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LAS VEGAS - GAN Limited (NASDAQ: GAN), a prominent provider of B2B internet gaming solutions in North America and B2C sports betting internationally, has announced an amendment to its merger agreement with a subsidiary of SEGA SAMMY CREATION INC., part of SEGA SAMMY HOLDINGS. The amendment pushes the merger completion deadline from today to May 31, 2025. According to InvestingPro data, GAN’s current market capitalization stands at approximately $80 million, with the stock currently trading at $1.75, below the proposed merger price.
The extension was agreed upon to allow for additional time to secure necessary regulatory gaming authority approvals. The closing conditions of the merger remain unchanged, and the transaction is now anticipated to finalize in the second quarter of 2025. InvestingPro analysis suggests the stock is currently in oversold territory, with several additional insights available to subscribers.
Seamus McGill, CEO of GAN, commented on the progress of the merger, noting that both parties are actively responding to regulatory requests and are working collaboratively towards a successful closure.
Upon completion of the merger, GAN ordinary shares will be automatically canceled and converted into a cash entitlement of $1.97 per share, without interest and subject to applicable taxes. Following the merger, GAN will become a private entity, with its shares delisted from The Nasdaq Capital Market and deregistered under the Securities Exchange Act of 1934.
GAN specializes in providing SaaS solutions for internet gaming to the U.S. casino industry and operates Coolbet, a leading online sports betting platform. The company’s proprietary software, GameSTACK™, offers a comprehensive solution for regulated real money internet gaming, sports gaming, and virtual simulated gaming. Financial data from InvestingPro shows the company generates annual revenue of $134 million with an impressive gross profit margin of 71%, demonstrating strong operational efficiency despite current market challenges.
SEGA SAMMY HOLDINGS, the parent company of SEGA SAMMY CREATION, oversees a diverse group of companies in the entertainment content, Pachislot and Pachinko machine, and integrated resort and casino gaming product development sectors.
The information regarding the merger extension is based on a press release statement.
In other recent news, GAN Ltd, a Bermuda-incorporated company, is facing potential delisting from The Nasdaq Stock Market due to non-compliance with Nasdaq’s listing rules. The company failed to hold an annual meeting of shareholders within the stipulated timeframe, a requirement under Nasdaq’s listing rules. In response, GAN Ltd is required to submit a plan within 45 days to regain compliance. If accepted, the company could be granted an extension until June 30, 2025, to meet the listing requirements.
This development comes after a delay in GAN Ltd’s annual shareholder meeting, which was postponed due to the anticipated finalization of a merger with Arc Bermuda Limited, a subsidiary of SEGA SAMMY CREATION INC. The merger has received approval from GAN shareholders, clearance from the Committee on Foreign Investment in the United States (CFIUS), and necessary approvals from several gaming regulatory agencies.
However, GAN Ltd’s forward-looking statements caution that there is no assurance that Nasdaq will accept its compliance plan or that the company will be able to regain compliance within the potential extension period. Additionally, there is no guarantee that Nasdaq will provide relief from delisting if needed or that the company will eventually satisfy Nasdaq’s continued listing standards. These are recent developments concerning GAN Ltd’s status on the Nasdaq Stock Market.
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