Golden Matrix amends agreement, reshapes board structure

Golden Matrix Group, Inc. (NASDAQ:GMGI), a Nevada-based software services company currently trading at $1.90 near its 52-week low and down 21.77% over the past year, has entered into an Amended and Restated Nominating and Voting Agreement on January 29, 2025, with significant implications for its board structure and shareholder rights. This move follows the initial agreement made on April 1, 2024, after the acquisition of the Meridian Bet Group. According to InvestingPro, the company maintains a modest market capitalization of $250.73 million, suggesting room for potential growth.

The new agreement, effective immediately, allows for a board of up to six members, with two appointed by the Sellers as holders of the Series C Preferred Stock and four by the company’s Nominating and Corporate Governance Committee. This change comes ahead of Weiting (Cathy) Feng’s resignation from the board, which will take effect by July 25, 2025, or upon the appointment of a new Chief Financial Officer, whichever comes first. Feng will continue as Chief Operating Officer post-resignation.

In addition to board composition changes, the agreement sets conditions for voting and transferring shares, aiming to maintain a stable governance structure. Sellers, until April 9, 2026, or until certain termination conditions are met, must vote "For" committee-nominated directors and cannot vote to remove any directors unless for cause or under fiduciary duties. The agreement also restricts the Sellers from transferring shares without the transferee agreeing to the terms of the Voting Agreement.

In a related development, Snežana Božović, one of the Sellers, was appointed to the board effective January 29, 2025. Božović, who is not considered independent per NASDAQ rules, has a longstanding relationship with the Meridian Bet Group, serving in various executive roles. There are no anticipated committee appointments or separate compensation for Božović, aside from her existing role within the group.

The company also amended its bylaws to reflect the new board size and to correct an inconsistency regarding the removal of directors, now requiring a two-thirds shareholder vote instead of a simple majority. This amendment aligns with Nevada statutes and will likely revert to a five-member board following Feng’s departure. InvestingPro analysis reveals a concerning overall financial health score of 1.7, labeled as ’WEAK’, though the company maintains an attractive P/E ratio of 5.1. For deeper insights into GMGI’s financial health and additional exclusive analysis, upgrade to InvestingPro to access more than 30 key metrics and expert recommendations.

This information is based on a press release statement and aims to provide shareholders with a clear understanding of the recent changes and their implications for Golden Matrix’s governance and shareholder rights.

In other recent news, Golden Matrix Group, Inc. has made several significant strides. The company reported a 61% rise in year-over-year revenue for fiscal year 2024, reaching $150 million. Furthermore, Golden Matrix achieved record-breaking Q3 2024 revenue of $41 million, marking an 85% increase compared to the same period last year.

In a strategic move, Golden Matrix has initiated the process for a B2B Gaming License registration in Ontario, Canada. Additionally, the company has entered an equity distribution agreement with Craig-Hallum Capital Group LLC, potentially selling up to $20 million of its common stock.

Golden Matrix has also approved new compensatory arrangements for its top executives and board members, tying their compensation to performance metrics. Analysts from InvestingPro are closely following these developments.

The company has also amended its agreement with Lind Global Asset Management VIII LLC, modifying the terms of a $12 million secured convertible promissory note. These are the most recent developments in the company’s operations.

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