Esports betting company Luckbox has announced a Letter of Intent (LOI) to acquire an unnamed ‘leading Asia-Pacific’ iGaming platform.
In addition to announcing the LOI with the platform, Luckbox also filed its Q3 2022 financial results.
According to a release, the acquisition involves Luckbox purchasing 100% of the platform and its technology, which it says has access to over 6,000 games from 50 game providers. The move is said to help enable Luckbox achieve growth through ‘combined operational synergies’.
For the purchase, the unnamed company will receive up to 7m common shares from Real Luck Group Ltd, the operator of Luckbox. As of right now, Luckbox’s shares on the TSX Venture Exchange are currently priced at CAD $0.10 — calculated around CAD$700,000 (£430,000). The deal is expected to close at the end of the year.
With regards to the company’s Q3 2022 financial results, Luckbox recorded an unaudited net loss of CAD $1.96m (~£1.2m), which is only slightly higher than CAD $1.92m (~£1.17m) from the same period last year.
Other notable financial figures include the company garnering a revenue of CAD $70,484 (~£43,272) for the first 9 months of 2022. This is a significant increase from last year’s CAD $15,240 (~£9,356) figure for 2021. The company ended Q3 2022 (September 30th, 2022) with approximately 19,000 players registered on its platform.
In Q3 2022, Luckbox also looked to bolster its expansion plans in South America through a partnership with Peruvian esports organisation Thunder Awaken.
Real Luck Group CEO, Thomas Rosander, commented: “Q3 was about ramping up our player acquisition initiatives. As reported, our record Q4 key performance indicators are a testament that our scalable plan is delivering above our expectations.
“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. 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.
The news follows on from fellow betting platform Rivalry announcing its first-ever profitable month after posting its Q3 2022 financial results.