GiG Issues New Shares, Expands Share Capital

Unlock Growth and Opportunities: GiG’s Strategic Expansion Through New Shares

Imagine a robust boost in a company’s financial architecture.

GiG has just issued over 2 million new shares, enhancing its capital structure significantly.

This strategic move supports key acquisitions and internal growth, paving the way for future expansions.

Explore how this development could influence the market and benefit stakeholders.

Gaming Innovation Group Inc. (GiG) has effectively increased its financial flexibility by issuing 2,176,941 new shares of common stock today. This significant increase has been conducted under the authorization of the company’s board, adhering to its limit of 150,000,000 authorized shares. The new shares have been fully paid and are confirmed to comply with all necessary corporate actions, thus enhancing the company’s share capital from USD 129,003,161 to USD 131,180,102. The total number of outstanding shares now mirrors the new share capital amount, maintaining a par value of USD 1.00 per share. Furthermore, the company reports that 1,432,500 options remain outstanding as of today.

The issuance of the new shares is strategically divided to support various organizational goals. Firstly, 823,897 new shares were issued in connection with the acquisition of KaFe Rocks Ltd., a move previously announced and part of a structured agreement where GiG committed to issuing EUR 2.5 million in shares. This issuance was contingent upon achieving specific operational cost savings by the end of 2023, which were successfully met, allowing the sellers to receive additional payment based on a 30-day VWAP of GiG shares at the time of closing (NOK 30.11).

Additionally, 982,694 new shares have been allocated to a key employee option program linked to the acquisition of Sportnco Gaming SAS (“Sportnco”). This program, detailed in the Exemption Document dated July 13, 2022, ensures that key Sportnco employees are granted shares at a set price of EUR 2.11 (NOK 24.80) per share, contingent upon their continued employment with GiG.

Lastly, the exercise of existing options resulted in 370,350 new shares being issued, with 319,000 of these shares priced at NOK 15.00 each, and 51,350 priced at NOK 22.00 each. This part of the share issuance supports internal employee incentives and promotes long-term commitment within the company’s workforce.

This targeted issuance of shares by GiG not only fortifies its financial base but also strategically supports ongoing and future business operations, including mergers and acquisitions. The successful integration of entities like KaFe Rocks and Sportnco underscores GiG’s commitment to expanding its influence in the gaming and betting industry, ensuring sustained growth and enhanced shareholder value.