Lottery.com Secures $50 Million Credit Facility and Successfully Restores Nasdaq Compliance
August 02 2023 - 1:40PM
Lottery.com, Inc. (NASDAQ: LTRY, LTRYW) ("Lottery.com" or the
"Company") is pleased to announce two significant milestones in its
journey towards revenue growth and stability. The Company has
successfully regained compliance with another Nasdaq listing
requirement and secured a credit facility with United Capital
Investments London, Ltd. ("UCIL").
Lottery.com has reached a definitive agreement with UCIL for a
credit facility that sets the foundations for a more stable
financial future for the business and a platform for growth. The
agreement provides the Company with an initial loan of $1 million,
along with an additional credit facility of up to $49 million,
enabling Lottery.com to bolster its financial position and pursue
strategic opportunities.
To secure the initial loan, the Company has issued a number of
warrants to UCIL, allowing the latter to purchase shares of
Lottery.com's common stock, capped at 15% of the Company's issued
and outstanding shares. This mutually beneficial arrangement
reflects the Company's commitment to sustainable growth and its
commitment to creating value for its shareholders. Directors Barney
Battles and Matthew McGahan have direct or indirect interest in
UCIL. Their interest in UCIL was declared to the Company board
prior to proceeding with the arrangement and they did not vote on
the acceptance of the agreement.
Alongside the funding Lottery.com has improved its corporate
governance and board composition with the recent appointment of
Tamer Hassan and Paul Jordan to the Board of Directors as
independent non-executive directors and members of the Audit
Committee. These appointments address the deficiency raised by The
Nasdaq Stock Market LLC ("Nasdaq").
On July 26, 2023, the Company received written confirmation from
Nasdaq that it has regained compliance with Listing Rule
5605(c)(2). This rule mandates that the audit committee of the
Company's board of directors consists of at least three members,
each of whom is an independent director and meets the heightened
independence standards set by Nasdaq's listing rules.
Commenting on these developments, the independent
non-executive directors of the Company issued the following
statement:"Reaching an agreement with UCIL and regaining
compliance with another Nasdaq listing rule are strong indications
that the Company is making progress on its recovery plan. The Board
felt strongly that it was time to find an alternative lender to
Woodford Eurasia Assets, Ltd., as the withholding of their funding
was hindering many of our operational and revenue plans. With the
financial backing from UCIL, we expect to quickly move forward with
our operational goals and to capitalize on the promising
opportunities that lie ahead."
For more information please
contact: ir@lottery.com , or
visit: http://www.lottery.com
About Lottery.com, Inc.
Lottery.com, Inc. is a leading technology
company that is transforming how, where and when lotteries are
played. Its engaging mobile and online platforms enable players and
commercial partners located throughout the United States and other
countries to remotely purchase safe and legally sanctioned lottery
games. Lottery participants look to the Company’s website,
Lottery.com, for compelling, real-time results on over 800 lottery
games from over 40 countries. In all that it does, Lottery.com’s
mission remains the same: an uncompromising passion to innovate,
grow a new demographic of enthusiasts, deliver responsible and
trusted solutions, and promote community and philanthropic
initiatives.
Important Notice Regarding
Forward-Looking Statements
This press release contains statements that
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). All statements, other
than statements of present or historical fact included in this
press release, regarding the company’s future financial
performance, as well as the company’s strategy, future operations,
revenue guidance, projected costs, prospects, plans and objectives
of management are forward-looking statements. When used in this
press release, the words “could,” “should,” “will,” “may,”
“believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,”
the negative of such terms and other similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on management’s current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. Except as otherwise required by applicable law,
Lottery.com disclaims any duty to update any forward-looking
statements, all of which are expressly qualified by the statements
in this section, to reflect events or circumstances after the date
of this press release. Lottery.com cautions you that these
forward-looking statements are subject to numerous risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the control of Lottery.com. In addition,
Lottery.com cautions you that the forward-looking statements
contained in this press release are subject to the following
factors: (i) the outcome of any legal proceedings that may be
instituted against Lottery.com; (ii) the Company’s ability to
maintain effective internal controls over financial reporting,
including the remediation of identified material weaknesses in
internal control over financial reporting relating to segregation
of duties with respect to, and access controls to, its financial
record keeping system, and its accounting staffing levels; (iii)
the effects of competition on Lottery.com’s future business; (iv)
risks related to its dependence on its intellectual property and
the risk that technology could have undetected defects or
errors; (v) changes in applicable laws or regulations; (vi) risks
related to the COVID-19 pandemic or other pandemic and their effect
directly on Lottery.com and the economy generally; (vii) risks
relating to privacy and data protection laws, privacy or data
breaches, or the loss of data; (viii) the possibility that the
Company may be adversely affected by other economic, business,
and/or competitive factors; (ix) the ability of Lottery.com to
achieve its strategic and growth objectives as stated or at all;
and (x) those factors discussed in the proxy statement/prospectus
filed by Lottery.com, Inc. with the U.S. Securities and Exchange
Commission (“SEC”) under the heading “Risk Factors” and the other
documents filed, or to be filed, by the Company with the SEC.
Should one or more of the risks or uncertainties described in this
press release materialize or should underlying assumptions prove
incorrect, actual results and plans could differ materially from
those expressed in any forward-looking statements. Additional
information concerning these and other factors that may impact the
operations and projections discussed herein can be found in the
reports that Lottery.com has filed and will file from time to time
with the SEC. These SEC filings are available publicly on the SEC’s
website at www.sec.gov.
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