GiG to convert €8.5m convertible loan and issue 6.6m shares to investors
Malta-based igaming supplier’s share capital to rise to $96.7m as part of the deal
Gaming Innovation Group (GiG) has agreed to convert an €8.5m convertible loan arranged in December in a financing move to lower the supplier’s leverage ratio and increase equity.
GiG will now issue 6.6m shares to lender Symmetry Invest that covers the outstanding loan, accrued interest and a termination fee for the early closure of the loan agreement.
The new shares are expected to be issued by 31 May, subject to a portioned lock-up.
As a result, GiG’s share capital will rise from $90.1m to $96.7m, while the number of outstanding shares increased by the same amount, as the par value or face value per share will be $1.
GiG CEO Richard Brown said: “I am very pleased to see the performance of the company be reflected in the two lenders appetite to convert the loan after only five months, I am happy to have strong and supportive shareholders going forward.”
Symmetry Invest will now become one of GiG’s largest shareholders and has signalled its belief in the company with a 12-month lock-up agreement over the converted shares.
Symmetry Invest CEO Andreas Aaen said: “We are full of admiration for the progress GiG have made over the past 18 months and with this conversion Symmetry will become one of the largest shareholders in GiG.
“We feel strongly about the future of GiG and as a vote of confidence have chosen to sign a 12-month lockup agreement for our converted shares.”
Earlier this month, GiG reported Q1 revenue growth of 64% to €18.3m.