Real Luck seeks restructure as proposed merger falls through

The operator last month signed a letter of intent (LOI) for a possible merger or acquisition. At the time, Real Luck said this had the potential to ensure its immediate prospects and to fund ongoing growth and operations.

However, following examination and assessment of the proposal, Real Luck says the terms are no longer “viable”. It adds the potential transactions are not currently in the best interests of the company and its shareholders.

Real Luck also revealed it has not been able to secure the required capital injection due to challenging conditions in the capital markets. This is despite reporting “significant growth” since the start of 2023.

Luckbox set to halt registrations

As such, Real Luck is now looking to restructure its operations. This, it says, will mean an immediate suspension of betting and player registrations on its Luckbox.com B2C platform. 

Real Luck will also focus on what it described as the more “cost effective” B2B activities of the business. This is despite all revenue to date coming from B2C

“B2C has generated all the company’s revenue to date, but achieving profitability will require significantly more capital than launching the B2B platform,” Real Luck said.

Wider implications for Real Luck

As to how this will impact players, customers of Luckbox will continue to be able to withdraw their funds. Real Luck says these funds are segregated from the operator’s operational funds and will be supported.

Meanwhile, Real Luck has resolved to wind up the Real Time Game Services business. This indirect material subsidiary services the group and holds agreements with a range of B2C service providers, contractors and employees. Insolvency practitioners have been engaged in the Isle of Man to proceed with the winding up.

Real Luck stressed the insolvency is isolated to RTGS and no other subsidiaries are affected. This, it says, incudes the licence-holder Real Time Games Holding Ltd.

Restructuring is expected to complete before the end of the year and, according to Real Luck, will result in a new “optimised and better focused” corporate structure with no debt and minimal cash burn.

Mergers and acquisition not off the table

Looking to the future, Real Luck says it will continue to explore other strategic and operational options. These include a potential merger, acquisition, or a capital raise for growing its B2B or restarting B2C operations. 

Any potential transaction may be subject to approval from the Toronto Stock Exchange Venture Exchange and shareholders. Real Luck adds there is no guarantee this process will result in any deals being struck. 

In relation to the restructure, Real Luck has announced the departure of two members of staff. Chief operating officer Benn Timbury and company secretary Jo-Anne Archibald have both resigned as officers of the business.

Timbury continues to support the business as an adviser while its directors remain unchanged.