Business
Update on investment in 3Legs Resources plc
Update on investment in 3Legs Resources plc.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 9742Q Vela Technologies PLC 03 March 2016 \n\nVela Technologies plc\n(\"Vela\" or the \"Company\")\nUpdate on investment in 3Legs Resources plc\nVela Technologies plc (AIM: VELA), the investing company focused on early stage and pre-IPO disruptive technology investments, notes the announcement released earlier today by 3Legs Resources plc (\"3Legs\") and the release of the Schedule 1 announcement today.\nFurther to the announcement of 4 November 2015, 3Legs has announced that it has conditionally agreed to acquire the issued share capital that it does not already own in SalvaRx Limited (the \"Acquisition\") for a consideration of £8.8 million to be satisfied by the issue of new ordinary shares in 3Legs at 35.5p per share (following a 100:1 share consolidation) (the \"3Legs Transaction\"). 3Legs has also raised £1.95 million (before expenses) by means of a placing of new ordinary shares at 35.5p per share in order to fund the enlarged group's further development, including working capital needs, as well as the costs associated with the 3Legs Transaction. \nSubject to the passing of the resolutions at a general meeting of 3Legs, in order to better reflect the company's underlying business, 3Legs, as enlarged by the Acquisition, proposes to change its name to SalvaRx Group plc. In addition, it has been agreed by the board of 3Legs that, on completion of the 3Legs Transaction, Jim Mellon will be appointed non-executive Chairman of SalvaRx Group plc. \nAs at the date of this announcement Vela holds 23,500,000 shares in 3Legs, equivalent to 3.80 per cent. of the existing voting rights of 3Legs. On completion of the 3Legs Transaction, and following the proposed 100:1 share consolidation by 3Legs, Vela would hold 235,000 shares in 3Legs, equivalent to 0.64% of the enlarged share capital of 3Legs.\nVela's shareholding in 3Legs has been acquired at an average price of 0.213p per share for a total consideration of approximately £50,090. At the price of the placing being undertaken by 3Legs (being 35.5p per share post-share consolidation and equivalent to 0.355p per share pre-share consolidation), Vela's shareholding in 3Legs has a paper value of £83,425.\nExtracts from 3Legs's announcement are contained below and a link to the 3Legs announcement can be found at: \nhttp://www.londonstockexchange.com/exchange/ne...