A non-compliance notice was handed down to NeoGames by NASDAQ, following the exit of the company’s chair of the Audit Committee and member of the Compensation Committee and Nominating and Corporate Governance Committee Lisbeth McNabb.
McNabb exiting – rather abruptly too – prompted the exchange to intervene and deemed the company non-compliant specifically because it lacked three members on its Audit Committee. McNabb himself left voluntarily and amicably, but NASDAQ still deemed it inappropriate.
The non-compliance notice though has not prompted any bigger change as the company had a grace period until October 18 to appoint a third member, which it now has. This is where Steve Capp has entered his role as an independent and non-executive director and the latest addition to the Audit Committee, and all other positions vacated by his predecessor.
Capp is also a heavyweight in the gambling industry, having served as chief financial officer at Bally’s Corporation in the past and holding the same role with Pinnacle Entertainment, two very well-established companies in the gaming space.
Compliance Restored as NeoGames Continues Business as Usual
Commenting on his appointment, NeoGames CEO Moti Malul said that the man makes a valuable addition to the board, adding:
Steve is a highly experienced executive who brings leadership, deep expertise, and professional experience to our board.
NeoGames CEO Moti Malul
His appointment does not happen in a vacuum either, as NeoGames has been actively looking or expand and strengthen its executive expertise. Previously, the company appointed Motti Gil who is going to replace Raviv Adler, the outgoing CFO, starting on July 31, 2023.
The restoration of a compliance status comes at an important time for the company as NeoGames is being acquired by Aristocrat, for a sum total of $1.20 billion. The plan is to see one of Aristocrat’s subsidiaries merge with NeoGames’ existing operations.