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Lottery.com (NASDAQ: SEGG) secures $2.5M financing tied to $2.875M convertible note

Filing Impact
(Low)
Filing Sentiment
(Neutral)
Form Type
424B5

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.

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 424(b)(5)

 

Filing under Rule 424(b)(5) of the Securities Act of 1933

 

Filed by: Lottery.com Inc.
Subject Company: Lottery.com Inc.
Commission File Number: 333-291505

 

NOTICE OF FILING UNDER RULE 424(b)(5)

 

Lottery.com Inc. (the “Company”) hereby files this communication pursuant to Rule 424(b)(5) under the Securities Act of 1933, as amended, in connection with the sale of securities under the Company’s Registration Statement on Form S-3/A (File No. 333-291505).

 

TRANSACTION DETAILS

 

Transaction Date: December 2, 2025
Purchaser: Evergreen Capital Management, LLC
Securities Sold: $2,875,000 of securities registered under the Form S-3/A.
Registration Statement: The securities sold were registered under the Registration Statement on Form S-3/A filed with the Securities and Exchange Commission on November 24, 2025.

 

ADDITIONAL INFORMATION

 

The securities sold to Evergreen Capital Management, LLC were issued pursuant to the terms and conditions outlined in the Registration Statement and the accompanying prospectus supplement. The proceeds from this transaction will be used for general corporate purposes, as disclosed in the “Use of Proceeds” section of the prospectus supplement.

 

FORWARD-LOOKING STATEMENTS

 

This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the Company’s management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. For a detailed discussion of these risks and uncertainties, please refer to the “Risk Factors” section of the Company’s filings with the Securities and Exchange Commission.

 

CONTACT INFORMATION

 

For further information, please contact:

 

Lottery.com Inc.

5049 Edwards Ranch, 4th Floor
Fort Worth, Texas 76109
Tel: (737) 787-3798

 

 

 

 

Legal Counsel:

 

Randall Lanham, Esq.
Law Offices of Randall Lanham
1816 Kimberly Lake Dr.
Swansea, Illinois 62226
Tel: (949) 933-1964

 

Dated: December 5, 2025

PROSPECTUS SUPPLEMENT

(To Prospectus dated November 25, 2025)

 

LOTTERY.COM INC.

 

$2,875,000 of Common Stock

Issued Pursuant to our Shelf Registration Statement on Form S-3 (File No. 333-291505)

 

This prospectus supplement (the “Prospectus Supplement”) relates to the issuance and sale by Lottery.com Inc. (d/b/a SEGG Media Corporation) (the “Company,” “Lottery.com,” “we,” “us,” or “our”) of $2,875,000 of our common stock, par value $0.001 per share (“Common Stock”), to Evergreen Capital Management, LLC (the “Investor”) pursuant to a securities purchase agreement dated December 2, 2025 (the “Purchase Agreement”).

 

This offering was made pursuant to our Registration Statement on Form S-3 (File No. 333-291505), as amended, which was declared effective by the Securities and Exchange Commission (“SEC”) on November 26, 2025 (the “Registration Statement”). This Prospectus Supplement should be read in conjunction with the base prospectus included in the Registration Statement (the “Prospectus”) and is qualified in its entirety by reference thereto. To the extent that any statement in this Prospectus Supplement is inconsistent with the statements in the Prospectus, the statements in this Prospectus Supplement supersede those in the Prospectus.

 

THE OFFERING

 

Issuer:

Lottery.com Inc., a Delaware corporation.

 

Securities Offered:

Shares of Common Stock issued for aggregate gross proceeds of $2,875,000.

 

Investor:

Evergreen Capital Management, LLC

 

Offering Price and Terms:

 

The Purchaser will purchase from the Company, upon the terms and conditions set forth in the Agreement, a Senior Secured Convertible Promissory Note of the Company (the “Note”), in the aggregate principal amount of Two Million Eight Hundred Seventy-Five Thousand U.S. Dollars ($2,875,000) (the “Principal Amount.”) The Note carries an original issue discount of Three Hundred Seventy-Five Thousand U.S. Dollars ($375,000) (the “OID”), to cover the Purchaser’s accounting fees, due diligence fees, monitoring, and/or other transactional costs incurred in connection with the purchase and sale of the Note, which is included in the principal balance of the Note. Thus, the purchase price of the Note shall be Two Million Five-Hundred Thousand U.S. Dollars ($2,500,000), computed by subtracting the OID from the Principal Amount.

 

 

 

 

Subject to the terms of the Agreement, for consideration of Two Million Five-Hundred Thousand U.S. Dollars ($2,500,000) in cash (the “Consideration”), the Purchaser agrees to subscribe for and purchase from the Company on December 2, 2025 (the “Closing Date”), and the Company agrees to issue and sell to the Purchaser, the Note. The Purchaser is irrevocably obligated to advance the Consideration, and the Company is irrevocably obligated to accept the Consideration as follows: (a) Five Hundred Thousand U.S. Dollars ($500,000) on or immediately following the Closing Date, and (b) Two Million U.S. Dollars ($2,000,000) immediately upon (i) the Common Shares issuable upon conversion of the Note becoming registered under an effective registration statement, and (ii) the Company obtaining the requisite shareholder approval authorizing the issuance of such Common Shares (“Shareholder Approval”) per Nasdaq Listing Rule 5635 requiring shareholder approval for the potential issuance of shares or securities convertible to common stock of Twenty Percent (20%) or more of the Company’s outstanding common stock. The Consideration shall be advanced by wire transfer of immediately available funds no later than two (2) Business Days after such effectiveness.

 

The Company and the Purchaser executed this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) of Regulation D promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act.

 

Use of Proceeds:

 

We estimate that the net proceeds from this offering will be approximately $2,500,000, after deducting estimated placement fees and offering expenses. We intend to use the net proceeds for working capital, product development, acquisitions, and other general corporate purposes.

 

Plan of Distribution:

 

This offering was made directly to Evergreen Capital Management, LLC pursuant to the Purchase Agreement.

 

Nasdaq Listing:

 

Our Common Stock is listed on The Nasdaq Stock Market LLC under the symbol “SEGG.”

 

DESCRIPTION OF THE SECURITIES

 

We issued shares of our Common Stock directly to the Investor under the Registration Statement. The rights of holders of our Common Stock are governed by our Certificate of Incorporation, Bylaws, and Delaware law.

 

INCORPORATION BY REFERENCE

 

This Prospectus Supplement incorporates by reference the documents identified in the “Incorporation by Reference” section of the Prospectus.

 

LEGAL MATTERS

 

The validity of the securities offered hereby is being passed upon for us by The Law Offices of Randall Lanham.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We file annual, quarterly, and current reports with the SEC at www.sec.gov.

 

LOTTERY.COM INC.

 

Prospectus Supplement dated December 5, 2025

 

 

 

FAQ

What type of securities is Lottery.com Inc. issuing in this 424(b)(5) offering?

Lottery.com Inc. is issuing common stock tied to a Senior Secured Convertible Promissory Note with an aggregate principal amount of $2,875,000 to Evergreen Capital Management, LLC.

How much cash will Lottery.com Inc. receive from the Evergreen Capital transaction?

Lottery.com Inc. expects to receive $2,500,000 in cash consideration, reflecting an original issue discount of $375,000 from the $2,875,000 principal amount of the note.

How and when will the $2,500,000 in proceeds be funded to Lottery.com Inc.?

The purchaser will fund $500,000 on or immediately after the December 2, 2025 closing date and $2,000,000 immediately after the conversion shares are registered and the company obtains required shareholder approval.

Why is shareholder approval required for the Lottery.com Inc. financing?

Shareholder approval is required under Nasdaq Listing Rule 5635, which calls for approval when there is a potential issuance of 20% or more of the company’s outstanding common stock in shares or securities convertible into common stock.

What will Lottery.com Inc. use the net proceeds from this offering for?

Lottery.com Inc. intends to use the estimated $2,500,000 of net proceeds for working capital, product development, acquisitions, and other general corporate purposes.

Under what registration statement was the Lottery.com Inc. offering made?

The offering was made under Lottery.com Inc.’s Registration Statement on Form S-3 (File No. 333-291505), which was declared effective by the SEC on November 26, 2025.

On which exchange is Lottery.com Inc. common stock listed and under what symbol?

Lottery.com Inc.’s common stock is listed on The Nasdaq Stock Market LLC under the symbol "SEGG".
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