GAN – the noted B2B software company serving the online gaming industry – has announced plans to buy back up to $5m of its ordinary shares that are listed on the NASDAQ Capital Market. The decision to do so was authorized by the company’s Board of Directors.
The buyback program will begin immediately and expire on May 31, 2022. During this time, the actual timing of the buyback will be left to the discretion of management and dependent on such factors as price for common shares, market economic conditions, factors subject to securities laws and exchange rules, as well as whatever investment opportunities might present themselves at any given time.
The company, based in Irvine, California, specializes in providing gaming software for internet gaming, online sports betting, and simulated games. It also provides services buttressing software used in the land-based casino context.
An excess of cash on hand will help fund the stock repurchase, which will be bought for the prevailing market price, though subject to limitations imposed by securities law. The shares repurchased will be returned to the treasury and cancelled.
Dermot Smurfit, CEO of GAN, explained the decision and why it came at this time: “We believe that the best use of our capital to drive long-term shareholder value is centered 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.
“However, we also recognize 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.”
