Troubled lottery broker and information portal Lottery.com has stated in an US Securities and Exchange Commission (SEC) filing that on 8 September it had appointed two new directors and a new CEO.
The filing followed a warning by the Nasdaq stock exchange that it must fill the seats by a 5 October deadline in accordance with the exchange’s rules and regulations. The newly appointed include Sohail S. Quraeshi as CEO as well as Vladimir Klechtchev and Amer Rustom as new outside directors. Alongside remaining director Richard Kivel, who will continue as chairman of the board, therefore fulfilling the Nasdaq’s requirements that the company has at least three members of the board.
Quraeshi started his career as a securities analyst, and has worked in banking institutions in the US, Europe, Asia and the Middle East. Currently he is the founder of contact tracing and digital asset management company TSS Vertical and managing director of Singapore-based asset management business Vahoca Pt.
Klechtchev is a Fellow Chartered Accountant with experience in audit, investment banking, risk management, compliance, fraud investigations, project evaluation, consultancy and business advisory services. Rustom co-founded the Platinum group and has ties with many Middle Eastern and North African prominent officials and leaders.
Lottery.com has been ridden by turmoil the last months, marred by financial irregularities, a board that was in open civil war and multiple class-action lawsuits.
In July, the company revealed that it had “overstated” its cash balance by $30m, leading to the company terminating the employment of its president, treasurer and chief financial officer Ryan Dickinson. CEO Lawrence DiMatteo resigned later in month, though opted to remain on the board. This was followed days later on an SEC filing that the business owed $425,000 in outstanding payroll obligations, leading to questions whether it was possible for the company to continue as a going concern.
“Since the company’s business is dependent on the efforts and talents of its employees, particularly its developers and engineers, and the provision of ongoing services to customers by its employees,” said Lottery.com in the filing.
“A material loss of its employee base may result in the inability of the company to operate its technology, meet its obligations to customers, the loss of key customer relationships and revenue and claims for breach of contractual obligations.”
Shortly after this, the business was threatened with delisting by the Nasdaq stock exchange over the business’s late filing of its quarterly report.
With the business facing existential questions, the troubles came to a head in September, when an outside investor known as Woodford Eurasia Assets provided the business with a $50m loan. Two board member resigned in protest, stating in their resignation letters that the company had “thwarted” attempts to look into “red flags” raised by the new investor. Board members Lisa Borders and William C Thompson Jr condemned the “potentially inappropriate activity” that had occurred within the company.
