GAN Provides Strategic Update and Announces Successful Completion of $30 Million Term Loan
April 28, 2022 08:30 AM Eastern Daylight Time
IRVINE, Calif.--(BUSINESS WIRE)--GAN Limited (the "Company" or "GAN") (NASDAQ: GAN), a leading North American B2B technology provider of real money internet gaming solutions and a leading International B2C operator of Internet sports betting, today provided an update on several strategic initiatives.
Strategic Update:
Successful completion of a $30 million term loan with Beach Point Capital.
Poised for near-term opportunistic implementation of the Company’s previously announced $5 million share repurchase authorization following public disclosure of first quarter results.
Recently began implementation of cost controls along with other strategic initiatives that are expected to accelerate Adjusted EBITDA generation and improve profitability.
Announced that Coolbet’s hold, or sports margin, for the first quarter improved sequentially and was within the historically normalized range of approximately 7%.
These actions reflect the Company’s commitment to driving growth, improving profitability, and maintaining a well-capitalized balance sheet. This new capital will be focused on funding existing high-return B2B investments and future opportunistic investments, including opportunistic execution of the previously announced $5 million share repurchase authorization following public disclosure of first quarter results.
Karen Flores, Chief Financial Officer of GAN, commented:
“Today’s announcement ensures that we have the capital available to drive improved shareholder returns going forward. The incremental flexibility provided by the term loan allows us to execute our balanced capital allocation plan centered around investing in our B2B offering, growing Coolbet and our B2C presence, and returning capital to shareholders during a time when we believe our share price undervalues the long-term opportunities we have ahead of us. We are simultaneously taking steps to accelerate our path to improved Adjusted EBITDA generation and profitability as we are acutely focused on our margin profile and efficiency measures.”
Details of the Transaction
The Credit Agreement provides for up to $30.0 million in aggregate principal amount of secured term loans which accrue interest at a floating rate equal to (i) 3-month SOFR (subject to a 1.00% floor) plus (ii) 9.5% per annum, payable quarterly in arrears. The secured loans mature four and one-half years following the closing date, or October 26, 2026.
The Company plans to provide further details when it reports its first quarter results for the quarter ended March 31, 2022, after market close on Monday, May 16, 2022.
IRVINE, Calif.--(BUSINESS WIRE)--GAN Limited (the "Company" or "GAN") (NASDAQ: GAN), a leading North American B2B technology provider of real money internet gaming solutions and a leading International B2C operator of Internet sports betting, today provided an update on several strategic initiatives.
Strategic Update:
Successful completion of a $30 million term loan with Beach Point Capital.
Poised for near-term opportunistic implementation of the Company’s previously announced $5 million share repurchase authorization following public disclosure of first quarter results.
Recently began implementation of cost controls along with other strategic initiatives that are expected to accelerate Adjusted EBITDA generation and improve profitability.
Announced that Coolbet’s hold, or sports margin, for the first quarter improved sequentially and was within the historically normalized range of approximately 7%.
These actions reflect the Company’s commitment to driving growth, improving profitability, and maintaining a well-capitalized balance sheet. This new capital will be focused on funding existing high-return B2B investments and future opportunistic investments, including opportunistic execution of the previously announced $5 million share repurchase authorization following public disclosure of first quarter results.
Karen Flores, Chief Financial Officer of GAN, commented:
“Today’s announcement ensures that we have the capital available to drive improved shareholder returns going forward. The incremental flexibility provided by the term loan allows us to execute our balanced capital allocation plan centered around investing in our B2B offering, growing Coolbet and our B2C presence, and returning capital to shareholders during a time when we believe our share price undervalues the long-term opportunities we have ahead of us. We are simultaneously taking steps to accelerate our path to improved Adjusted EBITDA generation and profitability as we are acutely focused on our margin profile and efficiency measures.”
Details of the Transaction
The Credit Agreement provides for up to $30.0 million in aggregate principal amount of secured term loans which accrue interest at a floating rate equal to (i) 3-month SOFR (subject to a 1.00% floor) plus (ii) 9.5% per annum, payable quarterly in arrears. The secured loans mature four and one-half years following the closing date, or October 26, 2026.
The Company plans to provide further details when it reports its first quarter results for the quarter ended March 31, 2022, after market close on Monday, May 16, 2022.
