Internet gaming software firm GAN announced it had raised £7.5 million for entry into a new U.S. Sports betting market in the wake of the U.S. Supreme Court decision overturning a federal ban on sports betting.
The developer and supplier of enterprise-level B2B internet gaming software, services and online gaming content in the U.S., said in a press release it had conditionally 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 will represent 17.6 percent of the enlarged issued share capital of the company. GAN had a market capitalization of some €55 million on the Irish Stock Exchange ahead of the transaction.
GAN said it would use the proceeds in several ways including “substantially” increasing its software engineering resources to serve existing major U.S. clients. The company also hopes to launch new U.S. clients and services.
The 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 at its office in Sofia, Bulgaria.
“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 U.S. States expected to regulate internet gambling in the near future,” said Dermot Smurfit, chief executive, in the release.
