Bragg Gaming Strengthens Financial Position with New Financing Deal
Bragg Gaming Secures Fresh Capital to Drive Expansion
Bragg Gaming Group has successfully arranged a new financing agreement with the Bank of Montreal (BMO), providing the iGaming technology company access to up to $6 million in fresh credit. This financial boost is poised to support Bragg Gaming’s ongoing growth and expansion efforts within the competitive US market.
New Financing Deal Enhances Capital Availability
The recent credit facility agreement with BMO supersedes a prior promissory note held by entities connected to Bragg’s founder, Doug Fallon. This new arrangement is expected to improve the company’s balance sheet while reducing its cost of capital. Backed by Bragg’s assets, the credit line is intended to cover working capital requirements and general corporate expenditures.
The financing is structured as a demand facility with a maturity set for one year after the deal’s execution, subject to extension at BMO’s discretion. Standard financial covenants are in place, including quarterly assessments of leverage and coverage ratios, ensuring financial discipline within the company.
Bragg anticipates drawing the funds primarily in Canadian dollars, with interest rates estimated between 5.9% and 7.9%, influenced by market conditions and the company’s financial metrics. Management expects the interest payments to be less than half of what was previously owed under its former debt, thereby freeing significant cash flow for strategic initiatives.
Optimistic Outlook for the Second Half of the Year
This financing aligns with Bragg’s aggressive push into the US market. In July, the company launched its Remote Gaming Server technology across New Jersey, Michigan, and Pennsylvania. Collaborating with Fanatics Casino, Bragg’s proprietary game content is now reaching players in three of the nation’s leading iGaming states.
CEO Matevž Mazij highlighted that this financing step is part of a larger strategy aimed at sustainable, profitable growth. The company has already achieved approximately EUR 2 million (about $2.35 million) in annualized operational synergies and remains confident in reaching its target of a 20% adjusted EBITDA margin by the latter half of 2025.
Addressing Challenges and Strengthening Market Position
Bragg has also taken strides to resolve the cybersecurity incident disclosed earlier in August. With the support of external security experts, the company successfully contained the breach, confirming no compromise of personal data or significant financial harm. With improved liquidity and operational concerns addressed, Bragg is well-positioned to solidify its role as a leading B2B online gaming technology provider.
