Esports betting platform Luckbox has confirmed its oversubscribed financing closed at $5 million CAD (£2.88 million).
The news comes ahead of the company’s listing on the TSX Venture Exchange under the reserved ticker ‘LUCK,’ anticipated to be approved this fall.
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The financing was curated alongside capital pool company Elephant Hill, which entered a deal with Luckbox in May to convert the bookmaker’s issued and outstanding common shares acquired by the capital pool company. Subscription receipts sold during the financing stage will be exchanged for securities in Elephant Hill upon closing of the proposed go-public business combination.
Among the investors is Major League Soccer goalkeeper Luis Robles, a player for Inter Miami, the franchise co-owned by renowned footballer David Beckham.
Quentin Martin, CEO of Luckbox, told company shareholders in an update: “The management team and board of directors have been working hard to prepare for the public listing. We have enjoyed positive discussions with the TSXV, completed the Business Plan required for filing, draft financials are complete, with final audit sign-off expected by end of July. Ultimately, we anticipate receiving TSXV listing approval by early October 2020.
“Our management team believes that the esports betting market will continue to grow and that the Company is one of the bookmakers that will be leading the way globally.”
With the conclusion of its funding tranche, Luckbox has announced it will be recruiting for five key positions within the company, including a senior marketing role aimed to maintain this year’s momentum. The bookmaker’s plans include scaling its global marketing campaigns, the acquisition of additional gaming licenses to service new markets, and obtaining an odds provider to offer a B2B solution.
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Martin added: “In summary, Luckbox is pleased to have completed a $5.0M financing in connection with its go-public transaction by way of a business combination with Elephant Hill during a challenging period while successfully meeting its Q1 and Q2 roadmap targets which included adding additional languages, user acquisition partners and additional esports titles. We have made tremendous progress in 2020 and look forward to becoming only the second listed dedicated esports betting company on a public exchange.”
Luckbox recently reported a 500 percent uptick in betting volume since March, and recorded “a 10-fold increase” in the number of deposits compared with November 2019.
Esports Insider says: The future certainly looks bright for Luckbox following this latest finance call. The bookmaker fetched record-breaking betting volume during the pandemic, and its future business plans are indicative of continued prosperity.