Luckbox operator Real Luck Group has rejected two proposals to sell the business and to gradually end it.
According to a report in leading iGaming news website iGB, Real Luck said it received two proposals from Bragg Gaming Group co-founder Adam Arviv – described as an “activist investor.”
The first proposal included a merger with a “private gambling company”, but Luckbox later claimed that Arviv “appeared to have changed his mind” after proposing bringing Luckbox to a gradual end by winding it down.
The operator said that this proposal was ignoring the group’s platform and its player base which continues to grow, with the Luckbox board adding that both proposals, “would not be in the best interests of the company and its shareholders”.
In a statement, Luckbox said that “neither proposal reflects the value represented by the company’s significantly growing business and is also well below the company’s net cash position.”
Luckbox also said that the company is undervalued, as “Real Luck Group has a strong cash position, no debt and a robust plan to reach profitability and scale in the next 6-10 months”, and that this makes the company a target for individuals such as Arviv, who it alleged was “seeking to gain access to the company’s cash, with no regard for its stakeholders.”
While the board explained that its duty is to resist such “opportunistic conduct”, it added that it was prepared to meet Arviv in his capacity as a shareholder.
An attempt to set up a meeting with Arviv, had been declined, the board added.
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