Piers Pottinger has stepped down as chairman at AIM-listed MySQUAR amid an ongoing internal inquiry into “financial irregularities” at the app developer.
Pottinger had been leading the inquiry but he believes interim chief executive Stephen Chong and Stephen Austin, a non-executive director, are better placed to find out what went wrong.
Pottinger — formerly of collapsed PR firm Bell Pottinger — had been absent from the company through illness and as a result he was not made fully aware of expenditure and financing details at MySQUAR.
A source close to Pottinger said: “Piers thought about it overnight and thought ‘what am I adding here?’”
It is believed as much as £1 million is unaccounted for and there are fears that, should the funds not be retrieved, the company could go bust.
MySQUAR develops children’s gaming apps including Wushu King, MyFish and My Hero — Bo Lattae.
On Monday the company said it had sought to draw down on a $1 million loan facility from Rising Dragon Singapore Limited without success.
The firm has also cancelled its proposed £600,000 placing, which was announced last week.
Rising Dragon Singapore has a 4.5% stake in the company and is run by former MySQUAR chief executive Eric Schaer. He resigned last month with a 12-month salary pay-off shortly after it revealed it expects losses to increase substantially for the year. Schaer declined to comment.
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