Result of General Meeting
London & Dublin | June 7, 2018: GAN plc ("GAN" or the "Company"), an award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, advises that all resolutions notified to shareholders on May 22, 2018 and proposed at the General Meeting of the Company held today, June 7, 2018, were duly passed and, accordingly, shareholders have approved the subscription by new investors for 15,000,000 new shares in the capital of the Company. The subscription has raised gross proceeds of £7.5m for the Company.
The Company plans to use the net proceeds of the Subscription to substantially increase GAN's software engineering and operational 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.
Application has been made to the London Stock Exchange and Euronext Dublin for the Subscription Shares to be admitted to trading on AIM and the ESM, respectively. Admission of the Subscription Shares will become effective and dealings will commence in the Subscription Shares at 8.00 a.m. on June 8, 2018. The enlarged issued share capital of the Company on Admission is 85,051,924.
Management Commentary
Dermot Smurfit, CEO of GAN commented:
"This strategic capital raising exercise, completed today, 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."
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.
Capitalised terms used, but not defined in this announcement, have the same meanings as set out in the Circular.
The Company plans to use the net proceeds of the Subscription to substantially increase GAN's software engineering and operational 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.
Application has been made to the London Stock Exchange and Euronext Dublin for the Subscription Shares to be admitted to trading on AIM and the ESM, respectively. Admission of the Subscription Shares will become effective and dealings will commence in the Subscription Shares at 8.00 a.m. on June 8, 2018. The enlarged issued share capital of the Company on Admission is 85,051,924.
Management Commentary
Dermot Smurfit, CEO of GAN commented:
"This strategic capital raising exercise, completed today, 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."
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.
Capitalised terms used, but not defined in this announcement, have the same meanings as set out in the Circular.
