Bragg shares surge as investor calls for strategic alternatives

Shares in Bragg Gaming Group gained almost 25 per cent on Wednesday after publication of an open letter calling for a potential sale of the business.

Jeremy Raper of Raper Capital published the letter as the second largest disclosed investor in the company with a beneficial interest in 375,000 shares.

In the letter he calls on Bragg chair and CEO Matevz Mazij to consider all strategic alternatives for the company, including a full or partial sale of assets, in order to maximise shareholder value.

“In almost five years since the transformational Oryx acquisition, Bragg has grown revenue by almost 4x and Adjusted EBITDA by 14x,” Raper says. “And yet despite this impressive record of both top- and bottom-line growth, the stock price is somehow 25 per cent lower than then!”

He argues that the markets are not properly valuing the company and believes the best way to crystalise a proper return on investment is through a third-party sale.

“Crucially, I am highly confident that third-party interest in Bragg’s assets, and platform, would be robust,” he says. 

“What you have built, first at Oryx and now at Bragg, constitutes a highly desirable, unique suite of iGaming content and distribution assets that, for various reasons, has been ignored by the public markets for far, far too long – a stasis that, if uncorrected, may actually comprise the Company’s continued bright growth prospects and risk much of the value you have created thus far.”

Shares in Bragg Gaming Group Inc. (TSE:BRAG) gained 24.24 per cent to close at $7.79 per share in Toronto Wednesday.