Real Luck Group draws up new investment plans after private placement fails
Elsewhere, the Calgary-based firm has noted 'extensive growth' in its Luckbox brand
Real Luck Group has been forced to abandon its proposed private placement after experiencing a ‘very difficult fundraising environment’.
The Calgary-based company, owner of the esports and sports betting platform Luckbox, announced last month a private placement of up to 60,000,000 units, at a price of $0.04 per unit, for gross proceeds of up to $2.4m.
Real Luck Group intended to use the net proceeds of the offering for corporate development, facilities expansion, technology advancement and general working capital.
However, in its latest operational and corporate update, the firm confirmed the private placement has failed.
Thomas Rosander, Real Luck Group CEO, said: “We have continued to demonstrate operational improvements into Q3 2023 and have made significant optimizations and reductions in our operational costs.
“While we are pleased with our business results, which have grown at a faster pace than we initially expected, our recently announced capital raise was unsuccessful in raising a satisfactory amount of capital in a timely manner.
“This has led us to pursue alternative options to strengthen our balance sheet and enable us to deliver our targets this year.”
Real Luck Group’s update added that there has been ‘significant’ interest from industry investors in both its B2C platform and wholly-owned B2B micro-betting product.
However, the firm also stated that there can be ‘no assurance’ that this process will result in any specific strategic plan or financial transaction, with no timetable set for its completion.
On a more positive note, Real Luck Group confirmed that over $23.9m has been wagered across the site from a registered player base of more than 450,000 since its last operating update in May.
Real Luck Group also achieved another high in July for Average Revenue Per User (ARPU) which, according to the company, shows the ‘extensive growth’ of the Luckbox brand given the protracted platform issues last year, while it also continues to develop a proprietary, live micro-betting product which is expected to launch later this year.