Former SB Tech Chief Richard Carter to Join Leadership of Bragg Gaming

Rhea-AI Summary

Bragg Gaming Group (OTC: BRGGF) has appointed Richard Carter, former CEO of SB Tech, as the Non-executive Chair of its Board. Carter will aid CEO Adam Arviv in expanding globally, particularly into the U.S. market. Bragg has also announced an extension for an earn-out payment of €10.55 million due to K.A.V.O. Holdings until January 31, 2021, with a final payment of €22 million to be converted into shares. The strategic moves aim to enhance Bragg's competitive edge in the online gaming industry.

Positive

• Appointment of Richard Carter as Non-executive Chair enhances leadership expertise.
• Focus on U.S. market expansion aligns with growth strategy.

Negative

• Extension of earn-out payments may indicate cash flow management issues.

Oryx CEO Matevž Mazij joins with Carter & Arviv and recommits to Bragg’s future.

TORONTO, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Bragg Gaming Group (TSXV: BRAG, OTC: BRGGF) ("Bragg" or the "Company") is pleased to announce today that gaming industry veteran and former SB Tech CEO Richard Carter has been appointed to the Board of Directors of the Company ("Board") as the Non-executive Chair.

Mr. Carter will advise and provide support to Chief Executive Officer Adam Arviv on developing a global strategy focused on partnerships with best-in-class brands, continued growth of their organic business and consideration of all accretive M&A opportunities. 

“Richard is a recognized authority in the online sport betting industry who was heavily involved in the merger between DraftKings and SB Tech,” noted Adam Arviv, Interim CEO of Bragg Gaming Group. “This appointment fits my mission as Interim CEO - to build a championship team that will execute on our plans to expand our current market overseas and to aggressively move into the U.S. market. We continue to be focused on recruiting additional top talent.”

Mr. Carter held the role of CEO of interactive sports betting solutions and services provider SB Tech for the past five years, until the company’s merger with digital sports entertainment and gaming company DraftKings through a three-way deal with Diamond Eagle Acquisition Corp in April 2020. The transaction was valued at US $3.3 billion and the combined entity has a current market cap of US $20 billion. SB Tech is the gaming engine behind DraftKings and transformed DraftKings from a daily fantasy site into the digital sports entertainment and gaming company that it is today.

“I’m excited to join Adam’s mission to make Bragg a major player in the gaming space,” Mr. Carter responded. “2020 has been an unbelievably successful year and we are eager to grow the business in the world’s largest gaming market, the U.S. Now is the right time to break into this market, and my priority is to make those connections that will lead to success.”

The current Board Chair of Bragg will now serve on the Board as the Vice-chair and Lead Director.

Oryx Earn-Out Extension
The Company also announces today that it has entered into an amending agreement with K.A.V.O. Holdings Limited, as vendor (the "Oryx Vendor"). Matevž Mazij will remain a Managing Director of Oryx Gaming International and its subsidiaries. The Amending Agreement provides that, among other things, the first earn-out payment of €10.55 million in cash, which was otherwise due to the Oryx Vendor on September 30, 2020 has been extended to January 31, 2021. The second and final earn-out payment owing to the Oryx Vendor with today’s fair market value of €22M will be converted into common shares of the Company by January 31, 2021, with the price of conversion being set in the range of $.68 - $.71, for 45.5M – 47M shares, subject to certain conditions, including the approval of the TSX Venture Exchange.

“I am thrilled to remain committed to the company’s people and operations,” said Mr. Mazij. “With Adam’s leadership and Richard’s expertise and vitality, I’m enthusiastic about the Company’s long-term growth and the continued creation of shareholder value.”

Pursuant to an investor rights agreement to be executed by the Company and the Oryx Vendor upon the satisfaction of certain conditions, the Oryx Vendor will receive nomination rights to appoint up to two additional nominees to the Board. In addition, effective immediately, Matevž Mazij will become an observer to the Board.

About Bragg Gaming Group
Bragg Gaming Group Inc. is a next generation gaming group with cutting-edge technology, leading brands and world-class management expertise, developing into a global gaming force. Formed by a team of gaming industry experts, Bragg's main portfolio asset is ORYX Gaming, an innovative business-to-business i-gaming platform, product aggregator, casino content, managed sportsbook and managed services provider.

Through this brand and targeted acquisitions, Bragg is focused on becoming a leader within the evolving global gaming industry. Learn more at https://www.bragg.games.

For Bragg Gaming Group, contact:
Yaniv Spielberg, CSO, Bragg Gaming Group
+1-647-800-2282
info@bragg.games

For media enquiries or interviews, please contact:
Lina Sennevall, Square in the Air
lina@squareintheair.com

For investor inquiries, please contact:
Tim Dawson, Bragg Gaming Group
+1-289-276-1167
tim@bragg.games

For US investor inquiries, please contact:
Laine Yonker, Edison Group
+1-646-653-7035
lyonker@edisongroup.com

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the impact of COVID-19 on the business of Bragg; the countercyclical growth of the business of Bragg; the regulatory regime governing the business of Bragg; the operations of the Company; the products and services of the Company; Bragg's customers; acquisition opportunities; the growth of Bragg's business, which may not be achieved or realized within the time frames stated or at all; and the anticipated size and/or revenue associated with the gaming market globally.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favorable terms; realization of growth estimates, income tax and regulatory matters; the ability of Bragg to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; the estimated size of the gaming market globally; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; and risks related to health pandemics and the outbreak of communicable diseases, such as the current outbreak of COVID-19.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

FAQ

What significant leadership change occurred at Bragg Gaming Group in 2020?

Richard Carter was appointed as Non-executive Chair to support the company's global strategy.

How will Richard Carter's appointment impact Bragg Gaming Group's strategy?

His expertise in online sports betting is expected to enhance Bragg's focus on partnerships and expansion into the U.S. market.

What are the details of the earn-out payment extension for Bragg Gaming Group?

The initial earn-out payment of €10.55 million has been extended to January 31, 2021, with a subsequent payment of €22 million to convert into shares.

What is the importance of U.S. market entry for Bragg Gaming Group?

Entering the U.S. market is crucial as it represents the largest gaming market, offering significant growth opportunities.