via NewMediaWire – Golden Matrix Group Inc. (NASDAQ: GMGI) (“Golden
Matrix”, “GMGI” or the “Company”), an international developer,
licensor and global operator of online gaming and eCommerce
platforms, systems and gaming content, today announced that its
Board of Directors has authorized the repurchase of up to a maximum
of $5.0 million of shares of the Company’s common stock. Subject to
any future extension in the discretion of the Board of Directors of
the Company, the repurchase program is scheduled to expire on July
15, 2025, when a maximum of $5.0 million of the Company’s common
stock has been repurchased, or when such program is discontinued by
the Board of Directors.
“We believe the repurchase program may provide numerous benefits
to the Company and its stockholders, including, among others,
possibly help counteract the short interest in the Company’s common
stock, mitigation of overhang on the market for the Company’s
common stock, attractive use of the Company’s capital to repurchase
shares at current prices, a more tax-efficient way of returning
capital to shareholders compared to declaring cash dividends and
accretion to earnings per share,” said Anthony Brian Goodman, Chief
Executive Officer of the Company.
Under the stock repurchase program, shares may be repurchased
from time to time in the open market or through negotiated
transactions at prevailing market rates, or by other means in
accordance with federal securities laws. Repurchases will be made
at management’s discretion at prices management considers to be
attractive and in the best interests of both the Company and its
stockholders, subject to the availability of shares, general market
conditions, the trading price of the common stock, alternative uses
for capital and the Company’s financial performance. Open market
purchases are expected to be conducted in accordance with the
limitations set forth in Rule 10b-18 of the Securities Exchange Act
of 1934 (the “Exchange Act”) and other applicable laws and
regulations. Repurchases may also be made under a Rule 10b5-1 plan,
which would permit shares to be repurchased when the Company might
otherwise be precluded from doing so under insider trading
laws.
The repurchase program may be suspended, terminated or modified
at any time for any reason, including market conditions, the cost
of repurchasing shares, the availability of alternative investment
opportunities, liquidity and other factors deemed appropriate.
These factors may also affect the timing and amount of share
repurchases. The repurchase program does not obligate the Company
to purchase any particular number of shares. There is no guarantee
as to the exact number or value of shares that will be repurchased
by the Company, if any.
The repurchase program is expected to be funded using the
Company’s working capital. As of June 30, 2024, the Company had
120,801,977 shares of common stock issued and outstanding.
All shares purchased by the Company under the stock repurchase
program will be retired and returned to treasury.
About Golden Matrix
Golden Matrix Group, based in Las Vegas NV, is an established
B2B and B2C gaming technology company operating across multiple
international markets. The B2B division of Golden Matrix develops
and licenses proprietary 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. The Company also
owns and operates MEXPLAY, a regulated online casino in Mexico.
Founded in 2001 and acquired by Golden Matrix in 2024, the
Meridianbet Group is a well-established online sports betting and
gaming group, licensed and currently operating in 15 jurisdictions
across Europe, Africa and South America. Meridianbet Group’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.
The companies’ sophisticated software automatically declines any
gaming or redemption requests from within the United States, in
strict compliance with current U.S. law.
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 amount, timing, and
sources of funding for the repurchase program, the fact that common
share repurchases may not be conducted in the timeframe or in the
manner the Company expects, or at all, 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 an outstanding convertible note and
warrants, the Company’s ability to pay amounts due under the
convertible note and covenants associated therewith and penalties
which could be due under the convertible note and securities
purchase agreement related thereto 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.
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