Real Luck Group to acquire Asia-facing B2B firm as Q3 revenue jumps
Luckbox parent company to secure company in exchange for up to seven million common shares of Real Luck Group
Real Luck Group has inked a letter of intent (LOI) to acquire an Asia-Pacific (APAC) facing igaming firm as the company looks to capitalise on its growing customer base.
The transaction will see Real Luck Group purchase the unnamed B2B supplier’s proprietary technology and platform, which has over 6,000 games from 50 providers and 100 localised payment methods.
As per the terms of the LOI, the parties will enter into a share exchange agreement in which Luckbox will acquire 100% of the issued and outstanding shares of the target on a debt-free basis, and in exchange, the target will receive up to seven million shares of the Real Luck Group.
These shares will be subject to lockup or escrow conditions, and up to six million will only be paid if certain milestones are achieved by 12 January 2025.
Real Luck Group’s share price was down 4.8% at yesterday’s close to just C$0.10.
The firm noted that this would form an integral part of the Luckbox platform and its future offerings.
The all-stock acquisition is expected to conclude by the end of the year and is subject to TSX Venture Exchange approval.
Thomas Rosander, CEO of Real Luck Group, said: “Adding B2B to our proprietary platform has always been a significant part of the Luckbox strategy, and this important acquisition means we will complete this objective almost a year in advance of our projections.
“It also extends our opportunities into APAC, a significant region that we currently do not have a presence in and perhaps the largest esports market globally.”
The news of the acquisition comes as Real Luck Group posted a significant uptick in Q3 revenue and player registrations.
The esports-centric firm recorded revenue of C$38,016, a small total but a major improvement on Q3 2021’s return of just C$7,238.
The group recorded a slight year-on-year (YoY) increase in net loss before tax, rising from C$1.9m to C$2m.
Elsewhere, Real Luck Group noted around 19,000 player registrations and over 300 partnerships with international player acquisition channels during the reporting period.
This has continued into Q4 as player registrations in October went above 25,000, with an increase in Latin America and the firm’s other global markets.
In November, the firm announced its fourth consecutive month of record player acquisition. Luckbox also announced early trends in handle growth of over 50% compared to October.
Rosander stated that these partnerships would help drive traffic to Luckbox’s platform.
He said: “Q3 was about ramping up our player acquisition initiatives. As reported, our record Q4 key performance indicators are a testament that our scalable plan is delivering above our expectations.
“We are already seeing significant improvements for growth in Q4 2022, as we now focus on driving additional player value, deposits and wagers on our platform,” he concluded.