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Seaniemac Reaction to Bad Media Reports
SEANIEMAC MANAGEMENT REACTS TO ADVERSE MEDIA REPORTAGE
Launch of new platform from Optima imminent, says CEO ODriscoll.
Shane ODriscoll, CEO of online gambling operator Seaniemac, has reacted to reports in the Irish media and elsewhere earlier this month which quoted a company statement that if it could not raise more investment capital it may have to cease operating, and has accumulated losses totaling $10 million .
The subject of excessive debt (at that point quoted as $6 million) was addressed in a stakeholder Q&A by ODriscoll in April this year in which he advised stakeholders:
"A substantially large portion of our debt and all of our residual preferred stock obligations predate the merger with SeanieMac International to the days when the public company was Compliance Systems. We believe many of these obligations can and will be settled or removed from the balance sheet in 2016."
ODriscoll revisited this issue in a statement this week reassuring investors that the company remains viable and expects great things from its change of software platform to the Optima system mid-September.
Accusing the media of overstating Seaniemac losses, ODriscoll commented that reporters had incorrectly included $7 million in losses incurred by the US public company before the SeanieMac acquisition, and that the company has invested close to $3 million in brand building and day-to-day operating expenses, illustrating its commitment to the business.
ODriscoll additionally claimed that the acquisition of Apollo Bet earlier this year has delivered "significant growth in turnover."
Seaniemac has been receiving ongoing financing over the past three years, and has planned and transparent credit facilities, ODriscoll asserted. Investment had been received in July and August from existing investors.
“While it is completely true that we rely on outside financing to grow and build our brand the suggestion that we did not have a responsible financing plan in place was not balanced," ODriscoll said.
“Like any start-up we have depended on investment to launch our business and will rely on continued investment to grow."
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