Golden Matrix Group Inc. (NASDAQ: GMGI) has revised the earnout structure of its share purchase agreement with Meridianbet, transitioning a portion of post-closing cash considerations to shares of Golden Matrix Common Stock for key sellers Aleksandar Milovanović, Zoran Milošević, and Snežana Božović. This amendment, effective October 1, 2024, aims to align the sellers' interests with the company's future success and improve financial flexibility for strategic initiatives.
The adjustment specifies that Milovanović will receive 40% of his consideration in stock, with the remainder deferred until at least November 9, 2024. Milošević's 40% stock portion complements monthly $50,000 cash installments from October to December 2024, while Božović's 20% stock conversion is balanced by two $50,000 payments in October and November 2024. This strategy not only secures a vested interest in Golden Matrix's performance but also conserves cash for reinvestment or debt reduction.
Golden Matrix's acquisition of Meridianbet earlier this year marked a significant expansion into the online gaming and sports betting sectors, leveraging Meridianbet's operations across 17 jurisdictions. The integration of Meridianbet's multi-currency, omni-channel technology supports Golden Matrix's ambition to dominate the B2B and B2C gaming technology space, with its RKings division already a notable player in paid competitions.
Despite these strategic moves, Golden Matrix faces challenges including regulatory hurdles, market competition, and the broader impacts of global economic and geopolitical uncertainties. The company's forward-looking statements caution investors about these risks, emphasizing the volatile nature of the online gaming industry and the potential need for additional financing.
For further details on Golden Matrix Group Inc.'s operations and financials, interested parties can access the company's filings on the SEC website, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
