Real Luck Group turns down opportunistic proposals

Real Luck Group Ltd, the company behind the popular Luckbox brand, a pioneer in the esports betting space, has confirmed in an official press statement that it has received two "inconsistent" and "opportunistic" proposals by one of the company’s investors. The investor, Adam Arviv of KAOS Capital Ltd, is said to have recently acquired shares in the company but his exact ownership is not immediately clear. However, Real Luck Group Ltd. is confident that the proposals, in their current forms, are not in the best interest of the company nor its shareholders.

Real Luck Group went on to further explain the nature of the proposals and why the company had objections to them both. When the first proposal was submitted to Real Luck Group, Arviv offered Real Luck Group $0.09 per company share. The idea was to merge Real Luck Group with a private gambling company and the transactions to be carried out in shares.

Later, Arviv said that he would prefer to "wind down" the company. This comes despite Real Luck Group insisting that it has been consistently growing its player base and improving its operational results. The company further insisted that its position in terms of net cash was also underestimated by Arviv’s proposals.

Overall, the press statement clearly argued that its value has been underplayed significantly and that Real Luck Group had a strong cash position, no debt, and a robust plan how to reach profitability over the next six to ten months. Despite the difficult start, the company clearly explained in the past that it had been heavily focused on developing its technological platform first, and only then move in on player base growth and turning a profit.

Besides, Arviv’s offer does not help shareholders in any way. Rather, Real Luck Group believes that Arviv is looking to access the company’s existing liquidity and cash, and it completely ignores what is best for the company’s shareholders. Real Luck Group had tried in the past to reach out to Arviv, but he declined a personal meeting.

Therefore, Real Luck Group’s board of directors remains committed to resisting the proposals. Meanwhile, the company has been introducing changes to its lineup, most recently adding Daniel Sanders as its director of marketing for Luckbox, the esports betting brand.

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