Toronto's Bragg Gaming Group had a busy Friday. The multinational B2B provider of igaming content and technology announced a debt financing agreement with the Bank of Montreal and gave an update on a cyber intrusion that occurred last month.
Agreement on Financing with BMO
The business stated in August that it thought the data leak only affected Bragg's internal computer system. Bragg stated that there was no sign that any personal information had been compromised and that the breach didn't seem to have damaged Bragg's capacity to function.
The hack happened on August 16. The business declared on Friday that it now regarded the problem as resolved after taking action to lessen any possible effects of the intrusion and enlisting the help of outside cybersecurity specialists.
Hard Rock Deals and Fanatics
The business said that nothing had changed since the August announcement. The company's capacity to operate has not been impacted, and there has been no evidence that personal information has been compromised. Customers were also given assurances about the security of gaming titles.
Bragg has access to a USD $6 million credit facility because to the financial agreement with BMW. The agreement was made in relation to the full repayment of a promissory note held by Doug Fallon, the founder of Wild Streak Gaming and Bragg's Group Director of Content.
Stategic Plan Includes Focus on U.S. Market
“This new credit facility strengthens our balance sheet and provides us with a flexible capital structure to execute our strategic plan,” said Robbie Bressler, CFO of Bragg Gaming Group. “The ability to secure financing from a major North American bank underscores the confidence in our business and our long-term growth prospects. We look forward to a long and successful partnership with BMO.”
According to a statement, management thinks that the terms of the BMO loan would help its expansion by lowering its annualized borrowing costs to less than half of its previous note debt.
Previously Announced Brazil Launch
“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,” said Matevž Mazij, CEO of Bragg Gaming Group. “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. The Company is prioritizing margin and cash generation over lower-margin revenue, and synergies realized post-quarter end to become a leaner operation.
“We’ve already realized EUR 2 million in annualized synergies and are on track to achieve our 20% Adjusted EBITDA margin target for the second half of 2025.”
Mazij cited recent partnerships with operators such as Hard Rock Digital and Fanatics as proof of growth in the United States through momentum in the pipeline of proprietary technology and content. Additionally, the business has already declared its intention to enter the nascent Brazilian igaming sector.
Better Financial Flexibility
“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,” Mazij said. “We remain committed to maximizing shareholder value as we build sustainable, profitable growth and ensure our strong operational performance translates into appropriate market valuation.”
Bragg offers player account management technology in addition to proprietary and exclusive gaming content, like as Indigo Magic, Atomic Slot Lab, and Wild Streak Gaming, to operators. The Bragg HUB content distribution platform is used to distribute games created using Bragg's remote games server ("RGS") technology.