Coolbet CEO Svendsen Rips GAN Leadership in LinkedIn Post

Former Coolbet CEO and founder Jan Svendsen latterly took to LinkedIn with vituperative commentary on GAN Ltd. (NASDAQ:GAN) — the gaming technology provider that acquired his keep company finally year.

Svendsen, a 35-year gaming manufacture old hand with a data track put down of starting companies and selling those entities to larger rivals, unleashed his literary criticism of GAN ahead of the company’s yearbook meeting. That’swith the shares mastered almost 81% o'er the yesteryear year.

The former Coolbet hirer didn’t throw back, levying rough words at GAN and CEO Dermot Smurfit. He opined on issues regarding overgenerous executive director compensation to sending the damage messages to Coolbet managers that united the company, among others.

One of the to the highest degree unsatisfying issues is the amount of the salaries and bonuses the leaders and the board feature been paying themselves. 2021 was a horrible Year for GAN; GAN did non deliver on the undersurface business line and the percentage price dropped significantly. Regardless, the leaders team gave themselves vast bonuses. Why? Aren’t bonuses something you should make up come out when you garden truck positive degree results?,” said Svendsen in his LinkedIn post.

Data reassert 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 inwards February 2021. But past tardily Nov that year, the stock up labored around $10. Shares of GAN domiciliate 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 vendee an avenue for bolstering its offerings targeted at iGaming and sportsbook operators, 2 of its marquee business inward the US.

Svendsen said he had “many reservations” nigh GAN getting his company, and that he signed off on the trade come out of observe for Coolbet gameboard members, investors, and managers that made it possible for him to establish the company.

At the time the business deal was announced Coolbet was debt-free, more or less profitable on the basis of earnings before interest, taxes, wear and tear and amortization (EBITDA), and sported breakeven operating income. Today, Coolbet, inwards Svendsen’s estimation, is the jewel of the GAN crown.

The Coolbet founder notes the entity he started is the only if parting of GAN that’s making money today, and “If you spaced Coolbet from GAN, the economic value of Coolbet on its possess would twice as practically as GAN now.”

Svendsen has pare in the game. He owns 840,000 shares of GAN and his son is chief financial ship's officer of Coolbet. Additionally, he mentored Coolbet’s chief executive 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 ultimately decided to allow for the society because he was offered a mid-level role inward Kingdom of Spain — a place well-below his qualifications.

Still, he took publication with the board’s manifest involuntariness to bank check Smurfit and its druthers for using divvy up options grants almost exclusively for directors and high-ranking executives.

“I don’t think the Board is real pro at GAN. From what I heard, the Chairman is an older friend of the Smurfit family. Dermot Smurfit’s uncle also serves on the Board,” notes Svendsen. “In addition, the CFO of GAN, Karen Flores, serves on the Board. In my opinion, ane of the responsibilities of the Board is to look after GAN’s money; it does not seem wise to have got the CFO do on the Board. My superior general impression is that the Board is weak and to a greater extent ilk a ‘yes Dermot’ Board.”

The former Coolbet leader also said GAN’s organisational anatomical structure is ineffective, with leaders overspread crossways the world, making in-person meetings difficult.

On a more confirming note, Svendsen believes GAN has “great potential,” especially if it embraces unexampled leadership. He’s optimistic virtually the growth prospects for iGaming inward the US, and believes GAN could be an acquisition target inward the future.