We've now invested in GAN Ltd (ticker: GAN), a best-in-class B2B technology platform for online casino gaming and sports betting. Think of it as the "toll road" for gaming operations. Its strong growth, scalable model, and high switching costs make it an invaluable emerging asset in its industry.
As states continue to legalize and launch online gambling offerings, we believe casino operators will choose to outsource their tech stacks to turn-key providers like GAN. We believe GAN can reach ~$48/share in the next three years (+20% annualized return).
Attached is a 3-minute video from myself and our Head of Research explaining the GAN thesis, along with the full Initiation Report (5-minute read).
We've sold Collectors Universe (ticker: CLCT) after a ~120% return in just 5 months -- a major win for our Opportunities clients. Our investment thesis had begun to play out quickly before it was just acquired for $92/share by a private investor group (vs. our ~$42/share entry price).
We are pleased with how we used Titan's large and growing scale to reject the low-ball offer that this investor group first proposed a few months ago ($75.25/share) and agitate for a much higher, fairer price for you. Let's recap.
When a buyer looks to acquire a public company, they often need to gain approval of the majority of the target company's shareholders. Back in late fall 2020, a private investor group offered to buy CLCT for $75.25/share. It would have been a quick win for Titan Opportunities (+79% return in a few months).
But we did our homework on the company's long-term potential and viewed that offer as undervaluing the business. In order to block the deal from going through at $75.25/share, Titan engaged with other active investment managers to agitate for a better valuation and commit to voting against the deal.
As a result, Titan helped secure a +22% higher acquisition offer for our clients. By leveraging our large and rapidly growing scale, we will continue to fight for better returns for our clients like we did with CLCT.
If you have any questions about the new position in GAN, please reach out to firstname.lastname@example.org and a member of our Investor Relations team will respond directly.
Thank you for the opportunity to continue managing your capital alongside that of myself, my team, and 20,000+ other Titan clients.
Co-CEO and Chief Investment Officer