Zappia, who is a shareholder, is filing the lawsuit on behalf of multiple other investors, bringing a class-action lawsuit against the company. In his complaint, Zappia speaks about being “misled” by the company, including on specific matters that have established a “conflict of interest” and have been perceived as “material omissions.”

Case to Be Viewed ahead of Shareholder Meeting

The trigger is the forthcoming acquisition of GAN’s B2B and B2C divisions for $107.6 million by Sega Sammy, which was pitched last year and will now be decided on during a shareholder meeting on February 13, 2024.

According to Zappia, one of the issues with the negotiations has been a reduction in the tabled offer, which began at $2.51 per share but was finally settled for $1.97, citing the changing nature of business within GAN, and the fact that WynnBet, a North American sports betting operator, had left certain key markets.

Zappia’s case also requests access to several documents that can flesh out further details about the exact negotiations that led to the announcement of the proposed deal on November 7, 2023. Previous discussions had taken place on September 30, 2022, the lawsuit’s text alleges.

Zappia further raises an issue with both the Financing Special Committee and the Merger Special Committee, without enough clarity provided into both to know how the final prices were negotiated and hence the suggested material omissions. The complaint similarly alleges conflicts of interests of board members with the proposed transactions.

GAN Denies Wrongdoing of Any Sort

GAN for its part has already refuted the claims that its current or former members of the Board of Directors have been complicit with underhand practices that have done damage to the business for personal gain. All proceedings surrounding the suggested merger were conducted in line with due process, a SEC filing for GAN says, which details the case.

The Zappia v. Gan ltd. has been filed with the United States District Court for the Southern District of New York in January, as confirmed by the same SEC filing provided by the company. Other defendants named in the case are Seamus McGill, Michael Smurfit, David Goldberg, Susan Bracey, and Eric Green, as per the same filing.

The post GAN Shareholder Up in Arms as Class-Action Lawsuit Filed appeared first on Keno Wizard.

Rivalry, a leading iGaming and online sports betting company, has secured a CAD 14 million (roughly $10.23 million) investment for an undisclosed existing institutional shareholder.

The agreement represents a non–brokered private placement offering of convertible debentures under which each convertible debenture will consist of CAD 1,000 principal amount of 10% senior secured convertible debentures of the Company, maturing on November 14, 2027.

The convertible debentures will bear interest from the date of issue at 10% a year and will be payable in cash quarterly arrears on March 30, June 30, September 30 and December 30 of each year.

Rivalry also noted that additional tranches of the non-brokered private placement offering may close for aggregate gross proceeds of up to CAD 27,500,000.

All securities connected to the offering will be subject to a hold period of four months. The securities have not been and will not be registered under the US Securities Act of 1933.

The Money Will Help Rivalry Strengthen Its Business

Rivalry announced that the net proceeds received through this arrangement will be used to fund general working capital and corporate purposes.

Stephen Salz, Rivalry’s co-founder & chief executive officer, commented on the investment, saying that his team is very pleased to have secured support from a long-standing institutional shareholder.

Salz noted that the company’s unique product mix and market position allowed it to reach its current “inflection point.” He is confident in Rivalry’s position and expects the company to further bolster its profitability in the first half of 2024.

Commenting on the new investment, Salz said:

The capital will enable Rivalry to accelerate the development and release of new products, expand marketing efforts, and extend into new geographies and verticals, setting us on a path where we can pursue growth and profitability at the same time.

Stephen Salz, co-founder & CEO, Rivalry

In other news, Rivalry just bolstered its product mix with the launch of Rivalry Ultimate Fan, a brand-new fantasy sports game focused on the National Basketball Association. The game allows fans to build their dream team while also collecting real-life NBA merchandise.

A month ago, Rivalry also added a branded slots category to its Casino.exe platform. The move sought to capitalize on the popularity of online slots to help the operator reinforce its business while still appealing to Millennial and Gen Z players.

The post Rivalry Secures $10M Investment from a Shareholder appeared first on Keno Wizard.