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Winnileaks Expose: Is John Zorbas of Management Resource Solutions lying again?

By Tom Winnifrith, The Sheriff of AIM | Sunday 12 May 2019


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.


At the investor presentation on 2 May at the offices of uber expensive PR posh-wits FTI Consulting, which was attended by over 20 sceptical and angry investors, Management Resource Solutions (MRS) boss John Zorbas again showed he was, quite possibly, a liar.

Nomad Arden has access to a recording of that meeting. If it now reads the document below, obtained via Winnileaks, it will see that Zorbas has made statements that must mean that Arden must surely consider its position.

Asked about the identity of Cavialeco, the third largest investor (after Zorbas and AIM bad boy Leon Hogan) in the July 2018 placing to “employees, contractors and directors”, Zorbas said Cavialeco are “consultants to me, they assist me in my services to MRS”. He also said that Cavialeco is “owned by an associate”, whatever that means.

Asked about Leinad, which is based in the same office as Zorbas and which has Alex Dementev of Captor Capital as a director, he said “I don’t own it at all, but I know who does”.

Thanks to Winnileaks I can now show you, below, a KYC document signed by Dementev and submitted to a law firm in December 2018, showing (item 9 on the last page) that Zorbas owns 25% or more of Leinad. So either a) he has lied again, b) false KYC information was submitted, or c) he has recently sold his stake in Leinad. Even more extraordinary is that the document was last edited by Elliott Talbott, who Zorbas claimed in an RNS not to know well or to have any business dealings with as he sought to justify the ludicrous Alerion deal as n on related party and totally at arms length.

To Paul Shackleton of Arden, I know the retainer income is useful but surely this is one inconsistency too much even for you? Resign!

 

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