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(Sharecast News) - Shares in Chill Brands tanked on Monday morning after the vape maker announced it had suspended its chief executive pending the results of an investigation into the use of inside information.
Chill, which makes nicotine-free vapour products under the CHILLZER0 brand, has appointed law firm Fieldfisher to "conduct an investigation after allegations were raised around the use of inside information", the company said.
Callum Sommerton has been temporarily removed as CEO in connection with these allegations, and the board is currently looking at appointing an interim leader.
"This suspension does not constitute disciplinary action or a disciplinary penalty and does not imply any assumption that Mr Sommerton is guilty of any misconduct or that any decision has been made," the company said.
Just last week, the company received a requisition letter from shareholder Jonathan Swann, who owns a 12.58% stake, who is pushing for an immediate change in leadership.
The letter, which came after a near-halving of the stock over the past year, called for the removal of chief operating officer Trevor Taylor and chief commercial officer Antonio Russo.
The board said it was "deeply concerned" by the situation but "stands behinds its directors".
The stock was down 17.5% at 2.6p, compared with its 52-week high of 14p reached last May.
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