Bragg Gaming Kinds Committee To Mull Sale

Posted on: March 26, 2024, 10:10h. 

Final up to date on: March 26, 2024, 10:10h.

Bragg Gaming (NASDAQ: BRAG) at this time introduced the formation of a particular committee to discover strategic alternate options, together with a possible sale.

Bragg Gaming
Bragg Gaming inventory highlighted on the Nasdaq market website. The corporate introduced the formation of a particular committee that might discover a sale. (Picture: Nasdaq)

Comprised of board members, the committee shall be led by Director Don Robertson and arrives with the small-cap gaming top off 44.54% over the previous 12 months. Canada-based Bragg beforehand introduced a strategic overview in 2021, however that plan didn’t point out a sale and didn’t generate a lot in the best way of notable headlines.

The particular committee has been appointed to contemplate and discover strategic alternate options, which can embrace the sale of the Firm or of its property, a merger, financing, additional acquisitions, or different strategic alternate options,” in line with an announcement issued by Bragg.

The gaming firm added that there is no such thing as a particular timeline for the strategic overview to be accomplished and that it’s attainable no transaction will materialize.

Investor Beforehand Pushed for Bragg Gaming to Mull Sale

Information of Bragg forming the particular committee to judge a possible sale arrived about 5 months after Raper Capital founder Jeremy Raper, who oversees entities managing 375K shares of the gaming firm, penned a letter to Bragg CEO and Chairman Matevz Mazij, excoriating the corporate for slack share efficiency.

At the moment, Raper famous a sale by Bragg might deliver “certainty of worth” for traders, significantly as a result of the inventory traded at depressed multiples relative to rivals. In a put up on X (previously Twitter) earlier at this time, Raper applauded Bragg’s robust fourth-quarter and 2023 outcomes, although he has but to touch upon the formation of the advert hoc committee.

The announcement by Bragg might be effectively timed as a result of analysts broadly consider iGaming and sports activities betting consolidation will enhance with specific emphasis on know-how. That would indicate quite a lot of suitors might be eager about Bragg.

Bragg “is not going to be offering additional touch upon the standing of the strategic overview course of presently and intends to supply additional updates as circumstances warrant and in accordance with relevant securities legal guidelines. Whereas the strategic overview course of is ongoing, the Firm’s administration stays dedicated to executing the Firm’s technique and marketing strategy with the complete help of the Board,” the agency added within the press launch.

Precedent for Bragg Sale

Over the previous 20 months, there have been greater than half a dozen acquisitions of business-to-business (B2B) or business-to-consumer (B2C) iGaming corporations, of which Bragg one.

Bragg might unlock important worth traders in a sale, assuming a beneficiant premium is obtainable, as a result of these transactions befell at a mean enterprise worth to earnings earlier than curiosity, taxes, depreciation, and amortization (EV/EBITDA) ratio of 15x. That’s greater than double the place Bragg trades at this time.

Final 12 months, Raper famous that if Bragg traded at 12x EV/EBITDA, the shares can be value $13.50. The inventory resided at $5.30 at this writing.

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