Bragg chairman reassures shareholders on financial position

Bragg Gaming Group Chairman Matt Davey sought to reassure shareholders about the company's financial position. Davey said on the third-quarter earnings call that the board and key investors are ready to provide the company with financial flexibility.

Davey acknowledged that shareholders are unhappy with the company's recent performance and share price. He said the board is aligned with investors and is committed to ensuring the business has enough financial room to carry out its plans.

Third-quarter results were weak. Revenue fell 23 percent year on year, and adjusted EBITDA dropped 33 percent to 3 million euros. At the end of September, the company had only 2.5 million euros in cash.

Chief Financial Officer Robbie Bressler acknowledged that the company needs to increase its cash generation. Bressler pointed to the gap between development investments and cash from operations and described it as a core priority that will be tracked over the next few quarters. The company has a revolving credit agreement with Bank of Montreal with a limit of 6 million dollars, and as of the end of September, 5.2 million Canadian dollars had been drawn from it. Bressler said they will look for the most favorable terms for additional equity capital and also recalled the recent private placement in which board members and management took part.

Interim CEO Morten Tonnesen took on the role last week after Matevž Mazij stepped down. Tonnesen said that rebuilding investor confidence depends on improving cash generation.