Bragg Gaming secures new $6 million credit facility

TORONTO - Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), a global provider of iGaming content and technology with a market capitalization of $108 million, has announced the approval of a new Senior Secured Revolving Credit Facility. The credit line, amounting to up to USD 6 million, will be used to fund working capital, growth initiatives, and general corporate purposes. According to InvestingPro data, the company maintains a strong balance sheet, holding more cash than debt, which positions it well for this financial move.

The new facility will become available after the company repays its outstanding USD 2 million promissory note, which is expected to be settled from cash on hand in the coming weeks. The lender of the note, entities controlled by Doug Fallon, has consented to extend its maturity to July 15, 2025. This debt restructuring comes as the company demonstrates solid revenue growth of 9.76% over the last twelve months, with total revenue reaching $112.19 million.

Bragg Gaming has indicated that the terms of the new facility are more favorable than the existing note, offering lower borrowing costs and greater drawdown flexibility. This financial restructuring is part of the company’s strategy to bolster its growth initiatives and enhance its corporate vision.

The press release also includes forward-looking statements regarding the impact of the new debt facility and the anticipated benefits to the company’s strategic growth. However, these statements are based on management’s current expectations and are subject to various risks and uncertainties that could cause actual results to differ.

Bragg Gaming Group operates in the iGaming industry, providing proprietary and exclusive content as well as platform technology solutions to online and land-based gaming operators. The company’s reach extends to over 30 regulated markets globally, including the U.S., Canada, Latin America, and Europe. With a robust gross profit margin of 54.44% and its stock up over 32% in the past six months, InvestingPro analysis suggests the company is currently undervalued, presenting a potential opportunity for investors. For deeper insights and additional ProTips about Bragg Gaming’s financial health and growth prospects, explore the comprehensive Pro Research Report available on InvestingPro.

The information provided in this article is based on a press release statement from Bragg Gaming Group.

In other recent news, Bragg Gaming Group reported a revenue of €25.5 million for the first quarter, showing a 7.1% year-over-year increase. The company also achieved an Adjusted EBITDA of €4.1 million, marking a significant 19.7% rise from the previous year. Benchmark analysts have maintained their Buy rating with a $6.00 price target, citing the company’s strong financial performance and strategic focus on proprietary content. JMP analysts also reiterated their Market Outperform rating and $6.00 price target, noting that Bragg Gaming’s shares are undervalued compared to industry standards.

Additionally, Bragg Gaming Group appointed Holly Gagnon as the new Chair of its Board of Directors, succeeding Matevž Mazij. This leadership change is expected to support Bragg’s strategic growth initiatives. In a move to strengthen its financial position, Bragg repaid $5 million of its $7 million secured promissory note and extended the maturity date for the remaining balance. The company is also negotiating a new credit facility to secure more favorable terms.

Bragg’s recent partnership and equity investment in RapidPlay is anticipated to significantly enhance its presence in the Brazilian market, potentially contributing up to 10% of the company’s total revenue by 2025. This strategic expansion aligns with Bragg’s focus on proprietary content and regional market penetration. The company’s ongoing efforts in financial restructuring and market expansion are part of its broader strategy to maintain a robust financial structure and support its growth objectives in the iGaming industry.

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