Gaming Innovation Group (GiG) has issued a subordinated convertible loan to two Nordic investment funds which will be used to ‘expedite revenue generating activities and enhance future growth’.
The €8.5 million loan, which has been issued to Formue Nord A/S and Symmetry Invest A/S, comes as GiG looks to strengthen its cash position and capitalise on new growth opportunities that have presented themselves.
Richard Brown, CEO of GiG, explained: “Over the last 12 months GiG has simplified our business around our core B2B offering with significant growth in revenue and EBITDA for the first 9 month of 2020.
“As we are seeing continued expansion opportunities in all our 3 business segments we wanted to strengthen our cash position to be able to take advantage of those opportunities. We are happy that GiG is now in a place where we can attract capital from institutional investors on competitive terms to accelerate the business further.”
Using a strict capital allocation framework, the platform provider stated that the funds will be used to support the development of its omni-channel offering.
Moreover, the funds will also be used to ‘increase the long term speed to market’ which will help facilitate its sales operations. This will allow the platform provider to strengthen its paid media offering as well as offering the ‘potential to act in the M&A space within the Media Publishing department’.
Rasmus Viggers, CIO of Formue Nord, added: “We have been following GiG for a while and have been impressed by the progress in the business over the last year. We are happy that we are able to support GiG with a flexible finance solution that is setting GiG up for further growth in the years ahead.”