LONDON (Alliance News) - GAN PLC said on Monday it intends to raise GBP7.5 million through a subscription of 15.0 million shares at a price of 50 pence per share.
Shares in the US-focused gambling software firm were up 7.6% at 71.00 pence on Monday.
Proceeds will go towards increasing GAN's software engineering resources to better serve US clients such as the WinStar.com internet casino. It also will be used to launch new clients and 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.
Proceeds also will go towards repaying the GBP1.0 million 9.0% convertible loan notes due 2022.
The new shares issued will represent 18% of GAN's enlarged issued share capital, and the subscription itself is subject to shareholder approval.
"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," said Chief Executive Officer Dermot Smurfit.
GAN will have 85.1 million shares issued overall following the subscription.
