GAN Limited has announced that it will buy back up to $5m of ordinary shares after receiving authorisation from its Board of Directors.
The program will begin immediately and last until 31 May 2022, during which time the company will pay the prevailing market price at the time of acquisition for any shares.
GAN stressed that the authorisation does not oblige it to acquire any particular number of shares, and stated that the actual timing and manner of the buyback will be determined by management at its discretion and is subject to further discussions with the Board.
Several external factors will also play a role, including the market price of GAN’s common shares, general economic conditions, alternative investment opportunities and other business considerations in accordance with applicable securities laws and exchange rules.
The Nasdaq-listed company will use cash on hand and from its operations to fund the repurchase program.
“We continue to believe that the best use of our capital to drive long-term shareholder value is centred around our strategic growth initiatives such as investing in our technology, supporting client launches and building out our Super RGS content portfolio and omnichannel GAN Sports platform,” said GAN Chief Exec Dermot Smurfit.
“However, we also recognise the value opportunity that has developed in our stock and want to be prepared to act opportunistically during periods when the share price becomes significantly dissociated from our future earnings potential. Today’s announcement provides us with an effective tool to do exactly that, support our stockholders and drive long-term balanced returns.”