LONDON (Alliance News) - Management Resource Solutions PLC said Friday it is commissioning an independent legal review into shareholder concerns over "potential conflicts of interest" in the recent acquisition of Alerion Consulting Ltd.
In late March, Management Resource Solutions acquired aerial drone operator Alerion for GBP1.3 million. Management Resource Solutions issued 26.4 million shares at 5 pence each to Alerion's founder Elliott Talbott to cover for the acquisition cost.
Management Resource Solution shareholders then requisitioned a general meeting over claims Talbott had admitted in an investor presentation on May 2 that Alerion had "never even completed a survey", and Management Resource Solution Chief Executive Paul Brenton admitted that he "didn't look at any other drone operators" as alternative acquisitions to Alerion.
At the meeting, held last Wednesday, shareholders proposed the removal of Non-Executive Chair John Zorbas and Finance Director Timothy Jones.
The resolutions also sought to appoint three new directors: Nigel Burton, Trevor Brown and Daniel Smith.
None of the resolutions passed but 45% voted in favour of removing Zorbas and Jones.
Amid the effort to remove him, Zorbas announced he will be stepping down as chair at the end of August.
In response to the concerns of the large minority of shareholders, the company has launched a legal, and also valuation, review of the Alerion deal.
"The legal report is progressing in line with expectations and the scope and terms of the valuation report are now agreed in principal," the company said.
Management Resource Solutions added: "As previously stated, the overall conclusions of both reports will be announced as soon as they are available and the board envisages that this will be in the second half of June for the legal report, and no later than early July for the valuation report."
Shares in Management Resource Solutions were untraded Friday but last closed at 2.82 pence each.