Management Shakeup at Youbet.com
Updated: Friday, March 15, 2002 3:52 PM
Posted: Thursday, March 14, 2002 1:32 PM
Youbet.com is undergoing a shakeup of its top management. The California online pari-mutuel wagering service for the horse racing industry, announced Thursday that it accepted a proposal from David Marshall, co-founder of the company, who will invest $750,000 into the company and assume the roles of chairman and chief executive officer.
Current chairman and former CEO Robert Fell and board members Caesar Kimmel and William Roedy have agreed to resign from the board. In addition, Ron Luniewski has resigned from his position as co-CEO and director and announced he intends to leave the company when his contract expires April 30.
Phillip Hermann, who shares CEO duties with Luniewski, will become Youbet.comês president and remain chief financial officer.
Marshallês involves the issuance of notes to the company for a term of 12 months at an interest rate of 12% per annum secured by Youbet.comês assets. He will also receive five-year warrants to purchase 750,000 shares of the Company's Common Stock at an exercise price of $.50 per share.
The transaction is expected to close and the management changes are expected to occur within the next 10 days.
Last week, Youbet.com (Nasdaq:UBET) received notice from the Nasdaq Stock market that it isn't in compliance with the $1 a share minimum bid price standard. The company may apply to transfer its stock to the Nasdaq SmallCap Market if it does not come into compliance by May 15.
Youbet.com closed Wednesday at 63 cents, up 1 cent, or 1.6%. As of 2 p.m. Thursday, the stock rose a modest 5 cents to 68 cents per share.
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