Globo's CEO and CFO resign after revealing financial irregularities

The chief executive and chief financial officer of British mobile technology company Globo resigned on Monday after revealing financial irregularities at the firm.

CEO Costis Papadimitrakopoulos and CFO Dimitris Gryparis told the board of directors on Saturday about “the falsification of data and the misrepresentation” of Globo’s financial information.

The admission came after short-seller Quintessential Capital Management (QCM) alleged Globo had lied about its financial position.

Globo’s shares were suspended for trading on Friday at the request of the company as it called for an emergency meeting to discuss the claims, saying it "completely refutes all allegations made in this report".

However, the company said on Monday that it had suspended chief operating officer Gerasimos Bonanos pending the outcome of an investigation. An independent forensic accounting team will look into QCM's claims, the group said.

Canaccord Genuity has also resigned as Globo’s joint corporate broker.

Papadimitrakopoulos had in preceding days sold 42m shares in the company, reducing his stake to about 7.4%, and pledged 10 million shares under a personal loan agreement that will default at close of business on Monday because of two consecutive days of the suspension of the company's shares from trading.