Bragg Gaming Group lifted its shares by more than 14 per cent on Tuesday after announcing significant insider share purchases.
The company said that recent share purchases by management serve to demonstrate the confidence they have in the company’s “undervalued shares”, which had been languishing since the company ended its strategic review in November.
The review concluded that the ongoing execution of the company’s strategic plan is currently the best way to maximize value for shareholders.
“The recent insider purchases by Bragg’s management and board underscore our confidence in the company’s near-term potential,” said Bragg chief executive Matevž Mazij.
“We remain committed to creating shareholder value and liquidity opportunities over the next year through strategic transactions, or other value-enhancing initiatives. While the strategic review process has concluded, our dedication to pursuing these objectives heading into 2025 remains unchanged.”
“Furthermore, the strategic review process provided invaluable insights into the key factors potential acquirers prioritize when crafting bids that accurately reflect our intrinsic value,” Mazij added.
“We’ve identified key focus areas, such as stronger cash generation, increased revenue diversification, accelerated proprietary content growth, and enhanced margins. These are tangible, actionable targets that have been at the heart of our strategic initiatives, and we believe are achievable under our 2025 plan.”
This is expected to lead to sustained double-digit top line growth in 2025, as well as expanding bottom line margins and increased operational leverage, with formal financial guidance expected to be issued by the company in early 2025.
“The alignment between management’s insider purchases and our strategic roadmap demonstrates that we’re not just talking about value creation – we’re investing alongside our shareholders while actively pursuing paths to enhanced liquidity. While the formal review process has concluded, it has sharpened our focus on the metrics that matter most,” Mazij concluded.
“These concrete objectives, combined with our ongoing commitment to explore opportunities that could provide meaningful liquidity events for our investors, strengthen our position. As insiders, we clearly see the potential to see this value realized in 2025.”
The announcement caused shares in Bragg Gaming Group (TSE:BRAG) to gain 14.04 per cent on Tuesday to close at CA$5.28 per share.