Vegas slot maker moves to comply with Nasdaq rules

Monday, Sept. 9, 2002 | 11:19 a.m.

Slot machine maker Innovative Gaming Corp. of America has been notified by Nasdaq that the company failed to maintain a sufficient number of independent directors on its board of directors.

Nasdaq rules require the company to have an audit committee composed of at least three independent directors. Only one of the company's two committee members is now independent.

The company has appointed Ronald Eibensteiner and Kevin Malley to its board of directors to come into compliance with the Nasdaq rules.

Eibensteiner, chair of the Republican Party of Minnesota, sits on the boards of various medical and software technology firms and co-founded Diametrics Medical Inc. and OnHealth Network Co.

Malley, an accountant who opened and managed the Las Vegas branch of KPMG, has served as president and chief executive of the Desert Inn hotel-casino in Las Vegas and as executive vice president of Caesars Palace.

Edward Harris has also joined the company as chief operating officer and has been appointed to its board of directors. Harris has served as president of Applied Computer Service Inc., a systems developer for aerospace and banking industries, and was a system analyst for naval weapons and aerospace company Aerojet General.

The company has requested a hearing with Nasdaq to attempt to keep its stock listed on the exchange. Nasdaq requires companies to maintain their stock prices above $1 per share for a consistent period. Innovative Gaming now trades below 20 cents.