Former CEO Continues to Pressure CryptoLogic (Update)

February 20, 2009 (InfoPowa News) — The former CEO of online gambling software provider CryptoLogic, Javaid Aziz, is pressuring the company for an Extraordinary General Meeting of shareholders. Aziz, who holds 12.5 percent of the company's stock, has enlisting the support of other shareholders, and has been critical of the direction in which the company is headed.
 
He recently sent a letter to the board expressing his view that the company should promptly execute on a recovery plan designed to stabilize revenues, streamline size and operations, achieve cost reductions, more effectively manage cash flows, and take other steps to improve operating and financial performance.
 
Aziz, who was chief executive of CryptoLogic between April 2007 and February 2008, additionally asked for two board nominees in his original demands for better performance from the company, but this was rejected by the board of directors, who felt that the current management was already engaged in addressing some of the criticisms raised by Aziz.
 
This appeared to be the case last month, when the company announced some $13 million in operating cost cuts and forecast net profits of $9 million – $10 million for 2009.
 
Aziz stands to benefit if there is a change of management control at Crypto prior to the end of April 2009. In addition to a £1.2 million departure check, his farewell agreement included a clause entitling him to an additional bonus of €1.5 million should that situation eventuate.
 
A CryptoLogic spokesman said that Aziz's latest letter was under review by the board of directors.