GAN raises £7.5m to target US internet sports betting
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.com 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 May 14, 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.
The Subscription is conditional upon the receipt of approval by shareholders in General Meeting (“GM”) and upon admission of the Subscription Shares to trading on AIM and the ESM. Notice convening the GM containing full details of the Subscription and all applicable time periods will be sent to Shareholders and announced as soon as is practicable following this announcement.
The Subscription Shares will rank pari passu with the existing Ordinary Shares and, subject to the receipt of shareholder approval at the GM, application will be made to the London Stock Exchange and the Irish Stock Exchange, trading as Euronext Dublin, for the Subscription Shares to be admitted to trading on AIM and the ESM respectively. Upon completion of the Subscription, GAN’s enlarged issued share capital will consist of 85,051,924 Ordinary Shares.
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.”