CryptoLogic finds requisitions for EGM insufficient

After comparing the requisitions against the company’s shareholder register, CryptoLogic’s board of directors believes that the requisitions do not relate to shares equaling a minimum of 10% of the issued and outstanding voting stock of the company, which is the threshold required by law to allow shareholders to requisition an EGM. In a letter sent yesterday, the company advised Aziz and Cede & Co. of the insufficiency of the requisitions, and of various other deficiencies and concerns with respect to the requisitions.

CryptoLogic’s board reiterated the view expressed to Aziz that an EGM - with its substantial distraction and expense - is not in the best interests of shareholders at a time when the board and management are focusing on returning the company to profitability. 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.

"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," said Brian Hadfield, CryptoLogic’s President and CEO. "Delivering value for customers and shareholders is our highest priority, and we will not be distracted from that goal."