Bragg Gaming Group Announces Closing of Oryx Gaming Acquisition and Will Debut on the TSX Venture Exchange Under the Symbol ‘BRAG’

Completion of the recently announced Oryx Gaming acquisition and rebranding to Bragg signals a new strategic direction for the former Breaking Data Corp.

Breaking Data Corp. will make its trading debut on the TSX Venture Exchange on 27 December 2018 under the ticker symbol “BRAG”.  With the completion of the recently announced acquisition of Oryx Gaming International LLC, the company formerly known as Breaking Data Corp. will now be known as Bragg Gaming Group Inc. The change represents a significant shift in strategic direction for the Company, including a new executive team and board of directors.

Bragg’s new executive team will be led by renowned gaming executive Dominic Mansour as CEO, and will include CFO Ashkay Kumar. Matevz Mazij will remain as CEO of Oryx. Mr. Mansour will also join the Board of Directors of Bragg Gaming Group.

“We’re taking the next step in the evolution of the Company,” said Dominic Mansour, CEO of Bragg Gaming Group. “We have an elite team in place and we’re already seeing success in our transformation into a next generation gaming group.  The acquisition of Oryx has reinvigorated the business, with multiple new clients signing and going live since the announcement, including a momentous content partnership with GVC, one of the world’s largest sports betting and gaming groups.”

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“We’re also excited about the launch of our new GIVEMEBET platform,” continued Mr. Mansour. “It just completed beta and is now live.  We’ve initially launched in the UK market, and based on our very positive initial findings, we anticipate expanding GIVEMEBET in the near future.”

Bragg will leverage this audience to increase overall media revenue and to introduce over 1.1 million of GIVEMESPORT’s UK-based users, who also visit betting sites every month, to Bragg’s betting site GIVEMEBET. Bragg has also sold the unprofitable AI division, saving over C$1.2 million annually, and has closed down its branded content division, Formation, realizing C$.75 million in annual cost savings. These changes are not expected to have an adverse impact on sales.

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Release of Escrow Funds

Bragg now has funds on deposit previously held in escrow, resulting from the closing of a brokered best efforts private placement offering (the “Offering“) of subscription receipts (each, a “Subscription Receipt“). On closing of the Offering, the Company issued a total of 27,058,802 Subscription Receipts at a price of C$0.51 per Subscription Receipt for gross proceeds of approximately C$13,800,000. The completion of the Offering was previously announced in a press release of the Company dated November 29, 2018.

The Amalgamation and Oryx Acquisition Details

On December 20, 2018, the Company completed the acquisition of AA Acquisition Group Inc. effected via a “three-cornered amalgamation” of AAA with a wholly-owned subsidiary of the Company. On closing of the Amalgamation, the Company acquired of all of the issued and outstanding securities of AAA in exchange for the issuance to AAA shareholders of 20,999,994 common shares of the Company on a pro-rata basis. Upon completion of the Amalgamation, the amalgamated entity continued under the corporate name “Bragg Oryx Holdings Inc.” with all of the property, rights, privileges and assets of AAA.

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AAA is a special purpose vehicle incorporated on April 12, 2018 under the Business Corporations Act (Ontario), with the primary purpose of acquiring the share capital, trade and assets of Oryx and its two wholly-owned subsidiaries – Oryx Gaming Ltd., a company incorporated in Malta on March 11, 2013, and Oryx razvojne stortive d.o.o, a company incorporated in Slovenia on April 4, 2014.

On December 20, 2018, AAA acquired all of the issued and outstanding membership interests of Oryx for consideration in the aggregate of €7.5 million in addition to earn-out payments, as follows:

As a result of the Oryx Acquisition and the Amalgamation, the Company will carry on the business previously carried on by Oryx.

Shares for Debt

The Company has settled certain debts with directors and officers of the Company by the issuance of 1,128,386 common shares of the Company at an issuance price of $0.51 per share.  The debts include unpaid directors and management fees, as well as severance expense for a departing officer.  This issuance of shares was approved by disinterested shareholder approval at the Company’s shareholder meeting held on November 9, 2018.

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