Real Luck Group Ltd (CVE:LUCK), doing business as Luckbox, reported that it has completed its previously-announced upsized and oversubscribed private placement of special company warrants, receiving total gross proceeds of about C$17.8 million.
The company said the net proceeds of the offering are expected to be used for working capital and general corporate purposes.
“Luckbox's strong leadership team paired with the current size and growth potential of esports and sports betting led to the offering being heavily oversubscribed, as investors begin to recognize this attractive sector and opportunity,” Real Luck Group chairman Drew Green said in statement.
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“We are grateful to our investors for their support and this financing puts Luckbox in a strong position to execute on our goals as we strive to further establish the business as a global leader in the esports betting space,” Green added.
The special warrants offering, which was conducted by Gravitas Securities Inc as lead agent and sole bookrunner, consisted of a brokered and a non-brokered portion for total gross proceeds of $16,980,080.40 and $824,700, respectively.
A total of 14,837,317 special warrants were issued by the company at a price of $1.20 per warrant, which included 1,650,067 warrants being issued as a result of the exercise of the agent's over-allotment option.
Each special warrant entitles the holder to receive one unit of the company, without payment of additional consideration, with each unit being comprised of one company common share and one-half of one common share purchase warrant, entitling the holder to purchase an additional common share of the company at a price of $1.50 per share for a period of 36 months from the initial closing date of the offering.
The offering is subject to a four-month hold period from the date of issue.
Real Luck Group, along with its subsidiary companies doing business as 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.
Contact Sean at sean@proactiveinvestors.com