Bragg Gaming Group (NASDAQ:BRAG; TSX:BRAG), an iGaming content and platform technology solutions provider, expects to issue, by way of a non-brokered private placement, up to 751,445 subscription receipts at a price of US$1.73 each for aggregate gross proceeds of up to approximately US$1.3 million, the company said Monday. The issue price of US$1.73 per subscription receipt is based on the closing price of the common shares of the company on the Nasdaq Stock Market LLC on May 29, 2026, it added.
In connection the offering and insider participation, Robbie Bressler, Chief Financial Officer, intends to subscribe for up to 86,705 subscription receipts; while both Morten Tonnesen, Chief Operating Officer and Thomas Winter, a director, intend to subscribe for up to 57,803 subscription receipts each, Bragg said.
Furthermore, gaming entrepreneur Matt Davey, Founder and Chairman of gaming-oriented investment fund, Tekkorp Capital, intends to subscribe for up to 115,607 subscription Receipts, it added. As previously announced, the company intends to appoint Davey as Non-Executive Chairman of its board upon completion of the transaction. Upon completion of the transaction and offering, Davey is expected to hold approximately 10% of the issued and outstanding shares on a non-diluted basis.
Upon the satisfaction of the release conditions, each subscription receipt will be automatically exchanged, without any further action or payment of any additional consideration therefor, subject to adjustments, for one share and one non-transferable common share purchase warrant, Monday's statement said. Each warrant will be exercisable into one share for a period of 36 months from the closing of the transaction at an exercise price of US$2.16 per warrant share, subject to acceleration as described.
The net proceeds from the offering will primarily be used for general corporate and working capital purposes.
Shares in BRAG were up $0.10 or 4.3% at $2.42 in Canada last Friday.