Bragg Gaming Aiming for Nasdaq Listing, Planning Reverse Split

Posted on: March 29, 2021, 08:16h. 

Last updated on: March 29, 2021, 10:43h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Canadian gaming technology provider Bragg Gaming (OTC:BRGGF) is eyeing a listing on the Nasdaq Stock Market.

Bragg Gaming
The Nasdaq market site in New York. Bragg Gaming is hoping to list there. (Image: Nasdaq)

The Toronto-based company may engineer a reverse split to make that happen. Currently, the company’s US-listed shares trade over-the-counter and go for $1.84 (at this writing). That price is well below the Nasdaq’s requirements for newly listed entities.

In a filing with Canadian regulators, Bragg confirms it filed an application to list its common stock on the Nasdaq, and that it’s holding a shareholders meeting on April 28. The company is asking investors to approve a “share consolidation, if necessary, in order to demonstrate compliance with the applicable Nasdaq initial listing price requirement.”

The circular seeks authorization for a range of ratios up to one share for 15 shares,” said the company. “In the event a share consolidation is required to meet the applicable Nasdaq listing requirement, the company will delay implementation of the consolidation until that it has demonstrated to Nasdaq compliance with all other requirements for initial listing.”

In layman’s terms, Bragg could execute a 1-for-15 reverse split. But that transaction could be delayed so the firm meets the exchange’s other listing demands. Based on today’s prices, that share split would vault Bragg stock to a $27.75 handle.

Bragg Using Familiar Strategy

In attempting to graduate to the Nasdaq, Bragg is deploying a plan similar to that of another Canadian gaming company.

Last month, Score Media and Gaming Inc. (NASDAQ:SCR), the Canadian sports wagering company also known as theScore, reverse split its shares with the aim of gaining a Nasdaq or the New York Stock Exchange (NYSE) listing.

That company approved a 1-for-10 reverse split prior to raising $162 million in gross proceeds in a Feb. 25 initial public offering. Like Score Media did prior to listing on a major US exchange, Bragg recently graduated to the Toronto Stock Exchange from the TSX Venture Exchange.

In a reverse split, the price of the stock rises, but the value of investors’ stakes and the operator’s market capitalization does not change. Bragg’s current market value is $307.59 million. The company said its reverse split, assuming it comes to pass, will occur five days prior to it joining Nasdaq.

Bragg Looking to Capitalize on Big Growth

Bragg, which carries $39.74 million in debt, provides internet casino and sportsbook technology services to gaming operators via its ORYX Gaming brand.

Those segments are taking off in significant fashion in the US, underscoring Bragg’s desire to gain more exposure to its neighboring market. That objective may be aided with a Nasdaq listing, because the stock will be available to a wider swath of institutional investors, and the company will increase its ease of accessing capital.

One thing is clear: Bragg is growing. The company said its fourth-quarter sales jumped 75.7 percent year-over-year, while its full year revenue for 2020 increased 74.6 percent. Bragg delivered 58.4 percent compound annual top line growth since 2018.