The technology provider, which has traditionally focused on the B2B market, also has a B2C offering through Coolbet, a sports and esports betting operator.
The $30m loan, which has been financed by Beach Point Capital, is to be repaid over a four-and-a-half-year period, with a minimum annual interest rate of 9.5%.
In the short term, $5m of this will be used to repurchase shares from investors, after the company has fully disclosed its Q1 financial results. As part of its initial statement, GAN announced Coolbet’s hold improved throughout Q1, averaging 7%.
GAN will also look to implement cost-cutting measures across its operations to improve EBITDA metrics going forward.
GAN CFO Karen Flores commented: “Today’s announcement ensures we have the capital available to drive improved shareholder returns going forward. The incremental flexibility provided by the loan allows us to execute our balanced capital allocation plan centred around investing in our B2B offering, growing Coolbet and our B2C presence and returning capital to shareholders during a time when we believe our share price undervalues the long-term opportunities ahead of us.
“We are simultaneously taking steps to accelerate our path to improved Adjusted EBITDA generation and profitability, as we are acutely focused on our margin profile and efficiency measures.”
The majority of GAN’s business comes through its B2B operation, licensing its GameStack turnkey technology to partner operators, across sports betting and iGaming sectors.
GAN’s partners include FanDuel, Betfair, William Hill and Wynn Resorts.
