Real Luck Group Provides Corporate Update and Announces Restructuring of Operations Following Termination of LOI
- The potential transactions under consideration since September 7th are not viable and not in the best interest of the Company and its shareholders.
- The Company has been unable to secure the required capital injection due to challenging conditions in the capital markets.
- B2C platform, Luckbox.com, will be suspended and the Company will focus on more cost-effective B2B activities.
- Luckbox players can withdraw their funds as per the requirements of the Online Gambling Regulation Act 2001.
- Real Time Game Services Ltd will be wound up, but other subsidiaries are unaffected.
- The restructuring is expected to result in a new corporate structure with no debt and minimal cash burn.
- The Company is exploring other strategic and operational options, including a potential merger, acquisition, or capital raise.
- None.
Calgary, Alberta and Isle of Man, Isle of Man--(Newsfile Corp. - October 5, 2023) - Real Luck Group Ltd. (TSXV: LUCK) (OTCQB: LUKEF) ("the Company'') and its subsidiary companies doing business as "Luckbox," an award-winning provider of licensed, real money esports betting, sports betting and casino games announces an update on the Company's September 7th Merger or Acquisition Letter of Intent ("LOI") and its ongoing business operations.
Following a thorough examination and assessment of the proposed Merger or Acquisition, the Company has determined that the potential transactions under consideration since the announcement on September 7th are not viable and are not currently in the best interest of the Company and its shareholders. Furthermore, despite the significant growth the Company has experienced since the start of 2023 and its well documented and defined requirement for additional funding to support this continued expansion, it has been unable to secure the required capital injection due to persistently challenging conditions in the capital markets.
The Company will now look to restructure its operations. This means an immediate suspension of betting and player registrations on its B2C platform, Luckbox.com and a shift towards the more cost effective B2B activities of the Company. B2C has generated all the Company's revenue to date, but achieving profitability will require significantly more capital than launching the B2B platform.
All Luckbox players will continue to be able to withdraw their funds, which are segregated from the Company's operational funds and will be supported as per the requirements of the Online Gambling Regulation Act 2001.
The Company has also resolved to wind up Real Time Game Services Ltd ("RTGS")., an indirect material subsidiary in the Isle of Man ("IOM") that services the group and holds agreements with the majority of the B2C service providers, contractors and employees. In this regard, insolvency practitioners have been engaged in the IOM and the process to wind up RTGS has started.
The insolvency is isolated to RTGS and no other subsidiaries of the Company are affected, including the license holder Real Time Games Holding Ltd.
The restructuring is expected to be completed this year and will result in a new optimized and better focused corporate structure with no debt and minimal cash burn.
The Company also continues to explore other strategic and operational options, including but not limited to a potential merger, acquisition, or a capital raise for growing its B2B or restarting B2C operations. Any potential transaction which is determined by the board of the Company to be in the interest of the Company and its shareholders may be, ultimately, contingent upon approval from the TSX Venture Exchange ("TSXV") and the Company's shareholders, as applicable. There can be no assurance that this process will result in any specific financial transaction. The Company does not plan to provide updates on the status of the transaction unless there are material developments to report.
Jo-Anne Archibald (Company Secretary) and Benn Timbury (COO) have both resigned as officers for the Company during September 2023. Benn Timbury continues to support the Company as an adviser. The Directors of the Company remain unchanged.
About Luckbox
The Company is an award-winning betting company that offers legal, real-money betting, live streams, and statistics on all major esports and sports on desktop and mobile devices. The Company has a Business-to-Consumer (B2C) platform, and by leveraging shared technology, data, and resources, the Company can offer an extensive range of betting options for esports tournaments. The Company's in-house customized user interface and user experience, built on a technology stack that supports multiple odds and streaming sources, allows the Company to deliver deep esports betting coverage. The Company has been built by a team combining experience in the igaming industry and a passion for esports to offer players a unique, broad, engaging, and legal CS:GO betting, Dota 2 and League of Legends betting experience. The Company serves esports fans in more than 80 territories across the globe. In November 2020, Luckbox was named Rising Star at the EGR Operator Awards. The Company (via the Group) holds a full license under the Online Gambling Regulation Act (OGRA), issued by the Isle of Man Gaming Supervision Commission. As the Group is fully licensed in the Isle of Man for B2C and B2B esports & sports betting and casino, the Company has access to favorable payment processors. Luckbox is committed to supporting responsible gambling.
For further information, please contact:
Real Luck Group Ltd.
Thomas Rosander, Chief Executive Officer
Email: investment@luckbox.com
Phone: (647) 670 2882
Investor Relations
Nikhil Thadani, Sophic Capital
Email: nik@sophiccapital.com
Phone: (647) 670 2882
Follow Luckbox on Twitter / Facebook / LinkedIn
CAUTION WITH RESPECT TO FORWARD-LOOKING STATEMENTS
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/183035
FAQ
What is the update from Real Luck Group Ltd?
Why has the Company been unable to secure the required capital injection?
What will happen to the B2C platform, Luckbox.com?
Can Luckbox players withdraw their funds?
Which subsidiary will be wound up?
What is the expected outcome of the restructuring?
What other options is the Company exploring?
