TORONTO - Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), an international B2B iGaming content and technology provider with a market capitalization of approximately $102 million, has made a significant move to improve its financial standing by repaying $5 million of its $7 million secured promissory note. The company also announced the extension of the maturity date for the remaining $2 million until June 6, 2025. According to InvestingPro data, Bragg maintains a healthy balance sheet, holding more cash than debt, with a current ratio of 1.14.
This strategic financial decision is aimed at bolstering the company’s balance sheet and is reflective of its confidence in ongoing business operations. The company has shown recent momentum, with InvestingPro reporting an impressive 11% return over the past week, despite broader market challenges. According to Bragg’s CFO, Robbie Bressler, the repayment and extension are part of the company’s efforts to reduce its working capital requirements and secure more advantageous credit terms in the future. While the company maintains strong gross profit margins of 53%, analysts tracked by InvestingPro anticipate continued profitability challenges in the near term.
Bragg is currently negotiating a new revolving credit facility that is expected to provide better terms than the existing note, including lower borrowing costs and enhanced drawdown flexibility. This move is part of Bragg’s broader strategy to increase its financial agility and pursue growth opportunities.
The terms of the original promissory note remain unchanged, with the company intending to repay the outstanding $2 million balance by the amended maturity date.
The transaction involves entities controlled by Doug Fallon, a senior officer of the company, making it a related party transaction under Multilateral Instrument 61-101. Bragg is utilizing exemptions from certain requirements of this instrument as the fair market value of the note and the consideration for the lenders do not exceed 25% of the company’s market capitalization. The board of directors of Bragg has unanimously approved the extension of the note. Want deeper insights into Bragg Gaming’s financial health and future prospects? InvestingPro subscribers get access to exclusive analysis, including 6 additional ProTips and a comprehensive Pro Research Report that covers what really matters about this stock.
This financial restructuring is based on a press release statement and is part of Bragg Gaming Group’s ongoing efforts to maintain a robust financial structure and support its strategic objectives in the iGaming industry.
In other recent news, Bragg Gaming Group has released preliminary unaudited results for the year ending December 31, 2024, projecting a revenue increase of at least 9%, reaching EUR 102 million. The company has also provided guidance for 2025, forecasting revenue between EUR 117.5 million and EUR 123.0 million, indicating double-digit growth. Bragg’s EBITDA for the past year exceeded expectations at €4.7 million, driven by a robust margin of 17%, surpassing the anticipated €4.3 million. Analysts at JMP Securities have increased the price target for Bragg Gaming to $6.00, up from $5.00, while maintaining a Market Outperform rating. Meanwhile, Benchmark analysts have reiterated a Speculative Buy rating with a $6.00 price target, noting Bragg’s strategic initiatives in Brazil and North America as key growth drivers. The company’s strategic shift towards proprietary and exclusive content is expected to enhance profitability and reduce reliance on third-party content. Bragg Gaming’s collaboration with major U.S. operators like Caesars and DraftKings is poised to strengthen its market position. The company is also leveraging AI-driven platform improvements to boost profitability and ongoing AEBITDA growth.
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