GiG completes business split into Gentoo Media and GiG Software

Split
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Gaming Innovation Group Inc, now Gentoo Media Inc, has finalised its restructuring process, officially splitting up its media and platform division into two independently listed companies – Gentoo Media and GiG Software PLC.

Following final approval from its board of directors, Gentoo Media stated that “all necessary legal steps have been completed, and the assets and subsidiaries of the platform business have been extracted from Gentoo Media Inc. and distributed to the shareholders”. 

Completing the split initiated in February last year, GiG Software will continue as an independent B2B company, providing the igaming industry with its proprietary platform and sportsbook technology. The business will be listed on the Nasdaq First North Premier Growth Market.

Meanwhile, supplying marketing affiliate services to the igaming industry, Gentoo Media will be listed on the Oslo Stock Exchange in Norway with the ticker symbol G2MNO, in addition to being listed on Nasdaq Stockholm in Sweden with the ticker symbol G2M.

Jonas Warrer, CEO of Gentoo Media, noted: “We are thrilled by the opportunities this split presents, allowing us to strengthen our market leadership while enhancing shareholder value.”

Gentoo Media has also entered into a €25m Revolving Facility Agreement with Citibank Europe plc, “securing financial flexibility and operational excellence in its daily operations”.

“This marks a new chapter in the ongoing evolution of our media affiliate business,” stated Mikael Harstad, Chair of the Board at Gentoo Media.

“Gentoo Media is now well-positioned to continue its remarkable growth journey as an independent and vertical-focused company within igaming.”

The distribution of the GiG Software business to the shareholders has taken place “in the form of depository receipts in GiG Software PLC, i.e. Norwegian Depository Receipts (NDRs) to investors holding shares in Euronext Securities Oslo (VPS), and Swedish Depository Receipts (SDRs) to investors holding shares in Euroclear Sweden”.

GiG Software’s SDRs will be listed on the Nasdaq First North Premier Growth Market, but neither the SDRs nor the NDRs will be listed on any stock exchange in Norway. 

However, holders of NDRs can convert the NDRs to SDRs by contacting their banks or brokers. GiG Software aims to list the NDRs on the Euronext NOTC market.

Richard Carter, CEO of GiG, commented: “Today marks a pivotal moment for GiG as we embark on a new chapter of growth and opportunity. The strategic spinout allows us to unlock the full potential of our proprietary technology and provides GiG with the focus, agility, and innovation needed to excel in the B2B space. 

“By standing alone, we can fully commit to delivering value to our partners and investors, all while leveraging the foundations that we have already laid for sustainable long-term growth. This is the start of an exciting new era, with GiG positioned to deliver as a leader in the global B2B igaming industry.”

The platform business has received a starting cash balance sufficient to secure its operations. Meanwhile, the media business has used part of the proceeds from the share issue in June 2024 to repay €5.9m of bank loans held by Sportnco before the split.

“GiG represents a very exciting growth story: having full control over our technology stack, combined with management’s vision and the execution of our strategic initiatives, the company is well positioned for success,” said Phil Richards, CFO at GiG.

“In addition, the quality of our platform will give us a significant competitive advantage. We’re confident that as we continue to deliver on our strategy, the full value of the potential of this business will be realised.”

Petter Nylander, Chair of the Board at GiG, added: “Today is the realisation of our long-held confidence in the company’s ability to thrive independently. By focusing exclusively on our technology and full end-to-end services, we are unlocking new avenues for growth and innovation. 

“The board fully believes in the vision and the leadership team driving this business forward. We are confident that GiG is uniquely positioned to capitalise on the immense opportunities ahead, and today’s listing marks the beginning of an exciting journey that will create significant value for our investors.”