Nasdaq:LTRY
Lottery.com Announces Strong Third Quarter Results and Year-to-Date Revenue Increase of $42.8 Million Over Prior-Year Period
Third quarter 2021 revenue of $32.2 million and net income of $11.2 million
Strong growth in user transaction profitability
AUSTIN, Texas, Nov. 15, 2021 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company that is transforming how, where and when lottery is played, reported financial results for the third quarter ended September 30, 2021. These results were achieved prior to the closing of the Company’s business combination with Trident Acquisitions Corp. on October 29, 2021. The Company’s unaudited financial statements for the third quarter of 2021 and other information have been filed in a Current Report on Form 8-K/A today with the U.S. Securities and Exchange Commission (“SEC”).
Tony DiMatteo, Lottery.com Co-Founder and CEO, commented, “We are proud of the strong revenue and profitability growth we achieved in the third quarter. While we were working toward the completion of our business combination, we acted decisively to advance our plans for our global affiliate program and monetize one of our assets by leveraging a B2B partner relationship. The start of this program provided increased revenue in the third quarter and is an essential building block of our B2B2C strategy, which we expect will lead to an increased user base and additional revenue from those end users going forward. Additionally, the implementation of a dynamic pricing model and improvements to our app, such as push notifications, contributed to strong growth in gross profit per transaction compared to the prior year period.”
Mr. DiMatteo continued, “Now that we have successfully completed our business combination, we are focused on utilizing the proceeds we realized from the transaction, along with our third quarter profits, to accelerate our targeted user marketing campaigns, enter new markets, expand our product offerings, and execute strategic and synergistic acquisitions. With our low customer acquisition costs, large addressable markets and leading brands, we look forward to realizing the profitable growth opportunities before us.”
Third Quarter 2021 Results
Q3 2021 Financial Highlights | Three Months Ended | ||||||||||||
September 30, | |||||||||||||
2021 | 2020 | Change | |||||||||||
(in millions, except percentages; unaudited) | |||||||||||||
Revenues | $ | 32.2 | $ | 1.6 | $ | 30.6 | |||||||
Gross Profit | $ | 20.3 | $ | 0.9 | $ | 19.4 | |||||||
Gross Margin | 63.0 | % | 54.9 | % | 8.1 | % | |||||||
Net Income | $ | 11.2 | $ | (1.2 | ) | $ | 12.3 | ||||||
Q3 2021 User Metrics (1) | Three Months Ended | ||||||||||||
September 30, | |||||||||||||
2021 | 2020 | Change | |||||||||||
Transactions per user | 12.4 | 11.2 | 1.2 | ||||||||||
Tickets per transaction | 3.8 | 3.5 | 0.3 | ||||||||||
Revenue per transaction | $ | 9.52 | $ | 8.20 | $ | 1.32 | |||||||
Gross profit per transaction | $ | 1.69 | $ | 0.93 | $ | 0.76 | |||||||
Gross margin per transaction | 17.8 | % | 11.3 | % | 6.4 | % | |||||||
(1) Excludes B2B users who made purchases through an affiliate or API partner |
Third quarter 2021 revenue was $32.2 million, an increase of $30.6 million from the third quarter of 2020. The growth was driven by the global affiliate marketing program.
Third quarter 2021 gross profit was $20.3 million, an increase of $19.4 million from the third quarter of 2020. The increase was driven by the global affiliate marketing program as well as improved user profitability.
Third quarter 2021 gross profit per transaction was $1.69, or a $0.76 increase from the third quarter of 2020. The increase was driven by the implementation of a dynamic pricing model and improvements made to the Company’s platform, including push notifications, which contributed to higher tickets sold per transaction and higher revenue per transaction.
Third quarter 2021 net income was $11.2 million, compared to a net loss of $1.2 million in the third quarter of 2020. The improvement was driven by the increase in gross profit partially offset by expenses associated with the business combination.
Outlook and Update Following Business Combination
The Company expects to meet or exceed its previous guidance of $71 million for full year 2021 revenue.
On October 29, 2021, the Company successfully completed its business combination with Trident Acquisitions Corp. As a result of the transaction, Lottery.com received $42.8 million in net proceeds and converted $60 million of debt and accrued interest into equity. Following the completion of the business combination, the Company’s top strategic priorities include:
- Continuing development of Project Nexus’ blockchain-based gaming platform and launch of its first proprietary lottery game in 2022;
- Initiating new targeted marketing campaigns to broaden its B2C user base;
- Entering new markets in both the U.S. and internationally by the end of 2021 and entering New York and New Jersey in 2022;
- Developing and continually introducing new products to the Lottery.com platform, including additional state-specific games and digital scratcher games;
- Adding new affiliates and API partners to the Company’s B2B segment; and
- Executing on strategic and synergistic acquisitions, including those that will drive the Sports.com platform.
About Lottery.com
Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players and commercial partners located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. 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. For more information, visit http://www.lottery.com.
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) Lottery.com’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 Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its 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 Lottery.com 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 with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com 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.
AutoLotto, Inc.
Condensed Consolidated Balance Sheets
As of September 30, | As of December 31, | |||||||
2021 | 2020 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 1,179,467 | $ | 3,825,511 | ||||
Restricted cash | – | 6,950,000 | ||||||
Accounts receivable | 33,072,278 | 26,195 | ||||||
Prepaid expenses | 10,815,458 | 22,013,110 | ||||||
Other current assets | 238,627 | 788,033 | ||||||
Total current assets | 45,305,830 | 33,602,849 | ||||||
Investments | 250,000 | 250,000 | ||||||
Goodwill | 17,937,691 | 12,997,048 | ||||||
Intangible assets, net | 27,820,753 | 3,211,250 | ||||||
Property and equipment, net | 1,297,885 | 670,952 | ||||||
Total assets | $ | 92,612,159 | $ | 50,732,099 | ||||
Liabilities | ||||||||
Trade payables | $ | 2,986,762 | $ | 2,176,621 | ||||
Deferred revenue | 598,214 | 7,763,593 | ||||||
Convertible debt, net – current | 8,912,163 | 8,882,665 | ||||||
Notes payable – current | 4,077,982 | 12,207,180 | ||||||
Accrued interest | 3,435,111 | 721,717 | ||||||
Accrued and other expenses | 4,992,522 | 2,335,350 | ||||||
Total current liabilities | 25,002,754 | 34,087,126 | ||||||
Convertible debt, net – non current | 31,569,218 | 10,000 | ||||||
Other long term liabilities | 1,600,000 | – | ||||||
Total liabilities | 58,171,972 | 34,097,126 | ||||||
Stockholders’ Equity | ||||||||
Controlling Interest | ||||||||
Common stock | 5,912 | 5,159 | ||||||
Par value $.001, 8,610,000 shares authorized, 5,910,980 and 5,158,607 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
Preferred stock – series seed | 63 | 63 | ||||||
Par value $.0001, 633,000 shares authorized, 633,000 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
Preferred stock – series A | 122 | 122 | ||||||
Par value $.0001, 1,220,000 shares authorized, 1,220,000 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
Preferred stock – series A1 | 22 | 22 | ||||||
Par value $.0001, 225,000 shares authorized, 223,749 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
Preferred stock – series A2 | 30 | 30 | ||||||
Par value $.0001, 305,000 shares authorized, 302,668 issued and outstanding as of September 30, 2021 and December 31, 2020 respectively | ||||||||
Additional paid-in capital | 123,368,737 | 111,770,147 | ||||||
Accumulated deficit | (91,577,868 | ) | (95,140,570 | ) | ||||
Total AutoLotto Inc. stockholder’s equity | 31,797,018 | 16,634,973 | ||||||
Noncontrolling Interest | 2,643,169 | – | ||||||
Total Stockholders’ Equity | 34,440,187 | 16,634,973 | ||||||
Total Liabilities & Stockholders’ Equity | $ | 92,612,159 | $ | 50,732,099 |
AutoLotto, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended September 30, 2021 and 2020 and Nine Months Ended
September 30, 2021 and 2020
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue | $ | 32,248,036 | $ | 1,602,916 | $ | 47,035,327 | $ | 4,197,314 | ||||||||
Cost of revenue | 11,920,721 | 722,363 | 15,925,072 | 1,770,885 | ||||||||||||
Gross profit | 20,327,315 | 880,554 | 31,110,255 | 2,426,429 | ||||||||||||
Operating expenses: | ||||||||||||||||
Personnel costs | 1,614,063 | 974,139 | 4,138,240 | 2,975,464 | ||||||||||||
Professional fees | 976,679 | 182,502 | 5,174,378 | 638,878 | ||||||||||||
General and administration | 1,085,431 | 163,691 | 4,355,760 | 593,380 | ||||||||||||
Depreciation and amortization | 1,530,026 | 355,671 | 2,904,000 | 1,065,490 | ||||||||||||
Total operating expenses | 5,206,199 | 1,676,004 | 16,572,378 | 5,273,211 | ||||||||||||
Income (loss) from operations | 15,121,116 | (795,450 | ) | 14,537,877 | (2,846,782 | ) | ||||||||||
Other expenses | ||||||||||||||||
Interest expense | 3,789,316 | 296,517 | 9,318,638 | 881,553 | ||||||||||||
Other expense | 178,952 | 68,218 | 1,656,540 | 416,858 | ||||||||||||
Total other expenses, net | 3,968,268 | 364,735 | 10,975,178 | 1,298,411 | ||||||||||||
Net income (loss) | $ | 11,152,848 | $ | (1,160,185 | ) | $ | 3,562,699 | $ | (4,145,193 | ) | ||||||
Net income (loss) per common share | ||||||||||||||||
Basic | $ | 1.89 | $ | (0.22 | ) | $ | 0.64 | $ | (0.80 | ) | ||||||
Diluted | $ | 0.24 | $ | (0.22 | ) | $ | 0.08 | $ | (0.80 | ) | ||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 5,900,980 | 5,158,607 | 5,534,794 | 5,158,607 | ||||||||||||
Diluted | 45,956,427 | 5,158,607 | 45,590,241 | 5,158,607 |
AutoLotto, Inc.
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, |
||||||||
2021 | 2020 | |||||||
(unaudited) | ||||||||
Cash flow from operating activities | ||||||||
Net income (loss) | $ | 3,562,698 | $ | (4,145,193 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 2,904,000 | 1,065,490 | ||||||
Amortization of debt discount | 2,296,747 | 126,096 | ||||||
Amortization of beneficial conversion feature | 4,191,530 | 494,639 | ||||||
Stock based compensation expense | 6,479 | 13,872 | ||||||
Forgiveness of PPP Loan | (493,225 | ) | – | |||||
Loss on extinguishment of debt | 71,174 | – | ||||||
Issuance of debt to pay expenses | 1,003,983 | – | ||||||
Changes in assets & liabilities: | ||||||||
Accounts receivable | (33,046,083 | ) | 1,625 | |||||
Prepaid expenses | 11,202,143 | 103,253 | ||||||
Other current assets | 561,321 | (23,975 | ) | |||||
Trade payables | 808,670 | (391,352 | ) | |||||
Deferred revenue | (7,165,379 | ) | 578,759 | |||||
Accrued interest | 2,758,009 | 260,818 | ||||||
Accrued and other expenses | 3,979,552 | 399,445 | ||||||
Net cash used in operating activities | (7,358,379 | ) | (1,516,522 | ) | ||||
Cash flow from investing activities | ||||||||
Purchases of property and equipment | (1,097,993 | ) | (21,915 | ) | ||||
Purchases of intangible assets | (3,000,000 | ) | – | |||||
Cash paid for acquisitions, net of cash acquired | (10,012,540 | ) | – | |||||
Net cash used in investing activities | (14,110,533 | ) | (21,915 | ) | ||||
Cash flow from financing activities | ||||||||
Issuance of digital securities | 108,332 | 487,494 | ||||||
Proceeds from exercise of options | 47,130 | – | ||||||
Proceeds from issuance of convertible debt | 13,483,500 | 365,000 | ||||||
Proceeds from government loan | – | 643,125 | ||||||
Proceeds from issuance of notes payable | – | 27,699 | ||||||
Principal payments on notes payable | (1,766,093 | ) | (44,148 | ) | ||||
Net cash provided by financing activities | 11,872,869 | 1,479,170 | ||||||
Net change in net cash and restricted cash | (9,596,044 | ) | (59,266 | ) | ||||
Cash at beginning of period | 10,775,511 | 158,492 | ||||||
Cash at end of period | $ | 1,179,467 | $ | 99,226 | ||||
SUPPLEMENTAL DISCLOSURES: | ||||||||
Interest paid in cash | $ | 40,916 | $ | – | ||||
Non cash investing and financing activities | ||||||||
Conversion of convertible debt into common stock | $ | 935,000 | $ | – | ||||
Capitalization of interest from loan extinguishment | $ | 44,614 | – | |||||
Purchase of intangible assets through the issuance of convertible debt | $ | 15,450,000 | $ | – | ||||
Issuance of convertible debt in exchange for outstanding liabilities | $ | 2,108,983 | $ | – | ||||
Issuance of convertible debt in exchange for notes payable | $ | 4,531,250 | ||||||
Common stock issued as part of acquisition | $ | 459,691 | $ | – |
Lottery.com Contact:
Matthew Schlarb
VP, Investor Relations
(512) 585-7789
[email protected]
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Nasdaq:LTRY
Lottery.com, Inc. Nominates Warren Macal to Its Board of Directors
AUSTIN, Texas, April 22, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in the lottery and gaming sector, is pleased to announce the nomination of Warren Macal to its Board of Directors. Macal will be seated as a director at the Company’s next Board of Directors meeting following the successful completion of required background checks. Macal’s nomination follows the December 2023 $18 million investment commitment from Prosperity Investment Management (“PIM”), subject to due diligence. The investment commitment by PIM is aimed at accelerating Lottery.com’s strategic acquisitions and market development initiatives.
Warren Macal, currently the Managing Director at PIM and the head of its PIM Motorsport Investment Division, brings more than 15 years of extensive experience in wealth management and strategic financial planning. Specializing in the financial needs of high-net-worth individuals and professional athletes, particularly in the motorsports arena, Macal’s expertise will be invaluable as Lottery.com continues to expand its global reach and product offerings and develops its Sports.com brand, which aims to become the premier destination for sports entertainment, offering an unparalleled array of interactive and engaging sports content.
Matthew McGahan, CEO of Lottery.com, commented:
“Warren’s profound knowledge in wealth management and his strategic insight into the sports sector will provide a significant advantage to our board. His leadership at Prosperity Investment Management, particularly in maximizing sports-related opportunities, aligns perfectly with our vision for growth and innovation. This is particularly relevant as we roll out our Sports.com platform, which is designed to connect fans, athletes, and sports influencers in a unique digital ecosystem, making Sports.com the go-to destination for sports enthusiasts across the globe.”
“Warren’s nomination is part of a broader strategic synergy between Prosperity Investment Management and Lottery.com, which includes leveraging high-profile sports partnerships and expanding into new markets, particularly in the digital sports and gaming sectors.”
Warren Macal said:
“I am excited to accept the nomination to join the Board of Directors at Lottery.com and look forward to contributing to the Company’s vision. This partnership represents a unique opportunity to blend my skills in the worlds of investment and sports management, with digital gaming and content creation, delivering value for all stakeholders involved.”
Lottery.com Contact: [email protected]
Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players and commercial partners located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. 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. For more information, visit http://www.lottery.com.
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) Lottery.com’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 Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its 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 Lottery.com 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 with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com 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.
Nasdaq:LTRY
Lottery.com Regains Full Nasdaq Compliance
AUSTIN, Texas, April 11, 2024 (GLOBE NEWSWIRE) — Lottery.com, Inc. (the “Company”) has received written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company has maintained a minimum market value of publicly held shares (“MVPHS”) of $5,000,000 or greater for the last ten consecutive business days. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5450(b)(1)(C) and the matter is now closed. Regaining full compliance with Nasdaq paves the way for future growth.
Lottery.com CEO, Mr. Matthew McGahan commented:
“Regaining full compliance with Nasdaq is a pivotal milestone for Lottery.com and its shareholders. This underscores the success of our decision to focus on good corporate governance, operational integrity, and financial transparency. Our status as a Nasdaq-listed entity is essential to our business framework. It fosters a democratic approach to decision-making, empowering a broad spectrum of stakeholders to actively shape the trajectory of innovative ventures and opportunities at both Lottery.com and Sports.com. We are here to serve the interests of all our shareholders and won’t be swayed by a small minority represented by discredited individuals with vested self-interests.”
“The current management team has worked diligently on the business turnaround in the face of many headwinds and the Company is now well positioned to push the boundaries in the gaming and sports sectors, taking advantage of revenue generating opportunities in order to maximize shareholder value. I would like to thank our shareholders for their ongoing trust and support in the management team. Additionally, I would like to personally express my appreciation to our entire team for their continued dedication and support.”
Lottery.com Contact: [email protected]
Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players and commercial partners located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. 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. For more information, visit http://www.lottery.com.
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) Lottery.com’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 Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its 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 Lottery.com 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 with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com 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.
Nasdaq:LTRY
Lottery.com, Inc. Announces Voluntary Dismissal by Woodford Eurasia Assets of Proxy Misstatement Lawsuit Against Lottery.com and its Directors
WILMINGTON, Del., Feb. 20, 2024 (GLOBE NEWSWIRE) — Lottery.com Inc., leading online lottery services provider announces that the legal action alleging proxy misstatements filed in federal court by Woodford Eurasia Assets Ltd against Lottery.com and the individual members of the Company’s Board of Directors, including Chairman Matthew McGahan, has been voluntarily dismissed without prejudice by Woodford.
The Notice of Voluntary Dismissal Without Prejudice was filed by Woodford in the United States District Court for the District of Delaware on February 14, 2024 in Case No. 23-1317-GBW, which stated that Woodford provides notice of dismissal of all claims without prejudice against Defendants Lotttery.com and its directors.
This notice of dismissal comes after Woodford filed its Complaint and unsuccessfully sought to enjoin the Company and its directors from holding the Special Meeting of Stakeholders, wherein the shareholders voted to allow the sale of stock that potentially could result in a change of control of the Company to its primary lender, United Capital Investments London Limited (“UCIL”). Woodford’s Motion For A Temporary Restraining Order, Preliminary Injunction and Expedited Discovery was denied by the Court by Memorandum Order on November 17, 2023, in which Honourable Judge Gregory B. Williams stated, “the Court is not convinced…the directors’ interest in UCIL substantially change a voter’s mind and is not convinced that [Woodford] has shown a likelihood of success of the merits.” The Court added, “public‘s interest is best served by permitting the Special Meeting to continue in line with the Company’s bylaws.”
With the dismissal of this lawsuit by Woodford, no further action is required by Lottery.com or its directors.
Matthew McGahan, Chairman of Lottery.com and Sports.com, commented:
“We are pleased to put this matter behind us. This resolution allows us to focus on our mission to offer innovative solutions in the lottery industry and to transform the sports media and entertainment arena with sports.com. We can now get back to focusing on providing value for our customers and stakeholders. We remain committed to operating with the highest standards of integrity and look forward to continuing our work in revolutionising the lottery and sports media experience worldwide. I would like to express my gratitude to our legal advisors, my fellow Board Directors and all those who have supported the company through this process.”
Lottery.com Contact: [email protected]
Lottery.com is a leading technology company that is transforming how, where and when lottery is played. Its engaging mobile and online platforms enable players and commercial partners located in the United States and internationally to remotely purchase legally sanctioned lottery games. Fans and subscribers look to Lottery.com for compelling, real-time results on more than 800 lottery games from more than 40 countries. Additionally, through WinTogether.org, Lottery.com is fundamentally changing how non-profit donors are incentivized to action by gamifying charitable giving. 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. For more information, visit http://www.lottery.com.
About Sports.com
Emerging from the strategic acquisition of SportLocker, Sports.com is poised to become the premier destination for sports entertainment, offering an unparalleled array of interactive and engaging sports content. For more information, visit www.sports.com.
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) Lottery.com’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 Lottery.com’s accounting staffing levels; (iii) the effects of competition on Lottery.com’s future business; (iv) risks related to Lottery.com’s dependence on its intellectual property and the risk that Lottery.com’s technology could have undetected defects or errors; (v) changes in applicable laws or regulations; (vi) risks related to the COVID-19 pandemic and its 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 Lottery.com 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 with the SEC under the heading “Risk Factors” and the other documents filed, or to be filed, by Lottery.com 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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