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Annual Results

3Legs operating losses narrow

29 June 2015 07:38

3Legs Resources posts a loss of £35.0m for the year to the end of December - up from ££4.3m in 2013. But operating losses fell to £975,000 from £3.6m.

The company was listed on the AIM market in June 2011 having raised £62.5m before expenses in order to focus on the exploration and development of unconventional oil and gas resources in Europe.

However, in view of the disappointing results the then board announced last September that it had concluded that it could not justify further investment in its concessions.

After considering the options open to it, the board decided that the return of the remaining cash resources, net of wind up costs, to shareholders followed by an orderly liquidation would be in their best interests.

Subsequently, a group of investors approached the then board to explore whether it would consider an alternative to liquidation that would offer the Company's then shareholders some additional value.

These shareholders would receive a slightly larger sum of cash, since the company would save the costs of liquidation, and would also have a continuing interest in the company which was valued at £0.2m at the price at which new investors proposed to invest (in the event, the sum of £0.8m) into the company.

The board decided to put this alternative proposal to shareholders, who duly voted in favour at a meeting held on 13 February 2015, at which they also approved the second and final distribution of cash of £1.1m or 1.33p per ordinary share. Shareholders also voted to adopt the new investing policy, namely to invest in and/or acquire companies within the technology sector or within the resources sector. However, subject to shareholders' approval at the annual general meeting on 31 July, the planned focus of the company's Investing Policy will be amended to that of life sciences and related technologies. In early June, the Company secured additional funding of £0.5m representing 29.9% of the enlarged share capital, from Jim Mellon and Dr Greg Bailey, both of whom have joined the board.

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Related Company: 3LEG

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