Description

This is a quick, opportunistic, timely write-up. It will be short.

GAN signed a definitive merger agreement to be acquired at 1.97 per share in cash by Sega Sammy.

Here is the link to the 8k https://www.bamsec.com/filing/149315223039812?cik=1799332

Here is a link to the agreement: https://www.bamsec.com/filing/149315223039812/2?cik=1799332

After the market open, a law firm announces investigation https://www.businesswire.com/news/home/20231108799810/en/GAN-Stock-Alert-Halper-Sadeh-LLC-Is-Investigating-Whether-the-Sale-of-GAN-Limited-Is-Fair-to-Shareholders

I think this news will cause a short term drop but I think after all is said and done, the deal will go through.

I read the agreement. It is solid. B. Riley was the advisor. 

You can buy it now at 1.62  for a 21.6% gain by 4th quarter of 2024.

Insiders own 5% of shares.

Goldman Sachs owns 5%

By the end of the day, arbitrageurs will step in.  Gap will be closed. They will vote for the deal.  

I do not see much risk from today's investigation news by the law firm. It looks just like an ambulance chaser. 

Catalyst

Merger arb opportunity caused by a press release by an ambulance chaser law firm.