Esports betting operator Luckbox has completed a second tranche of funding, raising a further CAD$627,650 from investors, and taking the total sum raised through its current round to $4.5m (£2.7m/€2.9m/$3.3m).
The vast majority of this was raised in an oversubscribed first tranche, which raised CAD$3.9m, with the second tranche seeing the operator issue 1,195,761 subscription receipts priced at $0.42 apiece, raising $502,220. A further 298,607 receipts were then issued, for a further $125,430.
This far exceeded the company’s target of raising between CAD$2m and CAD$3m.
“Esports has been one of the few industries to thrive during the Covid-19 outbreak and its enormous potential has been brought into sharper focus,” Luckbox chief executive Quentin Martin (pictured), who took over from Lars Lien in February, commented.
“Investors have clearly taken note and their support for us puts us in an even stronger position to accelerate our growth plans.”
Money raised through the financing is to be used for general corporate and working capital purposes, and has been completed ahead of its listing on Toronto’s TSX Venture Exchange.
This is being facilitated through Elephant Hill, a capital pool company with which it will merge to secure a stock market listing.
“As evidenced by the oversubscribed subscription receipts offering, we continue to be enthusiastic about our proposed business combination with Luckbox,” Elephant Hill president and chief executive said of the second tranche.
“The esports market continues to expand with each passing month and Luckbox is positioned to be one of the leading esports betting companies in an exciting growth industry.”