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Highlights
Bragg Gaming entered into a financing agreement with BMO, providing access to credit facilities of up to US$6 million.
The new BMO Facilities replaced and fully repaid the Company’s prior promissory note indebtedness.
Bragg reported that its recent cybersecurity incident has been resolved with no material financial or operational impact.
Bragg Gaming Group (NASDAQ:BRAG) (TSX:BRAG) announced it has entered into a new financing agreement with the Bank of Montreal (BMO). Under the agreement, BMO has made available certain credit facilities to the Company in a maximum aggregate amount of up to US$6 million.
Replacement of Prior Debt
In connection with the closing of the BMO Facilities, Bragg has fully repaid the outstanding promissory note with entities controlled by Doug Fallon. The new credit facilities replace the prior indebtedness.
Facility Terms and Borrowing Costs
The BMO Facilities are secured by a first-ranking security interest over all of the assets of Bragg and certain key subsidiaries. The facilities are uncommitted and repayable upon the earlier of a demand by BMO, an insolvency event, or the one-year anniversary of closing, unless extended at BMO’s discretion.
Bragg expects to draw funds in Canadian dollars. Estimated borrowing costs will range from 6.9% to 7.9% for Prime-based loans and from 5.9% to 6.9% for CORRA-based loans, depending on draw period and leverage ratio. Standby fees on the unused portion of the revolving facility will range from 0.75% to 1.75% per annum.
According to the Company, annualized borrowing costs under the BMO Facilities are projected to be less than half of those under the prior promissory note arrangement.
Business Outlook
Bragg noted that the financing agreement follows recent leadership additions in artificial intelligence and innovation and expanding partnerships with operators including Fanatics and Hard Rock Digital. The Company stated it remains focused on pursuing growth opportunities and expanding its proprietary content and technology pipeline.
Cybersecurity Incident Update
Bragg also provided an update on a previously disclosed cybersecurity incident that was initially detected on August 16, 2025.
The Company reported that it took immediate steps to mitigate the situation and engaged independent cybersecurity experts to investigate and resolve the issue. Based on its review, Bragg has determined that no personal information was compromised and that operations were not disrupted.
The incident has had no impact on revenue or profitability, and the cost of the response is not expected to have a material effect on the Company.
