October 26, 2015 / 2:16 PM / 4 years ago

Globo Plc's CEO and CFO quit after disclosing 'irregularities'

(Reuters) - British mobile technology firm Globo Plc said on Monday its chief executive and chief financial officer had resigned after they disclosed financial irregularities at the company.

Globo said CEO Konstantinos Papadimitrakopoulos and CFO Dimitris Gryparis had brought to the attention of directors “certain matters regarding the falsification of data and misrepresentation of the company’s financial situation.”

U.S. hedge fund Quintessential Capital Management had raised questions last week about Globo’s revenue model and finances.

QCM also said it had a short position in the stock. (bit.ly/1kHyFkU)

Globo denied on Friday all allegations made by the hedge fund and called an emergency board meeting on Saturday to discuss the allegations.

Globo said on Monday that would appoint an independent forensic accounting team to investigate QCM’s claims and had suspended Chief Operating Officer Gerasimos Bonanos pending the outcome of the investigation.

The company also said that up to Oct. 22, Papadimitrakopoulos had sold more than 42 million shares in the company, reducing his stake to about 7.4 percent, and pledged 10 million shares under a personal loan agreement.

Globo said it had asked for further information on the timing and nature of the sales.

In another statement on Monday, the company said Canaccord Genuity had resigned as its joint corporate broker.

Trading in Globo’s shares were suspended on Friday at the request of the company.

The stock fell about 27 percent to 28.25 pence last week, valuing the company at about 106 million pounds.

Reporting by Rahul B in Bengaluru; Editing by Ted Kerr

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