WANdisco has appointed an interim non-executive chair to lead the investigation into potential fraud at the listed company.
Share trading in the data activation platform, headquartered in both Sheffield and California, was suspended earlier this month after “significant, sophisticated and potentially fraudulent irregularities” were uncovered.
The company said that an investigation by CEO Dave Richards MBE and CFO Erik Miller pointed towards irregularities “as represented by one senior sales employee… giving rise to a potential material mis-statement of the company’s financial position”.
“The identification of these irregularities will significantly impact the company’s cash position and lead to a material uncertainty regarding its overall financial position and significant going concern issues,” it added.
“The board now expects that anticipated FY22 revenue could be as low as $9 million and not $24m, as previously reported.”
Kenneth Lever will chair the investigation committee supporting the investigation, which includes non-executive directors: Peter Lees, senior independent NED and Karl Monaghan, chairman of the audit committee.
Currently non-executive director at Vertu Motors plc and Rockwood Strategic plc, as well as deputy chairman of Rainier Developments Limited, Lever recently stepped down as chairman of Biffa plc and RPS Group plc.
He has also served as chair of the audit committee at robotic process automation firm Blue Prism plc.
“Ken will provide leadership and direction to the board and oversee the strategic direction and corporate governance of the company,” WANdisco said.
WANdisco, which helps businesses to harness the power within their unstructured data using analytics tools powered by artificial intelligence, had announced plans to explore an additional listing in New York before the news of potential fraud broke.