3rd Mar 2020 18:44
(Alliance News) - GAN PLC said Tuesday it has started the process of changing its corporate structure, forming a Bermuda-based parent to oversee its listing in the US.
Shares in the internet gambling software firm closed 15% higher in London on Tuesday at 165.00 pence each.
GAN will establish GAN Bermuda, a new Bermuda-based incorporated-parent company, which will be listed in the US.
The company is offering 1 Nasdaq share for every 4 shares in GAN PLC, which will allow it to meet Nasdaq listing requirements, and 2.32 pence per share.
GAN Bermuda will own the entire share capital of GAN UK - currently GAN PLC - and shareholders in GAN UK will become shareholders in GAN Bermuda.
After the formation of GAN Bermuda, the company said it still expects its shares in GAN UK to continue trading "until a date to be determined".
GAN has already submitted a draft registration statement for a proposed US public listing.
The draft was submitted in January to the US Securities & Exchange Commission, with the public listing expected once the SEC review is completed, though this is "subject to market and other conditions".
This followed GAN's announcement that it intended to start trading on Nasdaq as a foreign investor "as soon as reasonably practicable". This was revealed along with the knowledge that GAN expects full-year revenue to double amid rising demand in New Jersey and Pennsylvania following the start of the NFL season in the US.
Trading in 2019 was ahead of market expectations, GAN said, with revenue expected to more than double from GBP10.9 million in 2018. The earnings before interest, tax, depreciation and amortisation margin is expected to improve to between 30% and 35% compared with a negative 14% in 2018.
By Paul McGowan; [email protected]
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