Golden Matrix Group Inc. (NASDAQ: GMGI), a leading B2B and B2C gaming technology company, has announced a strategic financial move that underscores the company’s strong growth trajectory and investor confidence. Aleksandar Milovanović, the founder of GMGI’s wholly-owned subsidiary Meridianbet, has agreed to convert $2 million of debt owed to him into equity in the company.
This decision comes in the wake of GMGI’s recent acquisition of Meridianbet and represents a significant vote of confidence in the company’s future. The debt, which was previously held by Milovanović in the form of a convertible note totaling $2,805,671, will now be reduced to $805,671 as a result of this agreement.
Brian Goodman, CEO of Golden Matrix Group, emphasized the importance of this move, stating, ‘This 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.’ Goodman further noted that this action not only reduces the company’s outstanding debt but also reinforces their belief in GMGI’s potential for sustained growth.
The conversion of debt to equity is expected to have several positive impacts on Golden Matrix Group’s financial position. Firstly, it improves the company’s already strong Net Debt Leverage, providing enhanced financial flexibility as GMGI continues to focus on its various strategic initiatives and expansion efforts. Additionally, this move aligns the interests of key stakeholders with the company’s long-term prospects for further growth and overall continued success.
Golden Matrix Group, based in Las Vegas, NV, operates globally across multiple international markets. The company’s B2B division develops and licenses branded gaming platforms for its extensive list of clients, while its B2C division, RKings, operates a high-volume eCommerce site enabling end users to enter paid-for competitions on its proprietary platform in authorized markets.
Meridianbet, founded in 2001 and acquired by Golden Matrix in April 2024, is a well-established online sports betting and gaming group. Licensed and currently operating in 17 jurisdictions across Europe, Africa, and South America, Meridianbet utilizes proprietary technology and scalable systems to operate in multiple countries and currencies with an omni-channel approach to markets, including retail, desktop online, and mobile.
This strategic financial decision comes at a time when the global gaming industry is experiencing significant growth and transformation. As online gaming and sports betting continue to gain traction in various markets worldwide, companies like Golden Matrix Group are positioning themselves to capitalize on these opportunities. The debt-to-equity conversion not only strengthens GMGI’s financial position but also signals to investors and competitors alike that the company is well-prepared for future expansion and market challenges.
The move is likely to have implications beyond just Golden Matrix Group. It may set a precedent for other companies in the gaming technology sector, encouraging similar strategic financial decisions that align the interests of founders and key stakeholders with those of the company and its shareholders. This could potentially lead to a more stable and growth-oriented industry landscape.
As Golden Matrix Group continues to build strong relationships with stakeholders while driving sustainable growth and value creation, this latest development positions the company as a formidable player in the global gaming technology market. Investors and industry observers will undoubtedly be watching closely to see how this strategic move translates into tangible business outcomes and market performance in the coming months and years.
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