GAN proposes £7.5m equity subscription in US

21 May 2018

GAN has today (Monday) announced details of a proposed equity subscription of £7.5m (€8.6m/$10.1m) as it seeks to bolster its position in the US.

The company plans to use the proceeds to strengthen its software engineering resources in order to better serve existing customers in the country.

GAN currently works with a number of US-based clients such as WinStar.com, and the company expects its customer base to expand with the recent Supreme Court ruling regarding legalised sports betting.

Increases in engineering resources will also take place in Bulgaria, where GAN has been operating a facility since 2016.

Aside from this, GAN intends to commit part of the funds to repay in full the £2m 9% convertible unsecured loan notes issued in April 2017.

The subscription is subject to approval by shareholders and upon admission of subscription shares to trading on AIM and the ESM.

Dermot Smurfit, chief executive of GAN, 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.”

Related article: GAN extends with Paddy Power Betfair in New Jersey