Revolution Beauty Group PLC (AIM:REVB) is negotiating with co-founders Adam Minto and Tom Allsworth to settle payments surrounding issues during their tenures at the company.
Minto, the former chief executive officer, could be forced to pay £3 million due to events that delayed the audit of full-year results and the suspension of shares on AIM.
A deal with Minto was first reported over the weekend and could be completed over the coming weeks, Sky News said.
Allsworth, the former chairman, is working with the company in a separate deal to alter the timetable for payments owed to him in relation to his stake in Medichem, a beauty product manufacturer, the report added.
Revolution Beauty warned negotiations are still underway and there is no guarantee an agreement will be made.
Minto and Allsworth quit the beauty company back in September 2022 in relation to the accounting issues.
Shares in the company have fallen by 82% since it was listed in 2021 and have struggled to bounce back from the lows of December 2022, when its suspension from the AIM market was lifted.
Revolution Beauty opened 3% lower in early Monday trading, having begun trading at 30.5p.