Lottery.com raises $2.5M via secured convertible note and stock sale
Lottery.com Inc. is raising capital through a registered offering tied to a senior secured convertible promissory note.
Rhea-AI Filing Summary
Lottery.com Inc. is raising capital through a registered offering tied to a senior secured convertible promissory note. The company agreed to issue common stock with an aggregate principal amount of $2,875,000 to Evergreen Capital Management, LLC under an effective shelf registration on Form S-3. The note includes a $375,000 original issue discount for fees and costs, so the company expects net cash consideration of $2,500,000, funded in two stages.
The investor will provide $500,000 on or immediately after the closing date of December 2, 2025, and a further $2,000,000 once the common shares issuable upon conversion are registered and shareholder approval is obtained as required by Nasdaq Listing Rule 5635 for potential issuances of at least 20% of outstanding common stock. Lottery.com estimates net proceeds of about $2,500,000 and plans to use the funds for working capital, product development, acquisitions, and other general corporate purposes.
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Insights
Lottery.com secures up to $2.5M cash via a secured convertible note tied to a registered stock issuance.
Lottery.com Inc. is using its effective shelf registration to support a financing with Evergreen Capital Management, LLC. The structure combines a senior secured convertible promissory note with an aggregate principal of $2,875,000 and an original issue discount of $375,000, resulting in $2,500,000 of cash consideration. This indicates the company is prioritizing near‑term liquidity while compensating the investor through the higher principal amount.
Funding arrives in two tranches: $500,000 on or around the December 2, 2025 closing, and $2,000,000 after two conditions are met—the registration of the conversion shares and shareholder approval under Nasdaq Listing Rule 5635. That rule applies when potential share issuance reaches at least 20% of outstanding common stock, signaling that the conversion feature could be sizeable relative to the current equity base.
The company expects net proceeds of approximately $2,500,000 for working capital, product development, acquisitions, and other corporate purposes. Actual impact on existing shareholders will depend on the note’s conversion dynamics and the shareholder vote referenced in the approval requirement.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What type of securities is Lottery.com Inc. issuing in this 424(b)(5) offering?
How much cash will Lottery.com Inc. receive from the Evergreen Capital transaction?
How and when will the $2,500,000 in proceeds be funded to Lottery.com Inc.?
What will Lottery.com Inc. use the net proceeds from this offering for?
Under what registration statement was the Lottery.com Inc. offering made?
On which exchange is Lottery.com Inc. common stock listed and under what symbol?
AI-generated analysis. How Rhea-AI works. Not financial advice.