Bragg Gaming Group Cuts Debt and Extends Loan Term
Bragg Gaming Group Inc. announced a deal to pay off $5 million of its $7 million secured promissory note and extend the remaining $2 million’s maturity to June 6, 2025.
A Smart Financial Move
This step, part of a plan to boost financial flexibility. “This partial repayment and extension will further strengthen our balance sheet and reflects our confidence in the business,” said Robbie Bressler, CFO of Bragg.
The company, known for powering online casino platforms like Bet365, is also securing a new revolving credit line with better terms.
“With a reduced need for working capital support, we’re focused on finalizing a new facility to secure standby credit, allowing for greater financial flexibility and enabling us to pursue strategic growth opportunities,” Bressler added.
With $8.7 million in Q3 2024 cash, Bragg’s move could save $200,000 in interest.
Strengthening the Balance Sheet
Bragg’s $5 million repayment slashes its debt load, while the $2 million extension, tied to officer Doug Fallon’s entities, complies with Canada’s MI 61-101 rules.
The deal, unanimously approved by Bragg’s board, avoids formal valuation since the note’s value is under 25% of Bragg’s $90 million market cap. This keeps Bragg’s $30 million 2024 revenue stream, up 14% year-on-year, on solid footing/
The new credit line, expected by Q2 2025, offers lower borrowing costs than the 10% note rate. Bragg’s 300 casino games and turnkey solutions, used in markets like Michigan, drive $10 million in annual free cash flow.
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