Bragg Gaming Group has reached a new milestone thanks to a recent financing agreement with the Bank of Montreal (BMO) that will bolster the company’s financial position. This development will grant the iGaming technology provider access to fresh credit of up to $6 million. The funding will be instrumental in Bragg’s continued growth and expansion in the US.
The New Deal Should Free Up Significant Capital
Unveiled earlier this week, the BMO credit arrangement is replacing an existing promissory note owed to entities associated with Bragg founder Doug Fallon. According to the company, the move will strengthen its balance sheet and lower its cost of capital. Secured against Bragg’s assets, the credit arrangement should cover working capital needs and general corporate purposes.
According to company filings, the financing is structured as a demand facility, meaning that a repayment could be requested at any time. Otherwise, it matures one year after execution, with potential extension at BMO’s discretion. The deal includes all customary financial covenants, including leverage and coverage ratio requirements to be tested quarterly.
The ability to secure financing from a major North American bank underscores the confidence in our business and our long-term growth prospects.
Robbie Bressler, Bragg Gaming Group CFO
Bragg expects to draw most of the funds in Canadian dollars, with interest cost projections of 5.9% to 7.9%, depending on market conditions and changes in the company’s leverage profile. Management estimates that the company will pay less than half of what it previously owed under its Prior Note Debt on an annualized basis, freeing up cash for other strategic considerations.
H2 Projections Remain Optimistic
The financing news aligns with Bragg’s continued expansion in the US market. In July, the company launched its Remote Gaming Server technology in New Jersey, Michigan, and Pennsylvania, partnering with Fanatics Casino to bring its proprietary game content to more players across three of the most active iGaming states.
Matevž Mazij, Bragg’s CEO, noted that the deal was part of a broader effort to position the company for profitable growth. He added that the company has already realized EUR 2 million ($2.35 million) in annualized synergies and remains on track to meet the 20% adjusted EBITDA margin target in the second half of 2025.
Securing this BMO facility represents a critical milestone in our strategic plan to strengthen Bragg’s financial foundation and accelerate value creation for our shareholders.
Matevž Mazij, Bragg Gaming Group CEO
Bragg used the occasion to move on from the cybersecurity breach first disclosed in August. Working with external security experts, the company claims to have contained the incident, with no evidence of compromised personal data or material financial impact. With additional liquidity and operational headwinds addressed, Bragg will continue to cement its position as a key B2B supplier in the online gaming space.