Real Luck Group Ltd (TSX-V:LUCK, OTCQB:LUKEF) and its subsidiary companies doing business as Luckbox told investors that it recently signed a letter of intent (LOI) for a transaction that may ensure its immediate prospects and fund its ongoing growth and operations.
The company said the LOI aims to provide the financial resources it needs to meet its current commitments and facilitate its expansion through operational synergies. The transaction would require approval from the TSX Venture Exchange and shareholders, it added.
"We expect an initial capital injection into the Company by the end of September and subsequently expect to finalize a transaction,” Real Luck Group CEO Thomas Rosander said.
“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 company also provided an update on its second-quarter performance after achieving positive net contribution (net gaming revenue less cost of sales and marketing) for the first time in June 2023.
The company ended the quarter with player registrations of 450,000, an increase of 137,000 from the end of 2022, and generated global betting handle of $11.4 million, up from $3.2 million for the whole of 2022.
The average wager per real money player increased by 180% from 1Q 2023.
"We continue to make operational improvements and have made significant optimizations and reductions in our operational costs,” Rosander added.
“We also continue to make headway with our proprietary B2B product, which is being received well by large potential B2C customers."
Contact the author at stephen.gunnion@proactiveinvestors.com