Yet Another Resignation At Dynasty Gaming
Albert Barbusci, Dynasty Gaming’s CEO, said of the latest resignation, "Robert's decision to resign is the result of the recent death of his father, Robert Nihon Sr., and the urgent need to assume a leadership role in his family's business.” However, sources close to the company have told Gaming Intelligence Group that Mr. Nihon’s departure is more likely linked to the ongoing turmoil at the company, which many criticise as lacking a clear business model, whilst questioning Mr. Barbusci’s management style.
Since the beginning of this year, Dynasty has announced partnerships and LOI’s with some of the leading names in China, the company’s sole market. In 2007, Dynasty Gaming has signed deals with Sohu which has more than 100 million registered users from Canadian Jackpot City Casino ; Sino Strategic international which operates 500 retail outlets in Shanghai, gaming developer Las Vegas From Home, MahjongClub.com, NextMart, Evolution Gaming Ltd, and Shanda Interactive Entertainment. Despite the constant stream of press releases however, the company’s share price has plummeted to CAD$0.19 from a high of $1.10, and this has investors worried. At the company’s Investor Relations hub, shareholders attempt to answer each others concerns in the absence of what they call ‘any clear communication from the company’.
One investor summed up his understanding of the situation, saying “Dynasty created working Mahjong software which was approved in China through a licence granted to 95joy, a Dynasty partner. Sohu was set to market the product and a major tournament was planned. All was good.”
“Then Dynasty decided it did not want to be a software company, which led to the resignation of its CIO. Dynasty did nothing with its licence to market in China and the tournament was cancelled. Today we have no software, no revenue, possibly no licence in China, and following the departure of the CFO, little gaming experience within management.”
Another investor described the lack of information given to shareholders as “completely unacceptable,” adding, “This silent style of management is an insult to all of us.” Having failed to receive satisfactory answers to questions surrounding the company’s share price, lack of revenue and management resignations, shareholders of Dynasty Gaming are now looking towards the investor conference call of Shanda Interactive next week, in which they hope to quiz the company about the status of their agreement with Dynasty.
