Bragg Gaming Group Inc. (NASDAQ:BRAG) is one of the best long term penny stocks with huge upside potential. On October 17, Citizens JMP downgraded Bragg Gaming to Market Perform from Outperform without a price target. This sentiment was announced as the firm noted that the company’s shares currently trade at a 0.5x discount to peers, given the uncertain outcome and EBITDA impact tied to the loss of a high-value customer (BetCity) and tax changes. Is Bragg Gaming (BRAG) One of the Best Long Term Penny Stoc ...

Core Insights - Bragg Gaming Group has secured a new financing agreement with the Bank of Montreal, providing credit facilities of up to US$6.0 million to support working capital and corporate needs [1][2][3] - The new credit facilities replace prior promissory note indebtedness, marking a strategic shift in the company's financial strategy [2][3] - The company aims to strengthen its financial foundation and accelerate shareholder value creation through this new partnership [7][10] Financial Details - The BMO Facilities are secured by a first-ranking security interest over all company assets and are repayable upon demand or after one year unless extended [3][4] - The expected borrowing costs for the BMO Facilities range from 6.9% to 7.9% for Prime-based loans and 5.9% to 6.9% for CORRA-based loans, with standby fees on unused portions between 0.75% and 1.75% per annum [5][6] - Management anticipates that the annualized borrowing costs will be less than half of the previous note debt [6] Strategic Focus - The company is prioritizing margin and cash generation over lower-margin revenue, with a target of achieving a 20% Adjusted EBITDA margin by the second half of 2025 [7] - Recent leadership additions in AI and innovation, along with partnerships with operators like Fanatics and Hard Rock Digital, are expected to drive growth opportunities [8] - The company has realized EUR 2 million in annualized synergies and is focused on sustainable, margin-accretive growth [7][9] Cybersecurity Update - Bragg Gaming Group has resolved a cybersecurity incident detected on August 16, 2025, with no indication of personal information being affected [11][12] - The company has assured customers regarding the security of its game titles and reported no negative impact on revenue or profitability from the incident [12][22] - Knowledge gained from the incident has been applied to enhance cybersecurity defenses [13]