Ex-CryptoLogic CEO Keeps Trying

February 24, 2009 | News Category: Casino Software

0 Comments

CryptoLogic and their former chief executive officer, Javaid Aziz, are once again in the news. Javaid Aziz has unsuccessfully and continually attempted to unseat CryptoLogic's directors since he was let go about a year ago.

CryptoLogic's Board of Directors received letters from Aziz and Cede & Co. which contained a request for an EGM (extraordinary general meeting) to be held for CryptoLogic's shareholders. After examining the company's shareholder register, CryptoLogic made the decision that there were less than 10 percent of voting shareholders who would require an EGM. The 10 percent threshold is the amount of shareholders which the law requires in order for an EGM to be called. CryptoLogic responded by letter to Aziz and Cede and Co. explaining the reasons for denying the requisition.

CryptoLogic is currently undergoing the implementation of a new business strategy, in which they are working hard to return the company to a profitable state. The strategy they are following includes lowering costs, attracting new customers, and ensuring that they lead the online software market with innovation.

Brian Hadfield, the current CEO and president of CryptoLogic said "CryptoLogic's new business strategy is in the advanced stages of implementation, and shareholders will have an opportunity to evaluate the company's progress at an annual general meeting expected in late May or early June."

An EGM could well trigger a change in control at CryptoLogic, which would personally benefit Mr. Aziz. Upon Aziz's termination in February 2008, he received a £1.2 million departure check, in addition to which, his departure agreement included a clause which would give him a further £1.4 million should a change of control occur before the end of April 2009. Aziz has been pushing for this change of control. Not only do CryptoLogic feel that the requirements for an EGM were not met, they also noted that Mr. Aziz failed to stick to the obligations he agreed to on severance. Hadfield said that "his failure to adhere to his obligations has been damaging to the company and its shareholders."

In January, CryptoLogic stated that they expect net profits for the year 2009 in the $9 - $10 million range.

Hadfield also noted that "Delivering value for customers and shareholders is our highest priority, and we will not be distracted from that goal."

InterCasino.com is powered by CryptoLogic. The new Marvel Comic inspired games are available at InterCasino, as well as a number of jackpots, including the Millionaires Club jackpot which has passed the $750,000 mark and currently stands at $757,360 (and still rising) at the time of writing.