GAN to raise $4.3m to fund US expansion
Supplier reports 22% drop in FY15 net revenues to $8.4m
GAN will raise £3m ($4.3m) through the issue of new shares to fund its expansion into the US after revealing a 22% drop in full-year revenues. [private]
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 ($0.94m) with existing shareholders Michael Smurfit and Tony Smurfit investing £1.2m ($1.7m) and £0.2m ($0.29m) respectively.
GAN chief exec Dermot Smurfit and four other directors have also indicated they will snap up £0.58m ($0.83m) worth of new shares.
The news comes after GAN reported a 22% drop in FY15 net revenues to £5.9m ($8.4m) with clean EBITDA falling to a loss of £3m ($4.3m), more than double the £1.4m ($2m) 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 â where it powers the BetfairCasino.com site â 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 âsubstantially aheadâ social casino metrics.
Last month EGR NA revealed that GAN would be replacing bwin.party as the Borgataâs online casino platform provider in New Jersey, a major win for the supplier.