The operator recently signed a letter of intent (LOI) for a potential merger or acquisition. However, after further examination, the terms of the proposal are no longer viable. Real Luck has also been unable to secure the necessary capital injection due to challenging market conditions. As a result, Real Luck is now looking to restructure its operations, suspending betting and player registrations on its Luckbox.com B2C platform and focusing on the more cost-effective B2B activities of the business. This restructuring is expected to be completed before the end of the year, resulting in a new corporate structure with no debt and minimal cash burn. Real Luck will continue to explore strategic options, including mergers, acquisitions, and capital raises for B2B or B2C operations in the future. The departure of Chief Operating Officer Benn Timbury and Company Secretary Jo-Anne Archibald has also been announced.
Real Luck has stated that the potential transactions are not currently in the best interests of the company and its shareholders. Despite reporting significant growth since the start of 2023, Real Luck has not been able to secure the required capital injection due to challenging conditions in the capital markets.
Real Luck is now looking to restructure its operations, suspending betting and player registrations on its Luckbox.com B2C platform. The company will focus on the more cost-effective B2B activities of the business.
The suspension of betting and player registrations on the Luckbox.com B2C platform is part of Real Luck’s restructuring efforts. The company will shift its focus to the more cost-effective B2B activities of the business.
All revenue to date has been generated from B2C, but achieving profitability will require significantly more capital than launching the B2B platform, according to Real Luck.
Real Luck has announced that customers of Luckbox will still be able to withdraw their funds, as these funds are segregated from the operator’s operational funds and will be supported.
Real Luck has decided to wind up the Real Time Game Services business, which is an indirect material subsidiary that services the group and holds agreements with various B2C service providers, contractors, and employees. The winding up process will be handled by insolvency practitioners in the Isle of Man. Real Luck has clarified that the insolvency is isolated to RTGS and does not affect any other subsidiaries, including the license-holder Real Time Games Holding Ltd.
Real Luck will continue to explore strategic and operational options, such as potential mergers, acquisitions, or a capital raise to support its B2B operations or restart B2C operations. However, any potential transaction will be subject to approval from the Toronto Stock Exchange Venture Exchange and shareholders.
