Record Player Acquisitions in October Confirms
Growth Strategy
CALGARY,
AB and ISLE OF MAN, Oct. 27,
2022 /CNW/ - 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 $0.09
per share, to be paid in shares of the target company only. Mr.
Arviv then appeared to have changed his mind and proposed a "wind
down of the Company'', ignoring the Group's now finished platform
and growing player base. Neither proposal reflects the value
represented by the Company's significantly growing business and is
also well below the Company's net cash position.
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 254% and global Active Players grew 14
fold due to the accelerated player acquisition efforts and enhanced
customer retention strategy.
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.
Follow Luckbox on Twitter / Facebook / LinkedIn
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.