Luckbox seeks Asia expansion with acquisition of iGaming platform

Canada’s Real Luck Group, which does business under the Luckbox brand, says it has signed a letter of intent to buy an Asia-facing iGaming platform in an all-stock transaction of up to seven million of its own shares. 

Under the accord, Luckbox will buy the vendors’ proprietary platform and technology with access to more than 6,000 games from 50 game providers and 100 localised payment methods. Luckbox didn’t name the gaming platform, but said the purchase will allow more efficient growth through combined operational synergies, as well as providing immediate access to the Asia Pacific market.

It adds that the acquisition will bring additional highly credible expertise via key members of the team, who have previously built successful iGaming businesses.

Calgary-based Luckbox said under the terms of the deal, the shares will be subject to lock up conditions. Up to six million will only be paid if certain milestones are met by January, 2025.

“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,” CEO Thomas Rosander said in a statement.

APAC opportunities

“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. “This transaction ultimately builds our business’ upside by providing immediate access to a large player base. This all-stock transaction further validates our strategic growth plan, with both companies sharing a common Luckbox vision.”

The deal is expected to close by the end of the year.

On Tuesday, Luckbox shares closed down 4.7 percent at C$0.10 in Toronto trading. The deal is subject to TSX Venture Exchange approval. 

The group announced the acquisition along with its 3Q22 results. The group reached about 19,000 player registrations by the end of the quarter. 

Total revenue was $38,016, up from $7,238 in the same period a year earlier. The company reported a net loss of $1.96 million, slightly wider than $1.91 million a year earlier. 

Luckbox recently received two proposals from an activist investor, who wanted to force a merger with another company, or wind up the business.

The company rejected the suggestions as saying they significantly undervalue the company.