Luckbox bows out of B2C due to lack of investment

Luckbox bows out of B2C due to lack of investment

Luckbox bows out of B2C due to lack of investment
Real Luck Group-owned betting platform Luckbox has announced that it has suspended player and betting registrations following difficulties securing sufficient funding to proceed with its business-to-customer unit. This also comes shortly after, during the company’s second-earning call, Luckbox CEO Thomas Rosander said that the brand was on the right path and did not indicate there were reasons for concern. The company revealed that several attempts to secure the required capital were unsuccessful, citing capital market conditions, and further adding that attempts to carry out a proposed merger or acquisition did not garner sufficient interest among the parties involved. Luckbox revealed in September that it had inked a LOI and was looking forward with a possible merger or acquisition which would have provided sufficient capital to carry on. The company did not provide information bout who the interested parties might be at the time. The present situation does not mean an end to Real Luk Group’s operations overall, as the company is shifting towards a B2B operational capacity, which is certainly an area where Luckbox excels, owing to developing a robust platform for its own B2C operations. Luckbox has made sure to acquire a top crop of individuals who mix business and technological acumen to push the boundaries of the esports betting industry and produce innovative products in what has traditionally been overlooked vertical. To move forward, the company would need to restructure as it readies to provide cutting-edge solutions to the highly competitive esports sector. A possible restructuring completion is set for the end of the year, and the company will focus on moving forward with no debt and minimal cash burn. The decision to move towards B2B does not come lightly, but it’s also a reflection on the company’s ability to chart a path towards sustainability for itself. Nor has Luckbox completely given up on its ambition to operate in the B2C sector, as the official press statement confirmed that upon acquiring sufficient funding, Real Luck Group might consider restarting its business-to-customer operations or failing that – continue to expand more rapidly in the business-to-business vertical where its new stomping ground is going to be. The statement also suggested that there was a brief opportunity to move forward with the B2C unit through a transaction, but that would have not been in the best interest of the group’s shareholders. Image credit: Unsplash.com

09 OCT 2023

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