Generally, stocks related to online gambling did well again in December as data from New Jersey and Pennsylvania gave a very bullish outlook on the industry's growth. But for GAN the biggest news was a public offering of 7.2 million shares for $15.50 per share. The offering was announced midmonth and raised about $111 million for the company before fees.
This is a huge stock offering for a company like GAN, but it could be the right move long term. The market is valuing companies like this very highly, and the company can now use cash or its high stock price to acquire other companies to expand its portfolio.
I like the idea of using a high stock price to fund future growth. And after the Coolbet acquisition, we know that GAN is interested in expanding its portfolio of products. And the cash can also be used as a runway to invest in sales and other product development projects in order to grow organically. GAN is in a valuable position in the online gambling stack; it just now needs to live up to its billing as a growth stock, which could take time as online gambling in the U.S. and around the world grows.