Luckbox lands C$17.8m in oversubscribed special warrants placement
Operator exceeds initial expectations of C$5m raise as chair cites esports growth potential as key reason for interest
Esports betting operator Luckbox has secured C$17.8m (£10.1m) through the private placement of special warrants in the company.
Last month, the Toronto-listed group announced its intent to raise C$5m through the process.
The placement was then upsized due to demand and oversubscribed, resulting in Luckbox securing more than 200% of its intended capital raise.
In total, 16,487,384 special warrants were issued at a price of C$1.20 per unit.
Gravitas Securities served as the lead agent and sole bookrunner throughout the process. It was paid a cash commission of $1.36m and issued with 1,132,005 non-transferrable special warrants for its services.
Luckbox said the proceeds raised from the offering would be used for working capital and general corporate purposes.
Drew Green, Luckbox chair, said: “Luckbox’s strong leadership team, paired with the current size and growth potential of esports and sports betting, led to the offering being heavily oversubscribed, as investors begin to recognise this attractive sector and opportunity.
“We are grateful to our investors for their support and this financing puts Luckbox in a strong position to execute on our goals as we strive to further establish the business as a global leader in the esports betting space,” he added.