Concha shares dive on 'apparent financial irregularities'

27th Aug 2013 09:16

AIM-listed Concha saw its shares plunge by almost a third on Tuesday after revealing it had 'uncovered apparent financial irregularities' which indicated a 'significant working capital shortfall' within one of its investee companies, Moshen. Concha, which invests in media, communications?and technology firms, said it had been made aware of a 'significant creditor claim resulting from a material contract which was not disclosed as part of the due diligence exercise performed prior to its investment' and was working with its advisors to clarify and resolve the situation. The Chief Executive of Moshen was suspended pending the outcome of the investigation. Concha has provided in the region of £0.867m funding in total to Moshen, comprising approximately £0.4m as equity, and the remainder as a secured term loan. In a statement the group said: "The irregularity pertains to a contract unconnected with Moshen's core trading activities and relates solely to that company. Consequently, Concha's other investments and its ability to continue as an? investing company will remain unaffected."NR