GAN Sees Value in Battered Stock, Reveals $5 Million Share Buyback

Gaming engineering provider GAN Ltd. (NASDAQ:GAN) said its table of directors approved a $5 zillion divvy up repurchase program.

That could be a subscribe the companionship sees value inward its downtrodden stock, which missed nearly a thirdly of its time value last month solo and is lower by 52.32 percent year-to-date. Investors are cheering the intelligence as shares of GAN are higher by 6.41 percent inwards too soon trading.

Share repurchases below the new empowerment may begin like a shot and the programme will expire on May 31, 2022,” said the companion inward a statement. “The shares will be repurchased with cash on hand and cash in from operations. Any shares repurchased testament follow returned to treasury for cancellation.”

The buyback is GAN’s 1st shareholder rewards computer program since its May 2020 initial public offering (IPO). Formerly GameAccount Network, the accompany provides software-as-a-service (SaaS) solutions for iGaming and sportsbook operators.

GAN Buyback Details

As is the showcase with any deal repurchase scheme, GAN is under no obligation to buy back up the total $5 zillion worth of stock and the accompany tin can scrap the computer programme at anytime.

Should the keep company purchase back up $5 one thousand thousand worth of its shares, that would represent 1.1 percent of its $427.51 zillion securities industry capitalization. Based on the Nov. 30 closing toll of $9.67, a $5 billion buyback at that price would transfer to a greater extent than 517,000 of GAN’s 42.06 one thousand thousand shares spectacular from the market.

“We also recognise the economic value chance that has highly-developed inward our stock and require to follow prepared to move opportunistically during periods when the portion cost becomes significantly dissociated from our hereafter earnings potential,” said CEO Dermot Smurfit inward the statement. “Today’s annunciation provides us with an efficient tool to fare exactly that, keep our stockholders and thrust long-term balanced returns.”

While GAN carry is getting drubbed alongside a change of gaming peers this year, some analysts remain bullish on the name with at to the lowest degree ane noting it could live a takeover target.

Buyback Bonanza Arrives inward Gaming Space

While the announcements are coming from littler and mid-sized companies and the dollar bill figures aren’t high, apportion repurchase programs are reverting to the gaming space.

Accel Entertainment (NYSE:ACEL), one of the largest distributed gaming operators inwards the US, said inwards tardily November it testament purchase support up to $200 trillion worth of its equity.

Accel joins International Game Technology (NYSE:IGT) and Melco Resorts & Entertainment (NASDAQ:MCLO) in latterly announcing buyback plans. Additionally, Red John Rock Resorts (NASDAQ:RRR) before cobbler's last month said it’s paying a $3 per portion out special dividend, and that it’s purchasing upward $350 gazillion worth of its own shares inwards a Dutch people auction.

Some large-cap gaming companies are posing on sizable amounts of hard currency and with their stocks latterly sagging, those operators could be compelled to denote buyback programs.