Friday, May 4,2012 : AMAYA GRAPPLING WITH COMPLIANCE ON CRYPTOLOGIC ACQUISITION (Update)
Company received a NASDAQ Staff Deficiency Letter regarding the composition of its board and audit committee
In the wake of the resignations of Simon Creddy Smith and James Wallace from the Cryptologic board following the company's acquisition by Amaya Gaming, NASDAQ has issued notification that the Company no longer complies with the American stock exchange's audit committee requirements and has 45 calendar days to submit a plan to regain compliance.
NASDAQ Listing Rule 5605(c)(2) requires that the audit committee be composed of at least three independent directors which, following Creddy Smith and Wallace's resignations, now only comprises of one.
The company may also have to tackle another compliance issue as NASDAQ requires the majority of the board directors to be independent, however, executive movements leave the company at present with two independent and two non-independent directors.
Amaya Gaming says it is reviewing its options with respect to regaining compliance.