UK 22:38 Sunday, 20 September 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
3 Legs Resources (3LEG) would have gone bust without my good pal Jim Mellon going in last June, investing £500,000 for a 29.9% stake and organising a Reverse takeover announced today. So he is a hero. The only problem is that this whole RTO stinks, companies house filings are all over the shop, nothing adds up and the stench of greed is palpable.
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Comments
wildrides
Blimey ……..Makes Oakleys “feeding aspirations” look relatively modest compared with the conspicuous consumption outlined above . “ Water” Mellon looks to have some squirming to do here .
Drunken Sailor
A group of doctors and a professor have been working away on a cancer cure for some time. They are getting somewhere, but they need funding. They set up a Ltd Co and give themselves cheap shares in it – they are the company and they have the IP. They then get another doctor and a wealthy investor, who does bio tech, to put in nearly £2 Million for just over 60% of the equity (bit like a Dragons Den deal). Being doctors they have not got a clue about filing SH01s and it is only when someone with experience reminds them, that they get round to filing the SH01, which is received by Companies House on 25th Jul, ie before not after the Mems and arts. In May Jim and the Dr decide to set up a holding company for their shares in IOX, with the intent of using it as an investment vehicle into IOX. On 9 June Jim Mellon and the doctor put £500k (£250k each) into 3 legs. At that time everyone, who knows anything, knows that means Jim Mellon is going to reverse in a Bio Tech.
On 30 Sep 3 Legs puts some of the cash they got from Jim and the Dr, into Jim and the Drs Holding Company, at the same time Jim and the Dr put the same amount into the holding company. Aha so this is probably the reverse target then! Get the paperwork done and we are good to go on the investing policy.
The RNS at the time says:
“ a company owned by Jim Mellon and Dr Greg Bailey, which owns 60.5 per cent. of iOx Therapeutics Limited (“iOx”), a NEW company which is developing a series of compounds for cancer immunotherapy”
Anyone who is surprised IOX was only set up in Feb, did not read the RNS.
Also
Related Party Transaction
Jim Mellon and Greg Bailey are both Non-executive Directors of 3Legs and own, in aggregate, 29.9 per cent. of the Company’s issued share capital. They are also Directors of SalvaRx and own 50 per cent. each of its issued share capital. Consequently, the Company’s investment in SalvaRx constitutes a related party transaction under the AIM Rules. The independent directors of 3Legs, being Richard Armstrong and Colin Weinberg consider, having consulted Northland Capital Partners Limited, the Company’s Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.
Richard Armstrong is a decent, honest and honourable bloke.
So far Jim has paid in to the various companies £1,276,280 and so has the Dr.
3 Legs are suspended and in 2 months time will be booted off AIM if they do not do an RTO. Thus if this deal does not go through, then all shareholders in 3 Legs lose everything. And guess what! The deal has gone through all the due diligence, Admissions documents and other malarkey are done. The RTO that was blindingly obviously going to be done all along has been done.
The price the deal is done at is actually the offer price on the last day of trading before suspension, so pretty well all shareholders are getting a good deal on this. Jim’s 3 Legs shares, which are locked in for 12 months are worth £4,728.703. And so are the Drs, nice profit on the £1.2m invested, but NOT Lenigas scale. More money is raised through a placing and there is a commitment to invest more in the Drs and Professors as they cure cancer (hopefully).
So everyone is happy, existing 3 Leg shareholders, Jim and the Dr and the cancer curers.
Now quite clearly there is a lot of hope and faith being put in those Drs and professor and they may well come up with nothing, just like a lot of micro cap bio techs do. But they have funding to continue their work and if they make a breakthrough they still have a stake in the business they set up, which could be worth a bomb. They now have the backing of an AIM listed company to help them. Is this not what markets are for? A bit high risk! for sure, but Jim and the Dr have taken a good share of that risk. As long as their lock ins are not breached, if the whole thing goes down the pan in the next 12 months, they can still lose more than they put in. If the whole thing goes well, they stand to make more, as does everyone in this.
Would I buy shares when the suspension is lifted? Not on your life. I do not like the risks in micro cap biotech. Jim Mellon clearly does. Others who do can follow him, those who stayed in for the shell game part should be able to sell and get out.
This really does not strike me as being anything out of the ordinary for the AIM shell game.
wildrides
Blimey …………. a drunk defending a melon against the outrage of comparison with a lemon giving off gas . I have heard it all now . That was quite an epistle for a man not invested, but not for a man who wants a job . Give him a job Thomas …………… He might just be better researched than you on this topic . But then again I might be wrong …….. anyways “dont be a floater”
Teathers mate Teathers .