Real Luck Group Confirms Receipt of Two Contradictory and Opportunistic Proposals From Activist Shareholder
Record Player Acquisitions in October Confirms Growth Strategy
CALGARY, AB and ISLE OF MAN, Oct. 27, 2022 /PRNewswire/ - Real Luck Group Ltd. (TSXV: LUCK) (OTCQB: LUKEF) (the "Company") and its subsidiary companies doing business as "Luckbox" (the "Group"), an award-winning provider of licensed, real money esports betting, sports betting and casino games, confirms that it has received two inconsistent proposals from Adam Arviv of KAOS Capital Ltd, which if pursued would not be in the best interests of the Company and its shareholders. Mr. Arviv appears to have recently acquired shares of the Company and has not indicated his level of ownership.
Mr. Arviv initially proposed a merger with a private gambling company valuing the Company at
The Company is undervalued. Real Luck Group has a strong cash position, no debt and a robust plan to reach profitability and scale in the next six-ten months. This makes the Company an industry outlier and a target for individuals such as Mr. Arviv, seeking to gain access to the Company's cash, with no regard for its stakeholders. The Board therefore has a duty to resist such opportunistic conduct. In that regard, the Board has retained McMillan LLP as legal counsel, and DuMoulin Black LLP continues to advise the Company.
Notwithstanding the Company's concerns regarding whether Mr. Arviv is acting in good faith, the Company remains prepared to meet with Mr. Arviv in his capacity as a shareholder of the Company. It should be noted that the Company had previously proposed an in person meeting with Mr. Arviv, which he declined. Another meeting that was suggested by the Company was also declined.
Real Luck Group remains committed to optimizing shareholder value. The Company continues to execute on its corporate strategy as outlined at the annual general meeting of shareholders held in August 2022, which can be found here and consists of the following key milestones:
Player Acquisition ++
Q4 2022 - Gradually accelerated growth through Q4 and into Q1 2023
B2B Offering & Partnerships
Q1 2023 - Products offered to global audience via B2B partnerships
Cash Flow Positive
Q2 2023 - Positive monthly EBITDA achieved
Next Gen Betting Product
Q3 2023 - Proprietary, immersive, live micro market betting product
Results of initial marketing efforts were announced in September Real Luck Group Ltd. Announces Triple Digit Growth in Key Operational Metrics — Real Luck Group Ltd and early October KPIs give confidence to the statement that the Company will reach positive EBITDA in the next 6 to 10 months without any additional funding.
Player Registrations for 26 days in October hit 24,411, a record for the Group. Deposits grew
About Luckbox
The Company 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, the Company 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 the Company 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. The Company serves esports fans in more than 80 territories across the globe. In November 2020, Luckbox was named Rising Star at the EGR Operator Awards. The Company (via the Group) holds a full license under the Online Gambling Regulation Act (OGRA), issued by the Isle of Man Gaming Supervision Commission. As the Group is fully licensed in the Isle of Man for B2C and B2B esports & sports betting and casino, the Company has access to favorable payment processors. Luckbox is committed to supporting responsible gambling.
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CAUTION WITH RESPECT TO FORWARD-LOOKING STATEMENTS
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities laws, including the Company achieving certain milestones in 2023 and reaching positive EBITDA in the next 6 to 10 months without any additional funding. In some cases, when used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company's estimates, beliefs and assumptions may prove to be incorrect. The risks and uncertainties that may affect forward-looking statements and information include, but are not limited to, market conditions, the regulatory environment for the online gaming industry, and other factors discussed under "Risks and Uncertainties" in the Company's management's discussion and analysis dated August 23, 2022 and "Risk Factors" in the Company's annual information form dated April 26, 2022, copies of which are available on SEDAR at www.sedar.com. The forward-looking statements and information in this news release speaks only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
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SOURCE Real Luck Group Ltd.
