Supplier of technology solutions for the gaming industry Gaming Innovation Group (GiG) announced today it decided to issue a subordinated convertible loan to two Nordic investment funds.
Institutional Investors Happy to Invest
Looking to boost shareholder value coming into 2021 and to take advantage of business momentum generated by strong performance for the last year, GiG will raise €8.5 million by issuing subordinated convertible bonds to institutional investors Formue Nord A/S and Symmentry Invest A/S.
“We have been following GiG for a while and have been impressed by the progress in the business over the last year. We are happy that we are able to support GiG with a flexible finance solution that is setting GiG up for further growth in the years ahead.”Rasmus Viggers, CIO, Formue Nord A/S
The subordinated loan will run for 30 months and will pay 8% interest per annum, and can be converted into shares at a price of NOK15, representing a 23% premium to the last daily close on Oslo Børs. The new debt which will mature June 28, 2022 is subordinated to already existing SEK400 million bond, meaning no payments or repayments on the loan are allowed before any outstanding obligations on the bond remain.
Take Advantage of Strong Momentum
Speaking about the decision to issue the loan notes, GiG CEO Richard Brown explained that the technology supplier used the last 12 months to simplify its business and focus on the core B2B offering and managed to achieve growth in revenue and earnings before interest, tax, depreciation and amortization (EBITDA) for the first 9 months of 2020.
“As we are seeing continued expansion opportunities on all our 3 business segments we wanted to strengthen our cash position to be able to take advantage of those opportunities. We are happy that GiG is now in a place where we can attract capital from institutional investors on competitive terms to accelerate the business further.” Richard Brown, CEO, GiGRichard Brown, CEO, GiG
As the gambling industry moves towards regulation and digitalization globally, the needs of GiG’s target customers for robust technology solutions drive demand for the supplier’s products and services and create opportunities for further growth for the company, which will use the proceeds of the loan to fund such opportunities.
Operating within a pre-defined capital allocation framework, the newly raised capital will be directed towards further development of the omni-channel offering in casinos and sportsbooks, to boost the long term speed to market to improve the sales and adopt a more aggressive approach towards growth in Paid Media, as well as utilize on potential mergers and acquisitions (M&A) within the Media Publishing department.