Canadian based Amaya Inc, the parent company of PokerStars and Full Tilt Poker recently released its first quarter results for this year and revealed a six percent increase in gross revenue climbing from $272.3 million in 2015 to $288.7 million in 2016. The company stated that if it wasn’t for the fluctuations in foreign exchange Amaya would have had a 13.9 percent growth.
Amaya Inc has gone through a tough first quarter after the Autorité des marchés financiers, which is Quebec’s security regulator filed insider trading charges against its CEO David Baazov and other key members of the company. Baazov decided to step down from his role as CEO in order to clear his name and his legal team have denied all charges in a counter filing.
Amaya’s board has stood by Baazov and stated that there is no clear evidence implicating Baazov with insider trading. The board appointed Rafi Ashkenazi as interim CEO and Dave Gadhia as interim chairman while Baazov and his legal team look to clear up all insider trader allegations.
However it has now been confirmed that neither Baazov nor Daniel Sebag who is the chief financial officer will not be standing for re-election to the board of directors during the next annual shareholders meeting. The financial report stated that the board was on the looking to find new directors who will have capabilities that will complement the skill-set of the board’s existing directors.
In a statement, Ashkenazi, the interim CEO said “Amaya remains focused. During the first quarter, we continued to execute on our growth plans despite unexpected challenges, including management changes and the ongoing strategic alternatives process. We attracted new customers to PokerStars, continued to introduce changes to improve the overall poker experience, expanded our online casino offering and continued to invest in our emerging online sportsbook.”
Before the insider trading allegations broke against Baazov and other senior Amaya Inc executives, Baazov had announced that he had plans to take Amaya Inc private and was considering an all cash offer. The board stated that they had not received an official proposal from Baazov but put together a special committee to consider the proposal, should one be made.
There is no indication if Baazov will now proceed with his all cash takeover of Amaya Inc. The board confirmed that the special committee will continue to look at the insider trading allegations.