Gentoo Media Completes Restructuring Successfully

In a significant development for the iGaming industry, Gentoo Media Inc. Previously operating as Gaming Innovation Group Inc., Gentoo Media has successfully finalized its restructuring as of September 30, 2024. The company has successfully divided its media and platform divisions into two separate, publicly listed companies: Gentoo Media Inc., which will continue as a leading media affiliate within the iGaming sector, and GiG Software PLC, a B2B entity providing platform and sportsbook technology. This strategic move is expected to enhance operational focus, expand market reach, and optimize shareholder value.

The Restructuring Process and Strategic Vision

The decision to divide Gentoo Media's platform and media businesses came after careful deliberation by the Board of Directors. Following a comprehensive review, the board approved the separation, finalizing all legal steps necessary to complete the process. As a result, the platform business, now operating under the name GiG Software PLC, has been formally extracted from Gentoo Media Inc., enabling the newly independent company to focus solely on delivering its proprietary platform and sportsbook technology across the global iGaming sector.

GiG Software PLC will be well-positioned to operate as a focused B2B company, leveraging its deep expertise in delivering scalable solutions for online gaming operators. The company aims to further expand its technological capabilities and services, making a distinct mark within the highly competitive iGaming industry. GiG Software’s core competencies include platform technology, sportsbook solutions, and managed services, making it a key player in a rapidly evolving market. The spin-off allows the company to focus on growing and delivering bespoke solutions tailored to the needs of global gaming operators.

Gentoo Media: A Focus on Media Leadership

As GiG Software PLC moves forward in the B2B sector, Gentoo Media continues to thrive as a leading media affiliate. Now an independent public company, Gentoo Media is well-positioned to leverage its strengths as a specialized, vertically-focused player in the iGaming market. The company has successfully positioned itself as a prominent player in the affiliate marketing space, connecting consumers with leading online gaming brands.

Under its new structure, Gentoo Media will continue its focus on media services, including the development and distribution of affiliate marketing content aimed at enhancing player engagement and conversion for its iGaming partners. By focusing solely on its media business, the company aims to drive further growth, strengthen its market leadership, and enhance value for its shareholders.

Chairman of the Board, Mikael Harstad, emphasized the significance of this transition, stating: “This marks a new chapter in the ongoing evolution of our media affiliate business. Gentoo Media is now well-positioned to continue its remarkable growth journey as an independent and vertical focused company within iGaming.”

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

Financial Flexibility with EUR 25 Million Revolving Facility

Alongside the completion of its restructuring, Gentoo Media has successfully obtained a EUR 25 million Revolving Credit Facility from Citibank Europe plc. This agreement provides the company with greater financial flexibility, supporting its day-to-day operations and strategic initiatives. Citibank’s involvement as Gentoo Media’s primary banking partner is a significant step forward, ensuring the company’s ability to manage its financial resources efficiently while pursuing long-term growth opportunities.

With access to this revolving credit facility, Gentoo Media can ensure operational excellence while remaining financially agile in an increasingly competitive market. This financial arrangement strengthens the company’s balance sheet and reinforces its commitment to maintaining a strong financial foundation as it continues its growth trajectory.

Shareholder Distribution and Listings

As part of the restructuring, shareholders of Gentoo Media Inc. have been issued depository receipts for GiG Software PLC. Norwegian investors holding shares in Euronext Securities Oslo (VPS) have received Norwegian Depository Receipts (NDRs), while Swedish investors holding shares in Euroclear Sweden have been issued Swedish Depository Receipts (SDRs).

The SDRs of GiG Software PLC are set to be listed on the Nasdaq First North Premier Growth Market, with trading scheduled to begin on October 1, 2024. However, the NDRs will not be listed on any stock exchange in Norway. Norwegian investors, however, will have the option to convert their NDRs into SDRs by contacting their respective banks or brokers. In the future, GiG Software PLC intends to list the NDRs on the Euronext NOTC market, further enhancing the company’s accessibility for investors.

Ensuring Financial Stability for GiG Software PLC

As GiG Software PLC begins its journey as an independent entity, it has been capitalized with a sufficient cash balance to support its initial operations. The spin-off was structured to ensure the platform business would be financially secure from day one. Part of the proceeds from Gentoo Media’s June 2024 share issue was allocated to repaying a EUR 5.9 million bank loan previously held by Sportnco, one of the platform businesses included in the spin-off.

This financial preparedness underlines GiG Software’s commitment to sustainable growth as it embarks on its next phase of development. With a strong capital base and a clear focus on delivering cutting-edge technology to its clients, GiG Software PLC is expected to emerge as a key player in the global iGaming technology space.

Dual Listings of Gentoo Media Inc.

Following the restructuring, Gentoo Media Inc. continues its operations as an independent media company with dual listings on the Oslo Stock Exchange in Norway (ticker symbol: G2MNO) and Nasdaq Stockholm in Sweden (ticker symbol: G2M). These dual listings provide the company with increased visibility and accessibility to a broader range of investors, supporting its long-term growth ambitions.

The company’s leadership remains confident in the potential for both Gentoo Media Inc. and GiG Software PLC to thrive independently. Each entity has a distinct focus, operational strategy, and growth trajectory, enabling them to maximize their respective opportunities in the iGaming sector.

Conclusion: A New Era for Gentoo Media and GiG Software PLC

The completion of Gentoo Media’s restructuring marks a pivotal moment in the company’s history. With two independently listed companies, Gentoo Media Inc. and GiG Software PLC are now positioned to pursue distinct growth strategies, each leveraging its core competencies to maximize value for shareholders.

As Gentoo Media continues its journey as a media-focused business and GiG Software PLC embarks on its role as a B2B technology provider, both entities are well-equipped to navigate the challenges and opportunities that lie ahead in the dynamic iGaming industry.

FAQs

What does the restructuring of Gentoo Media involve?
The restructuring involves splitting Gentoo Media Inc. into two independent companies: Gentoo Media Inc. and GiG Software PLC.

What is GiG Software PLC's primary business?
GiG Software PLC provides proprietary platform and sportsbook technology to global iGaming operators.

What role does Citibank play in Gentoo Media’s restructuring?
Citibank has extended a EUR 25 million Revolving Facility Agreement, providing financial flexibility for Gentoo Media.

Where are Gentoo Media and GiG Software PLC listed?
Gentoo Media is listed on the Oslo Stock Exchange and Nasdaq Stockholm, while GiG Software PLC’s SDRs are listed on Nasdaq First North.

What are Norwegian Depository Receipts (NDRs) and Swedish Depository Receipts (SDRs)?
NDRs and SDRs represent shares of GiG Software PLC held by Norwegian and Swedish investors, respectively.

Can Norwegian investors convert their NDRs into SDRs?
Yes, Norwegian investors can convert NDRs into SDRs by contacting their banks or brokers.

How will GiG Software PLC’s operations be funded post-split?
GiG Software PLC has been provided with sufficient capital to fund its operations from the outset.

What does Gentoo Media’s media business focus on?
Gentoo Media focuses on affiliate marketing within the iGaming sector, connecting consumers with online gaming brands.

How does the restructuring impact shareholders?
Shareholders receive depository receipts for GiG Software PLC, and Gentoo Media continues as an independent media company.

What are the future growth prospects for Gentoo Media and GiG Software PLC?
Both companies are positioned for growth, with Gentoo Media focusing on media services and GiG Software expanding its technology solutions.