Former Coolbet CEO and founding father Jan Svendsen of late took to LinkedIn with scathing commentary on GAN Ltd. (NASDAQ:GAN) — the gaming engineering provider that acquired his keep company lastly year.
Svendsen, a 35-year gaming industry vet with a runway register of starting companies and merchandising those entities to larger rivals, unleashed his literary criticism of GAN beforehand of the company’s yearbook meeting. That’swith the shares land almost 81% over the past year.
The former Coolbet brag didn’t contain back, levying harsh words at GAN and CEO Dermot Smurfit. He opined on issues regarding overgenerous executive compensation to sending the legal injury messages to Coolbet managers that joined the company, among others.
One of the most dissatisfactory issues is the amount of the salaries and bonuses the leaders and the table experience been paying themselves. 2021 was a horrible Year for GAN; GAN did not pitch on the freighter run along and the divvy up toll dropped significantly. Regardless, the leadership squad gave themselves Brobdingnagian bonuses. Why? Aren’t bonuses something you should pay off come out when you produce positive degree results?,” said Svendsen inwards his LinkedIn post.
Data corroborate GAN’s clip as a public fellowship has been trying. Its May 2020 initial public offering (IPO) was priced at $8.50 a share, and from there, the carry caught some of the 2020 gaming equity rally. The shares flirted with $32 in February 2021. But by late Nov that year, the gunstock laboured around $10. Shares of GAN domicile at $3.33 at this writing.
Svendsen Wasn’t Enamored with GAN Takeover
In Nov 2020, GAN offered $175 zillion in hard cash and equity for Coolbet – a relocation that was heralded by analysts. At that time, the buyer said the purchase would be accretive to earnings, and gives the purchaser an avenue for bolstering its offerings targeted at iGaming and sportsbook operators, ii of its marquise patronage inward the US.
Svendsen said he had “many reservations” nigh GAN getting his company, and that he signed away on the sell come out of prize for Coolbet room members, investors, and managers that made it possible for him to establish the company.
At the clip the business deal was announced Coolbet was debt-free, somewhat profitable on the fundament of earnings before interest, taxes, wear and tear and amortisation (EBITDA), and sported breakeven operating income. Today, Coolbet, inward Svendsen’s estimation, is the precious stone of the GAN crown.
The Coolbet father notes the entity he started is the only if constituent of GAN that’s making money today, and “If you separated Coolbet from GAN, the note value of Coolbet on its have would twice as practically as GAN now.”
Svendsen has skin inward the game. He owns 840,000 shares of GAN and his boy is chief financial officer of Coolbet. Additionally, he mentored Coolbet’s chief executive director officer for 20 years.
Board, Organizational Structure Criticized
Svendsen acknowledges that he wanted a role at GAN, as he wasn’t ready to retire, and in the end decided to leave the troupe because he was offered a mid-level role inward Kingdom of Spain — a posture well-below his qualifications.
Still, he took supply with the board’s manifest unwillingness to check over Smurfit and its preference for using share options grants almost exclusively for directors and high-ranking executives.
“I don’t cerebrate the Board is very pro at GAN. From what I heard, the Chairman is an old friend of the Smurfit family. Dermot Smurfit’s uncle also serves on the Board,” notes Svendsen. “In addition, the CFO of GAN, Karenic Flores, serves on the Board. In my opinion, 1 of the responsibilities of the Board is to look after GAN’s money; it does non seem wise to hold the CFO function on the Board. My full general belief is that the Board is weak and more similar a ‘yes Dermot’ Board.”
The former Coolbet leader also said GAN’s organisational construction is ineffective, with leaders spreadhead across the world, making in the flesh(p) meetings difficult.
On a to a greater extent positive degree note, Svendsen believes GAN has “great potential,” particularly if it embraces young leadership. He’s optimistic almost the growing prospects for iGaming inward the US, and believes GAN could follow an acquisition target inward the future.