Bragg Gaming Closes Previously Announced Bought Deal
Bragg Gaming Group (TSXV: BRAG) (OTC: BRGGF) (“Bragg” or the “Company“) is pleased to announce the Company has closed its previously announced “bought deal” short form prospectus offering of units (“Units“) of the Company (“Offering“) at a price of $0.70 per Unit (the “Offering Price“) for total gross proceeds of $20,700,575, which included the exercise of the over-allotment option in full. Under the Offering, 29,572,250 Units were sold by a syndicate of underwriters including, Cormark Securities Inc. and Canaccord Genuity Corp., as co-bookrunners, Haywood Securities Inc., Paradigm Capital Inc. and Eight Capital (collectively, the “Underwriters“).
“I’d like to thank our financial partners and investors for their support in completing this transaction,” said Adam Arviv, Interim CEO of Bragg. “This deal is the next step in our continued transformation and will allow us to look ahead to future expansion and growth.”
Each Unit consists of one common share in the capital of the Company (a “Common Share“) and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a “Warrant“). Each Warrant will entitle the holder to purchase one Common Share at a price of $1.00 at any time prior to 4:30 p.m. (Toronto time) on the date that is 36 months following the closing of the Offering. At the Company’s option, if the Company’s daily volume weighted average Common Share price is greater than $1.50 for at least ten consecutive trading days, then the Company may accelerate the exercise period of the Warrants to a period ending at least 30 days from the date notice of such acceleration is provided to the holders of Warrants. To exercise this option, the Company must provide written notice to the holders of the Warrants, supplemented by a news release that sets out the accelerated expiry date.
As consideration for their services, the Underwriters received a cash commission equal to 6.0% of the gross proceeds of the Offering. As additional consideration, the Company issued a total of 1,774,335 broker warrants to the Underwriters. Each broker warrant is exercisable into one Unit at the Offering Price for a period of 3 years from the closing of the Offering.
The Company intends to use the net proceeds of the Offering to satisfy a portion of the outstanding the first earn-out payment to K.A.V.O. Holdings Limited (“KAVO“) in partial consideration for a previously completed acquisition of all of the issued and outstanding membership interests of its principal subsidiary, Oryx Gaming International LLC, a turnkey gaming solution supplier (“Oryx“).
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