing market," said Richard Armstrong.
In addition, 3Legs said it will raise around GBP2.0 million through a placing of shares at the same 35.5p to provide working capital for the enlarged group, implying it will issue around 5.6 million shares.
By Sam Unsted; [email protected]; @SamUAtAlliance
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