(Reuters) -Vape maker Chill Brands (LON:CHLL) said on Monday Callum Sommerton had been suspended as its CEO after allegations were raised around the company's use of inside information.
The company said law firm Fieldfisher had been appointed to conduct an investigation into the allegations, but added that Sommerton's suspension did not imply that he was guilty of misconduct.
Sommerton said he was surprised and disappointed by the allegations in response to a message sent via LinkedIn.
"I am confident that I will be vindicated and will avoid further comment at this time to allow the process to run its course," he said.
Chill Brands said vendors, customers and shareholders should be assured the company continues to operate as normal and the process of appointing an interim chief executive was underway.
It will be engaging with the relevant authorities, including the Financial Conduct Authority, and the investigation's findings will be reported in due course, it continued.
The company, whose strategy is centred on a nicotine-free vape product, saw its share price collapse earlier this year when the UK government announced plans to ban disposable vapes. It has since recovered lost ground.
Sommerton is a former intellectual property lawyer who previously worked as Chill Brands international brand director before being appointed chief executive in 2022, according to the company's website and his LinkedIn.