06/07/2002
New CEO for CryptoLogic Inc., Jean Noelting unexpectedly resigns
CryptoLogic Inc. CEO, Jean Noelting resigned two days ago, after 18 months within the position. The unexpected resignation, according to CryptoLogic, came out of agreement between Noelting and company's board of directors. The company announced his replacement, Lewis Rose - previously Alliance Atlantis Communications Inc. president and also president of Maple Leaf Foods Inc.'s grocery products division. "We expect to continue growing our business in Europe while also pursuing growth in the U.S.," he said and noted the company would not back down from doing business in the U.S.
While CEO, Noelting had to face several challenges. The company's share price had slid $17.20 or 61% since the start of the year. Shares in CryptoLogic fell 7% yesterday to close at $10.90. Brandon Osten, Sprott Securities analyst, says it was because of battles over U.S. regulatory issues and the inability of CryptoLogic to process credit card transactions in the U.S. Although many problems surrounded the company, most of them are general industry problems that are hard to avoid. CryptoLogic's new CEO has strong work experience, but he is about to face issues that are unique to the online gambling industry, said Osten and explained that while Rose has an excellent resume, it is to soon to estimate his abilities on the online gambling arena.
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