Bragg Gaming Group has secured a short-term extension for a portion of its US$7 million promissory note that was due on April 24.
The agreement between Bragg and its lenders, which are entities controlled by Bragg managing director Doug Fallon, will see the company repay $5 million of the outstanding promissory note, with repayment of the remaining $2 million extended until June 6.
The company said in a statement on Friday that it is in the process of securing a new revolving credit facility from a third-party lender, with the new facility expected to offer more favourable terms than the existing note, including lower borrowing costs and improved drawdown flexibility.
“This partial repayment and extension will further strengthen our balance sheet and reflects our confidence in the business,” said Robbie Bressler, chief financial officer at Bragg Gaming Group.
“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.”
The secured promissory note was issued on April 24, 2024, at an interest rate of 14 per cent per annum.
Bragg intends to repay the remaining $2 million balance on or before the amended June 6, 2025 maturity date.
Shares in Bragg Gaming Group Inc. (TSE:BRAG) closed 1.39 per cent lower at CA$5.66 per share in Toronto Friday.