[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Interactive

US – GAN to strengthen in the US with equity subscription of £7.5m to investors

By - 22 May 2018

Simulated gaming pioneer GAN has conditionally raised £7,500,000 through an over-subscribed subscription of 15,000,000 new ordinary shares of £0.01 each per share at an issue price of 50p per Ordinary Share by US institutional shareholders.

The subscription shares will represent 17.6 per cent. (approximately) of the enlarged issued share capital of GAN.

The company plans to use the net proceeds of the Subscription to substantially increase GAN’s software engineering resources to better serve existing major US clients’ services such as the WinStar Overseas Internet Casino, launch new US clients and new services in the US in anticipation of internet sports betting following the US Supreme Court’s decision to lift the Federal Ban on sports betting delivered on 14 May 2018.

Proceeds from the subscription will also be used to repay in full the £2,001,483 9% Convertible Unsecured Loan Notes 2022 issued by GAN in April 2017, in order to strengthen the company’s balance sheet, it thereby being debt-free and capitalized to levels the Directors of GAN believe are reasonably required to serve major multi-property and multi-State casino groups in the US. Increases in software engineering resources will also take place substantially in GAN’s existing offices in Sofia, Bulgaria where GAN has operated an engineering facility since 2016.

Dermot Smurfit, CEO of GAN commented: “This strategic capital raising exercise positions GAN to consolidate its US market position and capture substantial incremental revenue opportunities available resulting from both Internet gaming and sports betting regulation in New Jersey, Pennsylvania and other US States expected to regulate Internet gambling in the near future.”

Share via
Copy link