GAN secures $30m loan as it eyes further B2B and B2C investment

GAN has successfully taken out a $30m loan with Beach Point Capital as it looks to invest into both its B2B and B2C arms.

GAN said the new capital would be used to fund “existing high-return B2B investments and future opportunistic investments”.

The loan is repayable over four-and-a-half years and holds a yearly interest rate of 9.5%

The firm also said it was “poised for near-term opportunistic implementation” of a previously announced $5m share repurchase scheme.

Elsewhere, GAN also confirmed it B2C brand, Coolbet, had improved its sports margin during Q1 2022 and was now in a “historically normalized range” of around 7%.

GAN said these three measures reflected the firm’s “commitment to driving growth, improving profitability, and maintaining a well-capitalized balance sheet”.

Karen Flores, GAN chief financial officer, said: “Today’s announcement ensures that we have the capital available to drive improved shareholder returns going forward.

“The incremental flexibility provided by the term loan allows us to execute our balanced capital allocation plan centered 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 we have 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,” she added.