July 6 (Reuters) - Velocys Plc, whose technology is used to convert gas to liquid fuels, said on Monday it suspended Chief Executive Roy Lipski, pending an investigation into “serious allegations” of misconduct.
The company’s shares plunged as much as 21 percent.
Velocys did not disclose details on the nature of the misconduct but said it did not involve fraud or financial impropriety.
“Lipski’s suspension does not constitute disciplinary action and does not imply any assumption whatsoever that he is guilty of any misconduct,” the company said.
Velocys, which develops technology to produce cleaner fuels from both conventional and renewable sources such as bio-waste, said CFO Susan Robertson would act as chief executive for the duration of Lipski’s suspension.
Shares in the company recovered some of the initial losses to trade down 16.3 percent at 97 pence at 0219 GMT. The stock was among the top losers on the London Stock Exchange.
Up to Friday’s close, the stock had lost more than a quarter in value since June, when star UK fund manager Neil Woodford said it had sold off its position in the company. (Reporting by Esha Vaish in Bengaluru; Editing by Saumyadeb Chakrabarty)