Gaming Innovation Group’s successful share issue as key executives increase stakes

Lea Hogg June 6, 2024

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Gaming Innovation Group’s successful share issue as key executives increase stakes

The Gaming Innovation Group (GiG), a prominent player in the gaming industry, recently completed a successful share issue, raising approximately SEK100 million (€8.8 million). This strategic move involved the issuance of 3.2 million new shares to a group of long-term institutional investors, marking a significant milestone in the company’s growth trajectory.

Among the participants in the directed share issue were GiG Media CEO Jonas Warrer and GiG Platform & Sportsbook CEO Richard Carter. Their involvement underscores the alignment between the company’s leadership and its shareholders. Other notable investors included Agerskov Kapital, Knutsson Holding, Prioritet Finans, and the Juroszek family, further diversifying GiG’s shareholder base.

The rationale behind the share issue was multifaceted. Primarily, GiG sought to attract high-quality investors to broaden its shareholder base. Additionally, the company aimed to secure additional working capital for the Platform & Sportsbook business in anticipation of the planned company split in Q3 2024. The funds will also be used for general corporate purposes.

The subscription price for the shares was set at SEK31 per share, following arm’s length negotiations. This price represents a 1.3 percent discount compared to the closing price of the company’s shares on Nasdaq Stockholm on June 4, 2024, and is equal to the average volume-weighted price of GiG’s shares on Nasdaq Stockholm over the past 10 trading days.

The registration of the share issue resulted in a total of 134,406,520 shares in the company, leading to a 2.4 percent dilution. However, the increased stake of key executives and the influx of new external parties interested in GiG’s shares indicate a strong belief in the company’s growth potential.

Stakeholder confidence soars

GiG chairman Mikael Riese Harstad expressed his delight at the interest shown by well-renowned investors and key executives in increasing their shareholding in GiG. He emphasized that the company is now better equipped to accelerate its growth both organically and through strategic acquisitions.

The share issue also saw key executives making considerable personal investments. GiG Media CEO Warrer, through his company Jonas Warrer Petersen Holding ApS, purchased 18,338 shares for a total of SEK568,478 (€50,178). Warrer now holds 60,000 options and 724,868 shares in GiG. Similarly, Carter purchased 366,774 new shares for a total of SEK11.4m (€1m), bringing his total shareholding in GiG to 566,774 shares.

The Juroszek family, associated with GiG board member Mateusz Juroszek, also increased its stake in the business. Companies affiliated with Mateusz Juroszek purchased a total of 365,001 shares in the firm. Following this transaction, Mateusz Juroszek’s close associates now own 15,170,122 shares in GiG.

In a similar vein, companies related to GiG Platform & Sportsbook board member Tomasz Juroszek participated in the share issue, acquiring 225,000 shares in total. After this transaction, Tomasz Juroszek’s close associates now own 9,367,642 shares in GiG.

The successful share issue and the increased stake of key executives and institutional investors signal a strong vote of confidence in GiG’s strategic direction and future growth prospects. As of now, Gaming Innovation Group Inc. (GIGSEK.ST) is trading at SEK31.70 (0.96 percent).