Gambling software provider GAN has set out plans for its initial public offering (IPO), through which it aims to raise up to $34.5m.
Pursuant to a registration statement filed with the Securities and Exchange Commission, GAN will place 4,055,000 ordinary shares at a price of between $6.50 and $8.50 per share.
GAN also said it expects to grant the underwriters a 30-day option to purchase up to an additional 608,250 ordinary shares at the IPO price, less underwriting discounts and commissions.
Should the IPO go ahead as planned, GAN would list its ordinary shares on the Nasdaq Capital Market under the symbol ‘GAN’, in line with plans announced in February.
Prior to the offering, the shares traded on the London Stock Exchange’s AIM market under the same symbol.
The provider said it would use proceeds from the IPO for working capital and general corporate purposes, including sales and marketing activities, product development and capital expenditures.
In connection to the IPO, GAN would affect a reorganisation and share exchange, in which GAN plc would become a subsidiary of GAN Limited.
Ordinary shares of GAN plc would no longer trade on the AIM, while former shareholders of GAN plc would receive one ordinary share of GAN Limited for every four ordinary shares of GAN plc and an aggregate of £2m in cash.
Riley FBR is to act as sole bookrunner for the IPO, while, Macquarie Capital, will serve as lead manager, and Craig-Hallum Capital Group as a co-manager.
The announcement comes after GAN last month reiterated its confidence in its 2020 forecast, which projected revenue of $37m-$39m, even as the novel coronavirus (Covid-19) affects its sports betting vertical.
This came alongside the developer’s 2019 results, which revealed a 114% year-on-year increase in revenue, to $30.0m for the year, as well as the signing up of Penn National Gaming and Michigan’s Sault Tribe of Chippewa Indians as its latest clients.