August 27, 2013 / 6:38 AM / 4 years ago

Concha investigating financial irregularities at app firm Moshen

LONDON, Aug 27 (Reuters) - British investment group Concha said it had discovered possible financial irregularities at one of its investee companies, UK digital app company Moshen Limited.

Concha said on Tuesday it had “uncovered apparent financial irregularities which indicate a significant working capital shortfall” at Moshen, whose chief executive has been suspended pending the outcome of the investigation.

The investment group said it had been made aware of a “significant creditor claim” resulting from a contract, which was not disclosed as part of the due diligence exercise performed prior to its investment.

Concha paid 250,000 pounds ($389,500) for a 40 percent stake in Moshen in April. It has since invested around 867,000 pounds in the creator, distributor and market maker for digital apps.

Its investment is made up of around 400,000 in equity, and some 467,000 as secured term loans.

Concha, formerly known as Hot Tuna, said it was working with its advisers to assess liabilities and the possible impact on its investment in Moshen.

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