Real Luck Group Ltd. (CVE:LUCK) said it has tripled the size of the fund-raise it announced on Wednesday to 12,500,000 special warrants at a price of $1.20 each for aggregate gross proceeds of approximately $15 million due to strong investor demand.
The offering was previously for Gravitas Securities Inc., as sole agent and bookrunner, to sell 4,166,666 special warrants on a commercially reasonable efforts basis, at the same price of $1.20 each for gross proceeds of approximately $5 million.
The net proceeds of the offering are expected to be used for working capital and general corporate purposes.
READ: Real Luck's online gambling platform Luckbox sees $1M CS:GO esports tournament as potential customer acquisition boon
The company also said it has tripled the over-allotment option granted to Gravitas, to provide for the sale of up to an additional 1,875,000 special warrants, up from 625,000 previously. The over-allotment option is exercisable in whole or in part at any time up to 30 days following the closing of the offering.
The group said the initial closing date is expected to be on or about the week of March 15, 2021.
Each special warrant will entitle the holder to receive one unit of the company, without payment of additional consideration, with each unit comprised of one common share of the company and one-half of one non-transferable common share purchase warrant. Each share purchase warrant will entitle the holder to purchase an additional common share of the company at a price of $1.50 each for a period of 36 months from the closing date of the offering.
Luckbox 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. The company has a Business-to-Consumer (B2C) platform, and by leveraging shared technology, data, and resources, it can offer an extensive range of betting options for esports tournaments. The company's in-house customized user interface and user experience, built on a technology stack that supports multiple odds and streaming sources, allows it to deliver deep esports betting coverage.
The company has been built by a team combining experience in the igaming industry and a passion for esports to offer players a unique, broad, engaging, and legal CS:GO betting, Dota 2 and League of Legends betting experience. It serves esports fans in more than 80 territories across the globe. In November 2020, Luckbox was named Rising Star at the EGR Operator Awards.
Based on the Isle of Man, Real Luck Group holds a full licence under the Online Gambling Regulation Act (OGRA), issued by the Isle of Man Gaming Supervision Commission.
-- Adds details of offering upsize --
Contact the author at jon.hopkins@proactiveinvestors.com