GAN to raise ?3m to fund US expansion
Supplier reports 22% drop in FY15 net revenues to ?5.9m
GAN will raise ?3m through the issue of new shares to fund its expansion into the US after revealing a 22% drop in full-year revenues.
The firm, formerly known as GameAccount Network, said the shares would be available to new and existing investors at a price of 28p each.
The Gaming Capital Group has agreed to invest ?0.66m with existing shareholders Michael Smurfit and Tony Smurfit investing ?1.2m and ?0.2m respectively.
GAN chief exec Dermot Smurfit and four other directors have also indicated they will snap up ?0.58m worth of new shares.
The news comes after GAN reported a 22% drop in FY15 net revenues to ?5.9m with clean EBITDA falling to a loss of ?3m, more than double the ?1.4m loss it made last year.
The London-based supplier said net revenues from its simulated gaming platform increased 377% YoY due to launching with five additional casino operators during the period.
Recurring net revenues from regulated gaming continued to grow in New Jersey – where it powers the BetfairCasino.com site – and Italy, offset by declines in other European markets.
GAN said its simulated gaming platform was generating average revenues per daily active user in excess of $2, which it believes is “substantially ahead” social casino metrics.
Last month EGR revealed that GAN would be replacing bwin.party as the Borgata’s online casino platform provider in New Jersey, a major win for the supplier.