US firm buys stake in Dermot Smurfit Jnr-led gaming company

The Dermot Smurfit Jnr-led online gaming technology company GAN sold £450,000 (€534,000) of shares to US investment firm David Capital Partners.

The sale, by way of a placing of 1.5 million new ordinary shares at 30p each, represents 2.2 per cent of the enlarged amount of shares in issue as a result of the transaction, the company said on Wednesday

GAN said it plans to use the proceeds for expansion in the US, partiulcarly in light of regulatory developments in Pennsylvania last month where internet gaming legislation is approved in principle and expected to become law later this year.

“This placing brings GAN the support of Chicago-based David Capital Partners and actively raises awareness of GAN’s investment case among the US technology investment community whom we believe are natural investors for our business,” Mr Smurfit, the company’s chief executive, said.

GAN is listed on the junior markets on the London and Irish stock exchanges. It floated in 2013 at a price of £1.35 per share. Various members of the Smurfit family are among its top shareholders, with Dermot holding almost 14 per cent at the end of last year, while his uncle, Michael Smurfit, owned almost 10 per cent.