CryptoLogic Fights for Control

Published Monday, February 23, 2009 -

Former chief executive officer for the well known online gambling software provider, CryptoLogic Ltd. Javaid Aziz, has demanded an extraordinary shareholders meeting. Aziz succeeded Lewis Rose as chief executive officer in April of 2007. Then the company replaced Aziz with Brian Hadfield in February of 2008. The company had been highly profitable during the Rose tenure but has been showing a loss since then.

CryptoLogic Ltd has taken steps to fight Aziz and Cede & Co contending that they haven't met the requirements necessary for them to force CryptoLogic to hold an extraordinary shareholder's meeting. The company also said it was Aziz that had violated various terms of his severance agreement.

CryptoLogic Ltd. has recently moved it's headquarters from Toronto Canada to Dublin Ireland and is still in the process of reconfiguring its structure. In an attempt to carve 13 million dollars from it's operations, the focus has been on profitability. Mr. Aziz has added a new twist to that goal. CryptoLogic said it's entitled to get back 1.5 million euros (C$2.6 million) currently held in escrow under terms of Javaid Aziz's severance agreement.

CryptoLogic made substantial payments and commitments to Mr. Aziz in negotiating his severance, and the company believes that his failure to adhere to his obligations has been damaging to the company and its shareholders. "CryptoLogic's management and board are focused and united on the strategy to return the company to profitability by continuing to add new customers, lower our costs and lead the market with innovation," CEO Hadfield said.

"This action is necessary to protect the interests of the company and its shareholders, which is at all times the sole focus of management and the board." Mr. Hadfield added.

Shareholders will have an opportunity to evaluate the company's progress at an annual general meeting expected in late May or early June. CryptoLogic Ltd. shares were up 6.4 per cent on the TSX last week. Good news for those watching this action.

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