April 13, 2021

$17.8 Million Raised by Luckbox During Private Placement Round

$17.8 Million Raised by Luckbox During Private Placement Round

eSports has become extremely popular over the last few years and billions of dollars of prize money have been awarded to elite-level players in a handful of popular gaming titles such as CS: GO, League of Legends, Dota 2, and Overwatch. Naturally, these tournaments are quite entertaining to watch and there are a few online sportsbook operators that have chosen to specialize in providing sports betting markets for the eSports industry, and this is where Luckbox comes into the picture.

In this segment, we’ll be taking a look at how the company managed to raise $17.8 million during a private placement round.

Private Placement Round

When it comes to selling shares of a particular organization, there are usually two ways of doing it. The first is to offer a public placement, which allows any party to purchase shares, and the second is a private placement, this is where shares are only sold to a pre-selected number of investors. The Real Luck Group Limited, which is the parent company of the popular eSports betting site Luckbox, has managed to sell $17.8 million shares via a non-public offering that was brokered by Gravitas Securities.

The official figures regarding the amount that was made are $16.98 million for partially brokered total gross proceeds and $824,700 for partially non-brokered total gross proceeds. According to Drew Green, Chairman of Luckbox, the strong leadership and of the team along with the growing potential and size of sports betting and eSports has resulted in the offering being oversubscribed. This is due to the investors being able to identify the attractive nature of the opportunity and the industry.

What’s Next for Luckbox?

According to Luckbox CEO, Quentin Martin, the funds generated will be used to potentially complete either an acquisition or merger opportunities. However, he had also stated that he’d like to invest more into the current Luckbox team along with scaling user acquisition. Overall, he’d like to see Luckbox in a position that allows the company to be able to take advantage of any opportunities that happen to pop up within the space.

When it comes to the M&A strategy of the organization, Luckbox might look into acquiring eSports communities that will help bootstrap the user acquisition within particular markets. The overall growth of Luckbox has skyrocketed over the last year due to the rapid rise in popularity of the eSports market.

Knowing Luckbox

Luckbox is an eSports betting site that was launched in 2019 under the Real Luck Group and has successfully been able to provide users with a safe and secure betting platform. Sports betting fans can use a range of cryptocurrencies such as XRP, Ethereum, Litecoin, and Bitcoin while operating under a gambling license that has been issued by the government of the Isle of Man.

The site was founded by Mike Stevens and Lars Lien, both of which are former colleagues of PokerStars. Some of the most popular titles are available to be wagered on and there are plenty of betting markets for each game.

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