Bragg Gaming Secures New $6M Credit Facility with Bank of Montreal, Cuts Borrowing Costs

A More Flexible and Cost-Effective Capital Structure

The primary benefit of the new BMO facility is a dramatic reduction in the company’s borrowing costs. According to Bragg’s management, the new arrangement will cut the company’s annualized borrowing costs by more than half compared to its previous debt.

“We are very pleased to establish this new relationship with the Bank of Montreal,” said Robbie Bressler, CFO of Bragg Gaming Group. “This new credit facility strengthens our balance sheet and provides us with a flexible capital structure to execute our strategic plan.”

The ability to secure this type of financing from a major bank is also a significant vote of confidence in the company’s business and its long-term growth prospects.

A “Critical Milestone” in a Broader Strategic Shift

The new financing agreement is not just a financial maneuver; it is a “critical milestone” in Bragg’s broader strategic plan to strengthen its financial foundation and accelerate value creation for its shareholders.

“With our cybersecurity incident contained and our borrowing costs cut by more than half, we are laser-focused on executing our strategic shift toward higher-quality earnings,” said Matevž Mazij, CEO of Bragg Gaming Group.

This strategic shift involves prioritizing profit margin and cash generation over lower-margin revenue. The company is in the process of becoming a “leaner operation,” having already realized €2 million in annualized synergies. Mazij stated that Bragg is on track to achieve its target of a 20% Adjusted EBITDA margin for the second half of 2025.

An Update on the Cybersecurity Incident

The financing news was accompanied by an update on the cybersecurity incident that the company first detected in August. Bragg reported that, with the assistance of independent experts, it has followed industry best practices and now considers the incident to be resolved.

Crucially, the company stated that there is no indication that any personal information was affected and that the breach has had no impact on its ability to continue its operations. Bragg also does not expect the cost of responding to the incident to have a material financial impact.

A Foundation for Future Growth

With the new financing in place and the cybersecurity incident behind it, Bragg is now focused on executing its growth strategy. The company has recently made key leadership additions in the areas of AI and innovation and has expanded its partnerships with major operators like Fanatics and Hard Rock Digital.

“With improved financial flexibility, a strengthened operational foundation, and clear milestones ahead, we believe we have the right strategy and team in place to unlock Bragg’s full potential,” said Mazij. He reaffirmed the company’s commitment to building “sustainable, profitable growth” and ensuring its operational performance translates into an appropriate market valuation.