Esports betting operator Luckbox has announced that they completed an upsized and oversubscribed private placement of special warrants of the company. As a result, they have raised aggregated proceeds of $17.8 Million CAD.
The private placement
They had initially planned to raise $5 million but upsized the round to $15 million only 24 hours later. They had underestimated the amount of investment and were heavily oversubscribed. They plan to use the money raised by the private placement funding for working capital and general corporate purposes such as investing in its existing team and scaling user acquisition.
The offering that they received was made up of brokered and non-brokered portions worth $17 million and $824,700, respectively. The company Gravitas was paid fiscal advisory fee for the provision of its advisory services. They received a fee equal to $65,976 and was issued with a further 54,980 advisor special warrants.
Luckbox is a bitcoin-based esports betting website. It was launched in 2019 and aims to provide a safe and secure experience by implementing a fully regulated esports wagering system. Luckbox lets esports fans bet with Bitcoin, Ethereum, XRP and Litecoin and they hold one of the world’s most respected gambling licences. They have been awarded a top tier gambling licence by the Isle of Man government. The licence allows Luckbox to accept fiat, crypto and in-game items as currency when transacting with players.
Luckbox was founded by former PokerStars colleagues Lars Lien and Mike Stevens. It was built by a team combining vast experience in the igaming industry and a passion for esports to offer players a platform to bet on their favourite games, including CSGO, Dota 2 and League of Legends.
Comment from the chairman
Luckbox chairman, Drew Green, wrote about the private placement in their press release:
“Luckbox’s strong leadership team paired with the current size and growth potential of esports, and sports betting led to the offering being heavily oversubscribed, as investors begin to recognize this attractive sector and opportunity. We are grateful to our investors for their support and this financing puts Luckbox in a strong position to execute on our goals as we strive to further establish the business as a global leader in the esports betting space.”
The future for Luckbox
Luckbox is taking advantage of the growth that many esports betting sites have received during the pandemic and is stacking their leadership team with some major heavy hitters. They Only a couple of month ago they added former Finance Director of Global-e and CFO of ASX-listed ParaZero LTD, Ran Kaspi, as their new Chief Financial Officer. This comes after their public market debut on Wednesday, December 16, on the TSX Venture Exchange in Toronto. In just one month their share price had increased by 75%.
Luckbox reported a 500% increase in turnover during the spring lockdown, accelerating its path to go public. They have been making strides towards dominance in the esports betting sector. Many other traditional sportsbooks offer esports betting, but it takes operators that truly focus and dive deep into the esports scene to succeed.