(MENAFN- ProactiveInvestors)- adds share sale detail - The future of Globo (LON:GBO) was thrown into doubt today as the mobile app developer revealed its chief executive had confirmed allegations that data and finances had been falsified. It was also revealed today that Costis Papadimitrakopoulos the group's chief executive had also sold almost two-thirds of his holding or more than 42mln shares in the days before the report was published. Shares in the AIM-listed group were suspended on Friday after a US hedge fund Quintessential Capital Management published a report claiming the group had massively overstated its revenue and profit. In a statement today Globo said Costis Papadimitrakopoulos its chief executive had brought 'certain matters regarding the falsification of data and the misrepresentation of the company's financial situation' to the board's attention at an emergency meeting on Saturday to discuss the allegations. Papadimitrakopoulos offered to resign alongside Dimitris Gryparis chief financial officer and both have now stepped down while chief operating officer Gerasimos (Makis) Bonanos has been suspended with immediate effect. A new committee of non-executive board members has been set up to find out what has been going on. 'The committee has initiated discussions with appropriate advisers in relation to the next steps and to ascertain the true financial position of the company. 'In addition the committee has asked the company's lawyers to notify the matter to the appropriate authorities and the committee has informed the company's principal bankers' the statement said. The share sale revelation was in a separate stock market statement which also indicated that Papadimitrakopoulos had pledged 10mln Globo shares under a personal loan agreement with a company called Lantau Holdings. No details on the exact date price of the share sales were released today other than it was before 22 October. Papadimitrakopoulos' stake after the sale amounts to 27.7mln shares or 7.4%. Canaccord Genuity meanwhiile resigned as Globo's joint broker with immediate effect this morning.
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