A filing on Companies House reveals that MJS Capital (renamed Colarb Capital in October 2018) has gone into liqudation.
MJS Capital issued 5 year bonds paying up to 9.85% per year. Despite the inherent high risk nature of a loan to a micro-cap startup company, multiple MJS directors repeatedly and inaccurately claimed that the investment was “low risk”.
A winding up hearing was held a month ago on 20 February. Since then MJS Capital CEO Shaun Prince has reportedly been trying to persuade investors in his collapsed firm to use his preferred liquidator.
MJS Capital began defaulting on repayments of capital and interest in early 2018. Despite its inability to repay investors on time, Prince claimed in an email to investors in July 2018 that the company was performing “fantastically”.
At the same time, MJS Capital was trying to persuade investors to defer repayment for a year, which was dressed up as a “switch” to new “Colarb 4” bonds which were supposedly capital protected by an insurance policy. This insurance policy was explicitly claimed to “protect the investors capital and coupon” [sic] and described as better than the Financial Services Compensation Scheme. The claim that MJS Capital bonds have equivalent or better cover to the FSCS is of course completely false.
Prince claimed to the Evening Standard last November that MJS Capital took in £20 million of investors’ money. How much of this is left is not yet known. We’ll bring you more as and when the liquidators file their reports.