Golden Matrix Group Inc. Announces Debt Conversion by Meridianbet Founder to Equity
Golden Matrix Group Inc. (NASDAQ: GMGI) announces that Aleksandar Milovanović, founder of its subsidiary Meridianbet, has agreed to convert $2,000,000 of debt into equity. This reduces his convertible note from $2,805,671 to $805,671. The decision reflects Milovanović's confidence in GMGI's performance and growth potential.
CEO Brian Goodman states this move sends a strong message to the market and shareholders, reducing outstanding debt and reinforcing belief in the company's potential. The conversion is expected to improve GMGI's Net Debt Leverage and provide enhanced financial flexibility for strategic initiatives and expansion efforts.
Golden Matrix Group Inc. (NASDAQ: GMGI) annuncia che Aleksandar Milovanović, fondatore della sua controllata Meridianbet, ha accettato di convertire $2.000.000 di debito in capitale. Questo riduce la sua nota convertibile da $2.805.671 a $805.671. La decisione riflette la fiducia di Milovanović nelle performance e nelle potenzialità di crescita di GMGI.
Il CEO Brian Goodman afferma che questa mossa invia un forte messaggio al mercato e agli azionisti, riducendo il debito residuo e rafforzando la convinzione nel potenziale dell'azienda. Si prevede che la conversione migliori il leverage del debito netto di GMGI e fornisca una maggiore flessibilità finanziaria per iniziative strategiche e sforzi di espansione.
Golden Matrix Group Inc. (NASDAQ: GMGI) anuncia que Aleksandar Milovanović, fundador de su filial Meridianbet, ha acordado convertir $2,000,000 de deuda en capital. Esto reduce su nota convertible de $2,805,671 a $805,671. La decisión refleja la confianza de Milovanović en el rendimiento y el potencial de crecimiento de GMGI.
El CEO Brian Goodman declara que este movimiento envía un fuerte mensaje al mercado y a los accionistas, reduciendo la deuda pendiente y reforzando la creencia en el potencial de la empresa. Se espera que la conversión mejore el apalancamiento de deuda neta de GMGI y proporcione una mayor flexibilidad financiera para iniciativas estratégicas y esfuerzos de expansión.
골든 매트릭스 그룹 인크. (NASDAQ: GMGI)는 그 자회사인 메리디안벳의 설립자인 알렉산다르 밀로바노비치가 2,000,000 달러의 부채를 자본으로 전환하기로 동의했다고 발표했습니다. 이로 인해 그의 전환 가능한 채권은 2,805,671 달러에서 805,671 달러로 줄어들었습니다. 이 결정은 밀로바노비치가 GMGI의 성과와 성장 가능성에 대한 신뢰를 반영합니다.
CEO 브라이언 굿맨은 이 조치가 시장과 주주에게 강력한 메시지를 전달한다고 언급하며, 미지급 부채를 줄이고 회사의 잠재력에 대한 믿음을 강화한다고 말했습니다. 전환은 GMGI의 순부채 비율을 개선하고 전략적 이니셔티브 및 확장 노력을 위한 재정적 유연성을 제공할 것으로 예상됩니다.
Golden Matrix Group Inc. (NASDAQ: GMGI) annonce qu'Aleksandar Milovanović, fondateur de sa filiale Meridianbet, a accepté de convertir 2 000 000 $ de dettes en capitaux propres. Cela réduit sa note convertible de 2 805 671 $ à 805 671 $. Cette décision reflète la confiance de Milovanović dans la performance et le potentiel de croissance de GMGI.
Le PDG Brian Goodman déclare que ce mouvement envoie un message fort au marché et aux actionnaires, réduisant la dette en cours et renforçant la croyance dans le potentiel de l'entreprise. On s'attend à ce que la conversion améliore l'effet de levier de la dette nette de GMGI et offre une plus grande flexibilité financière pour des initiatives stratégiques et des efforts d'expansion.
Golden Matrix Group Inc. (NASDAQ: GMGI) gibt bekannt, dass Aleksandar Milovanović, Gründer ihrer Tochtergesellschaft Meridianbet, sich bereit erklärt hat, 2.000.000 US-Dollar Schulden in Eigenkapital umzuwandeln. Dies reduziert seine wandelbare Anleihe von 2.805.671 US-Dollar auf 805.671 US-Dollar. Die Entscheidung spiegelt Milovanovićs Vertrauen in die Leistung und das Wachstumspotenzial von GMGI wider.
CEO Brian Goodman erklärt, dass dieser Schritt eine starke Botschaft an den Markt und die Aktionäre sendet, indem er die ausstehenden Schulden reduziert und den Glauben an das Potenzial des Unternehmens stärkt. Es wird erwartet, dass die Umwandlung die Nettoverschuldungsquote von GMGI verbessert und finanzielle Flexibilität für strategische Initiativen und Expansionsbemühungen bietet.
- Conversion of $2,000,000 debt to equity by Meridianbet founder
- Reduction of outstanding debt from $2,805,671 to $805,671
- Improvement in Net Debt Leverage
- Enhanced financial flexibility for strategic initiatives and expansion
- None.
Insights
This debt-to-equity conversion is a positive development for Golden Matrix Group (GMGI). The
This transaction demonstrates strong alignment between management and shareholders. Milovanović's willingness to convert debt to equity showcases his commitment to GMGI's long-term success, reducing potential conflicts of interest between creditors and equity holders. This move also enhances corporate governance by simplifying the capital structure and reducing reliance on debt financing. The conversion likely improves financial ratios, potentially making GMGI more compliant with debt covenants and reducing financial risk. However, investors should monitor the terms of the equity conversion, including any potential preferential rights or voting power granted to Milovanović, to ensure fair treatment of all shareholders. Overall, this decision appears to strengthen GMGI's corporate governance framework and stakeholder alignment.
This debt conversion could have a positive impact on GMGI's market perception. It may be interpreted as a vote of confidence from a key insider, potentially boosting investor sentiment. The improved balance sheet and reduced debt burden could make GMGI more attractive to institutional investors who prioritize financial stability. This move might also position GMGI more favorably for future acquisitions or expansion opportunities, as reduced debt often correlates with increased strategic flexibility. However, it's important to monitor how the market reacts to potential share dilution. If GMGI's stock price remains stable or increases following this announcement, it would indicate that the market views this development positively, outweighing dilution concerns. Investors should watch for any changes in analyst recommendations or institutional holdings as indicators of shifting market sentiment.
LAS VEGAS, NV, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Golden Matrix Group Inc. (NASDAQ: GMGI) (“GMGI” or “the Company”) is pleased to announce that Aleksandar Milovanović, the founder of wholly owned GMGI subsidiary, Meridianbet, has agreed to convert
The debt, previously held by Mr. Milovanović in the form of a convertible note totalling
This strategic decision highlights Milovanović's confidence in Golden Matrix Group’s performance and his commitment to ensuring the Company continues its significant growth trajectory.
Brian Goodman, CEO of Golden Matrix Group, commented, "This move sends a strong message to the market and to our shareholders. Mr. Milovanović’s decision to convert his debt to equity reflects both his and the Company’s confidence in Golden Matrix’s short- and long-term outlooks. This action not only reduces our outstanding debt, but reinforces our belief in the Company's potential for sustained growth. We are excited about our path forward and performance to date, and the management team extends our gratitude to Mr. Milovanović for his continued support and confidence in the Company’s vision."
The conversion of debt to equity also improves the Company’s already strong Net Debt Leverage. Additionally, this move aligns the interests of key stakeholders with GMGI’s long-term prospects for further growth and overall continued success. Moreover, it is expected to provide GMGI with enhanced financial flexibility as it continues to focus on its various strategic initiatives and expansion efforts.
GMGI remains committed to building strong relationships with stakeholders while driving sustainable growth and value creation.
About Golden Matrix Group
Golden Matrix Group, based in Las Vegas, NV, is a leading B2B and B2C gaming technology company utilizing proprietary technology and operating globally across multiple international markets. The B2B division of Golden Matrix develops and licenses branded gaming platforms for its extensive list of clients, and RKings, its B2C division, operates a high-volume eCommerce site enabling end users to enter paid-for competitions on its proprietary platform in authorized markets.
About Meridianbet
Founded in 2001 and acquired by Golden Matrix in April 2024, Meridianbet Group is a well-established online sports betting and gaming group, licensed and/or currently operating in 17 jurisdictions across Europe, Africa, and South America. Meridianbet’s successful business model utilizes proprietary technology and scalable systems, thus allowing it to operate in multiple countries and currencies and with an omni-channel approach to markets, including retail, desktop online, and mobile.
Connect with us
ir@goldenmatrix.com
https://twitter.com/gmgi_official
https://www.instagram.com/goldenmatrixgroup/
https://x.com/meridianbet_ofc
ir@meridianbet.com
ICR:
Brett Milotte
Brett.Milotte@icrinc.com
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws, including within the meaning of the Private Securities Litigation Reform Act of 1995 (“forward-looking statements”). Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.
Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, the ability of the Company to obtain the funding required to pay certain Meridianbet Group acquisition post-closing obligations, the terms of such funding, potential dilution caused thereby and/or covenants agreed to in connection therewith; potential lawsuits regarding the acquisition; dilution caused by the terms of the Note and Warrant, the Company’s ability to pay amounts due under the Note and covenants associated therewith and penalties which could be due under the Note and securities purchase agreement for failure to comply with the terms thereof; the business, economic and political conditions in the markets in which the Company operates; the effect on the Company and its operations of the ongoing Ukraine/Russia conflict and the conflict in Israel, changing interest rates and inflation, and risks of recessions; the need for additional financing, the terms of such financing and the availability of such financing; the ability of the Company and/or its subsidiaries to obtain additional gaming licenses; the ability of the Company to manage growth; the Company’s ability to complete acquisitions and the availability of funding for such acquisitions; disruptions caused by acquisitions; dilution caused by fund raising, the conversion of outstanding preferred stock, convertible securities and/or acquisitions; the Company’s ability to maintain the listing of its common stock on the Nasdaq Capital Market; the Company’s expectations for future growth, revenues, and profitability; the Company’s expectations regarding future plans and timing thereof; the Company’s reliance on its management; the fact that the sellers of the Meridianbet Group hold voting control over the Company; related party relationships; the potential effect of economic downturns, recessions, increases in interest rates and inflation, and market conditions, decreases in discretionary spending and therefore demand for our products and services, and increases in the cost of capital, related thereto, among other affects thereof, on the Company’s operations and prospects; the Company’s ability to protect proprietary information; the ability of the Company to compete in its market; the effect of current and future regulation, the Company’s ability to comply with regulations and potential penalties in the event it fails to comply with such regulations and changes in the enforcement and interpretation of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our business; the risks associated with gaming fraud, user cheating and cyber-attacks; risks associated with systems failures and failures of technology and infrastructure on which the Company’s programs rely; foreign exchange and currency risks; the outcome of contingencies, including legal proceedings in the normal course of business; the ability to compete against existing and new competitors; the ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products, including potential recessions and global economic slowdowns. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this press release are reasonable, we provide no assurance that these plans, intentions or expectations will be achieved.
Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly-filed reports, including, but not limited to, under the “Special Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended October 31, 2023 and its Quarterly Report on Form 10-Q for the quarter ended January 31, 2024, and future periodic reports on Form 10-K and Form 10‑Q. These reports are available at www.sec.gov.
Attachment
FAQ
How much debt did Aleksandar Milovanović convert to equity in Golden Matrix Group Inc. (GMGI)?
What was the original amount of the convertible note held by Milovanović in GMGI?
How does the debt conversion affect Golden Matrix Group Inc.'s (GMGI) financial position?
Who is Aleksandar Milovanović in relation to Golden Matrix Group Inc. (GMGI)?
