Luckbox Closes Oversubscribed $3.7M Financing Round

Esports Limited, who does business as Luckbox and provides real-money wagering on competitive video game tournaments, has raised $3.7M USD ($5M CAD) ahead of an expected listing on the TSX Venture Exchange (TSXV) this fall with the symbol LUCK having been reserved.

In an update to shareholders, the Luckbox’s CEO Quentin Martin said, “The management team and board of directors have been working hard to prepare for the public listing. We have enjoyed positive discussions with the TSXV, completed the Business Plan required for filing, draft financials are complete, with final audit sign-off expected by end of July. Ultimately, we anticipate receiving TSXV listing approval by early October 2020.”

The financing, via a brokered and non-brokered sale of subscription receipts, was closed in connection with a proposed go-public business combination with Elephant Hill Capital Inc. (TSXV:EH.P). The backing was upsized from the base financing target of $747K, despite taking place during the COVID-19 enforced lockdown. 

According to a company announcement, Subscription receipts sold during the financing will be exchanged for securities in Elephant Hill upon the closing of the go-public “qualifying transaction” combination of Luckbox with Elephant Hill.

When the closing of the proposed go-public business combination with Elephant Hill takes place, Elephant Hill will remain listed and all of the security holders of Luckbox (including those holding subscription receipts sold in the financing) will be exchanged for securities in Elephant Hill. Elephant Hill will then retain its listing on the TSXV which will result in Luckbox being a wholly-owned subsidiary of Elephant Hill.

The brokered portion of the subscription receipt financing was co-led by Gravitas Securities Inc. and Beacon Securities Ltd., along with a syndicate group consisting of Canaccord Genuity Corp., Echelon Wealth Partners Inc., Haywood Securities Inc., and Eight Capital Corp.