Real Luck Group Ltd (TSX-V:LUCK, OTCQB:LUKEF), and its subsidiaries doing business as Luckbox, told investors that it is restructuring its operations after determining that its earlier proposed merger or acquisition is not currently in the best interests of the company and its shareholders.
The company said in a statement that it expects the restructuring to be completed by year-end and will result in a new optimized and better-focused corporate structure with no debt and minimal cash burn.
As part of the restructuring, the company said it would be immediately suspending its betting and player registrations on its business-to-consumer (B2C) platform, Luckbox.com, and would be instead focusing on its more cost-effective business-to-business (B2B) activities.
Luckbox players will be able to withdraw their funds, it said.
Real Luck said its B2C operations have generated all of the company’s revenue to date but that achieving profitability would require significantly more capital than launching its B2B platform.
Real Luck also said that it has chosen to wind up Real Time Game Services, an indirect material subsidiary in the Isle of Man which services the group and holds agreements with the majority of its B2C service providers, contractors, and employees.
Insolvency practitioners have been engaged in the Isle of Man, and the insolvency is isolated to Real Time Game Services with no other subsidiaries affected, the company noted.
The company said it continues to explore other strategic and operational options, including a potential merger, acquisition, or capital raise for growing its B2B or restarting its B2C operations.
Real Luck 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.
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