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Having been embroiled in a public feud with former CEO and 10 percent shareholder, Javaid Azid, the publicly traded online gambling software firm, Cryptologic, can seek some solace in knowing that the Marvel Comics franchise is enjoying some degree of success.
Higher profits and expanding markets for Marvel Entertainment may lead to a trickle-down effect for CryptoLogic Limited (CRYP: 4.78 -1.44%).
CryptoLogic has exclusive gaming and casino rights to Marvel comic book characters, whose brand recognition is rapidly growing.
This week, Gambling911.com reported on the dispute involving Azid and Cryptologic management.
Former Cryptologic CEO, Javaid Aziz, who ran the publicly traded online software company business from April 2007 to February 2008, has been trying to establish a foothold in an effort to gain control. The company this week rejected calls from Aziz to hold an "extraordinary meeting" according to the Financial Times of London.
Aziz 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.
Among the allegations made by Mr. Aziz, that "The Board of Management have effectively Squandered $4.2M of shareholder funds in an abortive foreign exchange transaction (as reported by the Company).
According to the Financial Times report, Stephen Taylor, chief financial officer, said Mr Aziz made repeated demands for money and threats to sue while he was at the helm. Aziz has since denied such allegations.
Recent developments related to Cryptologic seem to support Aziz's claims that the company is being "mismanaged". Cryptologic lost a handful of its clients over the past two months alone. One, the Playboy Casino, shut its doors due to lack of profitability, but it was the abrupt departure of England's second largest bookmaking firm, William Hill, that left many stunned. Hill is now utilizing the Playtech online casino platform.
Jagajeet Chiba, Gambling911.com
