Real Luck Group has announced the “immediate suspension” of betting and player registrations on its B2C platform, Luckbox.com.
The development arrives just weeks after the Calgary-based company signed a Letter of Intent (LOI) for a potential merger or acquisition.
At the time, Real Luck Group CEO Thomas Rosander said that he expected an initial capital injection into the company by the end of September.
However, the firm has determined that the potential transactions under consideration are “not viable” and are “not currently in the best interest of the company and its shareholders”, with a failure to secure the required capital injection due to “persistently challenging conditions in the capital markets”.
Subsequently, Real Luck Group has underlined its intent to restructure its operations, with an immediate suspension of betting and player registrations on its esports betting platform and a shift towards more cost effective B2B activities.
“B2C has generated all the company’s revenue to date, but achieving profitability will require significantly more capital than launching the B2B platform,” Real Luck Group detailed in a statement.
The firm has assured Luckbox players that they can continue to withdraw their funds, which are segregated from its operational funds
Furthermore, Real Luck has emphasised that it now continues to explore further strategic and operational options, such as 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 and the company’s shareholders, as applicable,” it added.
“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.”
Meanwhile, Real Luck Group confirmed that Jo-Anne Archibald (Company Secretary) and Benn Timbury (COO) both resigned as officers last month, with Timbury continuing to support the company as an adviser.