Flailing tech venture capitalist Chapmans has denied a relationship with the Malaysian company that was behind the liquidation of small cap explorer Capital Mining.

It has also said that chairman Peter Dykes does still live in Sydney, but is spending “significant time in Malaysia” to set up a local office there.

Chapmans (ASX:CHP) has been fending off questions about their dealings with Capital Mining, a failed explorer/cannabis wannabe, and whether Mr Dkyes and former director Anthony Dunlop have in fact moved to Kuala Lumpur permanently.

Chapmans has refused to respond to questions from Stockhead via email, phone or text for over four months.

“Never had any relationship”

In a brief response to a series of questions from the ASX, released the day before Christmas, Chapmans denied it had a relationship with ADP after that company claimed it did on its now-offline website.

The ASX in its letter pointed out that Chapman’s address in Malaysia, as seen on its ASX statements, was the same as that mentioned by ADP on its website.

Chapmans denied it had anything to do with an initial coin offer (ICO) that ADP was looking to launch (the white paper for which has been taken offline) and said it wasn’t a related party of Capital Mining, as had been alleged by the company’s administrators Andrew Cummins & Peter Krejci of BRI Ferrier.

Capital Mining went into administration in May after years of struggling to be an explorer — and a cannabis company.

The ASX is still digging

The ASX outlined the dealings between Chapmans and Capital Mining in December when it kicked the company off the bourse for “potential Listing Rule breaches”, and a failure to respond to a query letter by deadline.

That letter outlined financial arrangements uncovered by the corporate administrator between Capital Mining and Chapmans.

Up until recently the two companies shared Mr Dunlop and Mr Dykes as directors.

Capital Mining loaned to Chapmans $1.9m in 2016 and $1.7m in 2017, according to the administrators’ report.

Chapmans had only paid back $750,00 by June this year.

An undated loan agreement shows the explorer issued a loan of an unspecified amount to Chapmans, due in 180 days, and organised by its directors Peter Dykes and former stockbroker Peter Torney.

Chapmans also charged consulting fees to Capital Mining of $1.4m in both 2016 and 2017.

A litany of failed opportunities

It was not a great Christmas for Chapmans investors, who also had to swallow the news that investee 20FOUR Holdings, a mobile digital media company, was put into liquidation on December 21.

Chapmans shareholders have suffered through years of bad investments.

There was the Capital Mining, and they had to walk back a promised $4m investment in US cryptocurrency platform Securrency last year, eventually only making one of four investments.

And Chapmans likely failed to make any money on the sale off its stake in Fantasy Sports Global earlier this year.

The other current investments are Syn Dynamics, cannabis play MJ Life Sciences, and crypto miner GPU.One.