Real Luck Group has made progress in its renewed attempts to secure investment after recently signing a Letter of Intent (LOI) for a potential merger or acquisition.
The Calgary-based company, owner of the esports and sports betting platform Luckbox, previously announced it had secured 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.
But the firm was forced to abandon the private placement last month after experiencing a ‘very difficult fundraising environment’.
Real Luck Group added that it was pursuing ‘alternative options’ in search of investment to fund its ongoing growth and operations, leading up to the company’s announcement this week.
Thomas Rosander, Real Luck Group CEO, commented: “We expect an initial capital injection into the company by the end of September, and subsequently expect to finalize a transaction. The signing of this LOI indicates industry interest in our company and its operations and assets.
“We are confident this would greatly benefit our shareholders and partners by securing capital in a very challenging fundraising environment.”
The transaction is contingent upon approval from the TSX Venture Exchange (TSXV) and shareholders, while Real Luck Group states there can be “no assurance that this process will result in any specific financial transaction”.
Rosander also took the opportunity to discuss the firm’s financial results for Q2 2023, where it ended with player registrations of 450,000, a significant increase from the 137,000 registered at the end of 2022.
“We continue to make operational improvements and have made significant optimizations and reductions in our operational costs,” said Rosander. “Q2 2023 saw us generate a record quarterly Global Gaming Handle of around $11.4m, owing to our emphasis on enhanced player retention and reactivation, despite lower marketing spend.
“We also continue to make headway with our proprietary B2B product, which is being received well by large potential B2C customers.”