Real Luck Group rejects activist investor proposals

प्रकाशित किया गया नवम्बर 01, 2022 14:59 Category: ऑनलाइन , खेल सट्टेबाज़ी , विलय और अधिग्रहण कार्रवाई , द्वारा प्रकाशित किया गया Sharon Singleton

Real Luck Group said it has received two proposals from an activist investor that significantly undervalue the company and would be bad for shareholders.

Real Luck, which provides esports betting, sports betting and casino games, said the proposals had come from Adam Arviv from KAOS Capital. The investor recently acquired stock in Canada-based company, but hasn’t disclosed his position.

The first proposal involves a merger with a private gambling company that values Real Luck at $0.09 a share. The second is a winding down of the company.

“Neither proposal reflects the value represented by the company’s significantly growing business and is also well below the company’s net cash position,” it said in a statement. 

Real Luck said it has a strong cash position, no debt and a robust plan to reach profitability and scale in the next six-to-ten months.

The board said it is resisting this “opportunistic conduct” and has taken on McMillan LLP as legal counsel. DuMoulin Black continues to advise the company. 

Real Luck, which does business as LuckBox, said it achieved positive monthly EBITDA in 2Q22, while player acquisition is gradually accelerating through 4Q22. 

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