Bragg shares gain more than 9% in Toronto as Matt Davey takes over as board chairman following closing of transformational acquisition
Bragg Gaming Group is positioned to expand its presence in the United States after completing its acquisition of Drayton International.
Following an initial agreement in May, Bragg has now completed the acquisition for an aggregate consideration of $9 million, satisfied entirely through the issuance of 4,500,000 new shares.
The transformational deal positions Bragg to expand its presence in the regulated US sports betting and horse racing markets through Drayton’s established technology and operational capabilities.
Drayton’s portfolio includes equity interests across a number of licensed gaming studios, broadening Bragg’s access to proprietary game content and features that can be integrated into bragg’s existing platform, Hub and PAM offering.
In addition, the acquisition enables Bragg to enter the regulated US advance deposit wagering (ADW) market.
“Drayton gives bragg a direct, credible entry into the US advance deposit wagering (ADW) market, a diversified portfolio of studio equity interests and proprietary distribution infrastructure that materially expands our content scale,” said bragg CEO Matevz Mazij. “Beyond this transaction, our studios continue to expand the breadth of games and features across the platform, including the early application of AI-assisted development tools to help us bring new content to market faster.
“We see real long-term potential here, and we intend to be direct with shareholders and the market as that work matures.”
Following closing of the transaction, Tekkorp Capital founder and chairman Matt Davey has joined Bragg’s board as non-executive chairman, succeeding Holly Gagnon.
Through Tekkorp, Davey currently holds approximately 10.09 per cent of the issued and outstanding common shares of Bragg on a non-diluted basis.
“Matt is highly respected throughout our industry and brings deep strategic, operational and governance experience,” said Gagnon, who will remain on the board as an independent director. “His track record speaks for itself, but what stands out to me is that he’s not just advising bragg, he’s now genuinely invested in where we go next.
“As we enter this next phase following the transaction, we’re glad to have that experience and perspective on the board as we focus on execution and long-term value for shareholders.”
The board has extended its sincere appreciation to Gagnon for her dedication and contributions as chair and for her leadership in facilitating this transaction and a smooth board transition.
The company also congratulated Gagnon on her induction into the American Gaming Association’s Gaming Hall of Fame Class of 2026.
Gagnon will be inducted into the Gaming Hall of Fame Class of 2026 later this year during the G2E Las Vegas event.
“bragg has built the foundations needed for a powerful platform and distribution business: real content, real technology, and real licences in highly regulated markets,” said Davey. “The next chapter is about disciplined execution – focus, balance sheet strength, operating cash flow, and revenue growth driven by letting the product do the talking.
“I’ve built businesses through this phase before, and I look forward to supporting the board and management as they do it here.”
Bragg also confirmed the resignation of Matevz Mazij from the board of directors.
Mazij’s resignation follows his offer to resign in accordance with the company’s majority voting policy after failing to receive a majority of votes cast for his re-election at Bragg’s Annual General Meeting last month.
The board has accepted resignation of Mazij, who will remain chief executive efficer of Bragg.
Shares in Bragg Gaming Group Inc (TSE:BRAG) closed 9.39 per cent higher at CA$2.33 per share in Toronto Wednesday.