BRGGD: Bragg Buys Wild Streak Gaming for $30 Million in Cash and Stock

By Lisa Thompson

OTC:BRGGD

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On June 2nd Bragg (OTC:BRGGD) acquired Wild Streak Gaming based in Las Vegas for US$30 million comprised of an immediate payment of US$10 million in cash and $20 million in shares to be paid over three years starting 12 months from now. It is a content creation studio with 39 premium casino slot titles, including Dragon Power, used online as well as in casinos. Eight or nine Wild Streak employees will join Bragg and its CEO, Doug Fallon, will oversee Bragg’s global content creation strategy. This US team will also work on cross-selling and repackaging Bragg’s European content for the US market. In its FY2020 year, Wild Streak had US$1.05 million in revenue and US$233,000 of EBITDA all from its six land-based gaming platforms. In Q1 its revenue was US$487,000 in revenue and US$241,000 of EBITDA as it entered the online channel. We expect significant sequential improvement going forward. We are increasing our estimates slightly for 2021 and 2022 to reflect incremental earnings and EBITDA from this acquisition. We will not add in Spin until that closes, which is expected in Q4 2021.

Recap of Spin Acquisition

On May 12th, Bragg announced it would buy Spin Games LLC, based in Reno, for the same amount at Wild Streak—US$30 million comprised of US$10 million in cash and US$20 million of stock. US$5 million in stock will be issued on closing and the balance over the next three years. The transaction will close following final approval from gaming regulators and satisfaction of other customary conditions, which could be in late 2021. The company is EBITDA positive and this acquisition could add another $7 million to revenues in 2022 as well as increase the overall gross margins of the company. The head of Spin, Kent Young will take over operations in North America for Bragg. Spin already operates in North America and is generating revenues in New Jersey and Michigan and has Pennsylvania in the works.

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