GiG Software raises €8.5M to fund African acquisition
What's the deal? GiG SoftwareDealroom has a profile for this one. Try Dealroom → has raised €8.5 million through a directed share issue and convertible loans to fund an acquisition. The Nasdaq Stockholm-listed company will buy 80% of 888 Africa LimitedDealroom has a profile for this one. Try Dealroom →, with the remaining proceeds going to general corporate purposes.
The breakdown: The share issue, priced at SEK 1.725 per Swedish Depository Receipt (SDR), raised €2,500,000 in gross proceeds. GiG also secured €6,000,000 in two-year convertible loans carrying 15% annual interest.
Who's backing it? Subscribers to the share issue include GiG's largest shareholders — the MJ Foundation and ZJ Foundation — plus chief executive officer Richard Carter. The convertible loan lenders are Carter, Myrild ASDealroom has a profile for this one. Try Dealroom →, and Nalavio LimitedDealroom has a profile for this one. Try Dealroom →.
Why a directed issue? The board weighed a rights issue but chose the directed route to move quickly and cut transaction costs. It said the structure let the company "act swiftly" on the 888AFRICA deal while limiting the risk to its SDR trading price.
The fine print: The share issue dilutes existing SDR holders by roughly 9%, lifting the total share count to 176,907,744. Subscription is conditional on completing the 888AFRICA acquisition and receiving funds. On the convertible loans, 25% of the principal can convert into SDRs every six months at a 10% discount to the 10-day volume-weighted average price.
The signal: The financing points GiG deeper into Africa's gambling and gaming market, where the 888AFRICA acquisition gives it an 80% stake. Leaning on insiders and existing shareholders rather than a public raise underscores how the company is prioritising speed to close the deal.
Read more: placera.se
Image credit: Jim Makos
