GAN mobilises £7.5m, targets growth in USA

The UK-based internet gaming software company GAN has mobilised funds worth £7.5 million (€8.6m) to scale newer heights in the USA, following the Supreme Court decision to remove the Federal Ban on sports betting.

GAN has already involved in the development and supply of enterprise-level B2B internet gaming software, services and online gaming content in the USA, announced that it has raised £7.5 million through an over-subscribed subscription of 15 million ordinary shares of £0.01 per share, at an issue price of £0.50 a share. The new shares are worth 17.6% of the enlarged issued share capital of the company. GAN had a market capitalisation of some €55 million on the Irish Stock Exchange ahead of the latest round of fundraising.

GAN said it will use the proceeds of the transaction for a number of investments, including “substantially” increasing its software engineering resources to serve existing major US clients’ services such as the WinStar.com Overseas Internet Casino. It also hopes to 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.

In addition, proceeds will be used to repay a £2 million convertible unsecured loan note in full, “in order to strengthen the company’s balance sheet.” The company also expects to increase software engineering resources in its office in Sofia, Bulgaria, where GAN has operated an engineering facility since 2016.

Dermot Smurfit, chief executive, said: “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.”

Source: irishtimes.com