Form 4: Golden Matrix Group Insider Aleksandar Milovanovic Acquires 1,000,000 Shares Through Debt Conversion

Aleksandar Milovanovic, a member of a 10% reporting group of Golden Matrix Group, Inc., acquired 1,000,000 shares of common stock through debt conversion and received cash payment for a portion of a convertible note.

Summary

• Aleksandar Milovanovic, reported changes in beneficial ownership of Golden Matrix Group, Inc. (GMGI) shares.
• On October 1, 2024, Milovanovic acquired 1,000,000 shares of common stock at $2 per share through the conversion of $2,000,000 of contingent cash consideration.
• This conversion was pursuant to an Amended and Restated Sale and Purchase Agreement of Share Capital dated June 27, 2023, and a Debt Conversion Agreement.
• Milovanovic also holds a Deferred Cash Convertible Promissory Note, which can be converted into common stock at a price based on either a discounted average closing price or $3.00, with a floor of $2.00 per share.
• The maximum number of shares issuable upon conversion of the note is 352,584.
• Milovanovic is part of a voting group that collectively owns more than 10% of the outstanding shares of GMGI.
• He disclaims beneficial ownership of securities owned by other members of the voting group.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The insider's acquisition of shares through debt conversion could be seen as a positive sign, but the potential dilution from the convertible note and the voting agreement introduce some uncertainty.

Positives

• The debt conversion simplifies the company's balance sheet by converting liabilities into equity.
• The insider's increased equity stake could signal confidence in the company's future prospects.

Risks

• The potential conversion of the promissory note could dilute existing shareholders' equity.
• The voting agreement could concentrate voting power and potentially influence company decisions.

Industry Context

Insider transactions are closely watched by investors as they can provide insights into management's confidence in the company's prospects. A purchase can be seen as a positive signal, while a sale may raise concerns.

Stakeholder Impact

• Shareholders may experience dilution if the convertible note is exercised.
• The voting agreement could impact the influence of other shareholders.

Key Dates