All Stock Transaction Will Provide
Immediate Access To APAC Market, Advances
B2B Rollout
CALGARY,
AB and ISLE OF MAN , Nov. 29,
2022 /CNW/ - Real Luck Group Ltd. (TSX.V: LUCK)
(OTCQB: LUKEF) (the "Company") and its subsidiary companies doing
business as "Luckbox" (the "Group"), an award-winning provider of
licensed, real money esports betting, sports betting and casino
games, has filed financial results for the three and nine months
ended September 30, 2022 ("Q3
2022") on SEDAR.
The Company also announces a LOI to acquire a
leading Asia-Pacific (APAC) focused iGaming platform (the
"Target"), with a wholly owned proprietary tech stack, subject to
TSX Venture Exchange ("TSXV") approval (the "Transaction").
Management Commentary
Real Luck Group CEO Thomas
Rosander said: "Q3 was about ramping up our player
acquisition initiatives. As reported, our record Q4 key performance
indicators are a testament that our scalable plan is delivering
above our expectations. We are already seeing significant
improvements for growth in Q4 2022, as we now focus on driving
additional player value, deposits and wagers on our platform."
"Adding B2B to our proprietary platform has always been a
significant part of the Luckbox strategy, and this important
acquisition means we will complete this objective almost a year in
advance of our projections. It also extends our opportunities into
APAC, a significant region that we currently do not have a presence
in and perhaps the largest esports market globally. This
transaction ultimately builds our business' upside by providing
immediate access to a large player base. This all-stock transaction
further validates our strategic growth plan, with both companies
sharing a common Luckbox vision. The newly announced acquisition,
which is expected to close by the end of the year, will further
accelerate our growth and footprint in global markets as we head
into 2023 and beyond", added CEO Thomas
Rosander.
2022 Q3 Operational Highlights
- Exited Q3 2022 with player registrations of approximately
19,000. The Company has since registered a record number of players
on the platform during the early part of Q4 indicated in
"Subsequent Events" below.
- Ended Q3 by finalizing global platform support and
localization, ensuring Luckbox can effectively serve a significant
portion of the global iGaming population enhanced with over 100
payment methods setting the business up in Q4 and into 2023 for
global growth.
- Ended Q3 with partnerships and agreements with more than 300
international player acquisition channels versus 50 as at the end
of Q2, 2022. These partnerships and agreements will deliver an
increase in player traffic to Luckbox's next-generation iGaming
platform.
Acquisition Advances Luckbox's Global Growth
Objectives
The Company has entered into an LOI to effect a share exchange,
on a debt free basis and subject to TSXV approval, to acquire 100%
of the shares of the Target, a leading Asian-focused iGaming
platform.
The Transaction will see Luckbox purchase the vendors'
proprietary platform and technology, with access to over 6,000
games from 50 game providers and 100 localized payment methods.
This platform will now become an integral part of the growing
Luckbox group and enhances the core Luckbox product offering.
The acquisition should enable more efficient growth through
combined operational synergies. The Transaction also brings
additional highly credible expertise, via key members of the team
that have previously built successful iGaming businesses.
Purchase Consideration:
Pursuant to the LOI, the parties will enter into a share
exchange agreement which will provide that Luckbox will acquire
100% of the issued and outstanding shares of the Target on a
debt-free basis in exchange for up to 7 million common shares of
Real Luck Group Ltd. Company shares issued as part of the
Transaction will be subject to lockup or escrow conditions, and up
to 6 million of which will only be paid to the vendors if certain
milestones are attained by January 12,
2025 . The Transaction is also subject to customary closing
conditions, including receipt of TSXV approval, and does not
require shareholder approval. The vendors of the Target are each at
arm's length to the Company and the Transaction will not result in
any person who was previously not an insider of the Company
becoming a 10% or greater shareholder of the Company. The
Transaction is expected to close in December
2022.
Subsequent Events
- November 7, 2022: Player
Registrations for the first 26 days of October were 24,411 which
led to a monthly record of 25,000+ Player Registrations in October.
Luckbox delivered this base increase from both our strong LATAM
presence and other global markets. Active players grew 16-fold from
August, and stakes placed across all gaming verticals grew 252%
versus September. Luckbox was more efficient in driving traffic
than predicted, and has already begun to scale efforts in key
global markets including Latin
America, Europe, and
APAC.
- November 18, 2022: Announced the
fourth consecutive month of record player acquisition. Luckbox also
announced early encouraging trends in Handle growth, of over 50%,
compared to its previous record breaking month of October, and
prior to Luckbox's largest sportsbook launch during the FIFA World
Cup.
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 favourable
payment processors. Luckbox is committed to supporting responsible
gambling.
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 contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
Canadian securities laws, including statements regarding the timing
of the closing of the Transaction, the benefits thereof to the
Company (including more efficient growth through combined
operational synergies and additional highly credible
expertise joining the Company) and the terms and conditions
thereof; and the Company seeing significant improvements for growth
in Q4 2022 and beyond. 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, including
the failure to close the Transaction and other risks, uncertainties
and factors set out in the Company's continuous disclosure filings
under the Company's profile on SEDAR at www.sedar.com. 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.
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SOURCE Real Luck Group Ltd.
