Damian Mathews has resigned from his position as Chief Operating Officer and Chief Financial Officer of Esports Entertainment Group (EEG).
However, Mathews remains on the Esports Entertainment Group board as a director.
The operator noted that his departure was not due to disagreements with the company.
In his place, Michael Villani was named interim chief financial officer.
Villani joined Esports Entertainment Group in February 2021 as Financial Controller. He previously worked as a director in KPMG’s deal advisory department.
Villani will continue in his current role as financial controller and will also serve as the company’s chief financial officer.
He worked at KPMG for a total of 18 years in the areas of deal advisory and audit. He also previously served as CFO of a Geneva-based hedge fund.
Ongoing issues with Esports Entertainment Group
Mathews’ resignation follows the departure of former EEG CEO Grant Johnson at the end of 2022.
EEG has faced difficulties in recent years, including brand closures, a default and large operating losses. In May last year, EEG said in a quarterly financial report that there were “significant doubts” about its ability to remain in business for at least a year.
In December 2022, EEG avoided delisting but was ordered to dramatically increase its share price by February in order to remain listed on the Nasdaq exchange. Since that date, the operator’s share price has only continued to fall.
The company has previously announced its plans to scale back its iGaming business, including exploring a possible sale of iGaming assets. EEG confirmed back in December the closure of its Argyll igaming operation, which operates RedZone and SportNation, in the UK and Ireland due to high operating costs and an inability to generate profits.
Additionally, EEG had announced that the sale of its online casino business in Spain is expected to be completed by December 12, 2022. However, no recent update on this plan has been announced. The proceeds from the sale will be used primarily to repay the principal of a convertible senior note.
On January 3rd of this year, it was announced that Alex Igleman would take over as the company’s new CEO.