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FORT WORTH, Texas - Lottery.com Inc. (NASDAQ:LTRY, LTRYW), a digital lottery and sports entertainment technology firm with a market capitalization of $12.83 million, has acquired Spektrum Ltd, a subsidiary of PlusEVO Ltd, in an all-stock deal valued at $1.5 million. The agreement will see PlusEVO receive 500,000 shares of Lottery.com’s restricted common stock over a 30-month period at $3 per share, significantly above the current trading price of $1.07. According to InvestingPro data, the stock has shown remarkable volatility, with a 131.4% gain year-to-date despite recent pullbacks.
This strategic move is aimed at bolstering Lottery.com’s international market presence and is expected to support its revenue growth plans, building on the company’s impressive 190.77% revenue growth over the last twelve months. The acquisition provides Lottery.com with a technology platform specifically designed for international use, which is anticipated to drive user engagement by introducing new types of game play beyond traditional lottery offerings.
Matthew McGahan, Chairman and CEO of Lottery.com, stated, "This acquisition brings value everywhere for us, from new market entry, additional revenue lines, increased value from owning more of our own technology to service consumers and of course, delivering more value back to the company’s shareholders."
The company has expressed that owning its proprietary technology stack will lead to improved operational efficiencies, enhanced margins, and long-term value creation. This focus on margin improvement is crucial, as InvestingPro analysis reveals current gross profit margins are at 7.6%. This aligns with Lottery.com’s commitment to profitable global growth and its goal to launch and generate revenue from international operations by March 31, 2025. InvestingPro subscribers have access to 10+ additional key insights about LTRY’s financial health and growth prospects.
The forward-looking statements in this announcement involve risks and uncertainties, including the company’s ability to maintain effective internal controls, the impact of competition, changes in laws or regulations, and other economic and business factors. With an InvestingPro Financial Health Score of 1.31 (labeled as WEAK) and a current ratio of 0.67, investors should carefully consider these risk factors. These statements are based on current expectations and assumptions, and actual results could differ materially from those projected.
The information in this article is based on a press release statement from Lottery.com Inc.
In other recent news, Lottery.com Inc. announced its decision not to proceed with a reverse stock split despite shareholder approval at its 2024 Annual Meeting. The board’s decision aligns with the shareholder voting results and reflects current market conditions. Additionally, Lottery.com has formed a global advisory board to guide its expansion and strategic development, with industry veterans providing insights to enhance operations and explore new markets. The company also revealed plans to acquire a lottery management and gaming platform from PlusEVO Ltd. to support its international expansion. This acquisition, valued at $1.5 million in an all-stock transaction, aims to facilitate Lottery.com’s entry into markets in Europe and Africa by March 31, 2025.
Furthermore, Lottery.com has launched its international lottery operations, targeting new markets and expecting to generate revenue by the end of March. The company is partnering with local players to cater to regional preferences and adhere to regulatory requirements. In regulatory news, Lottery.com faces potential delisting from Nasdaq due to non-compliance with listing rules, specifically the failure to hold an annual meeting for fiscal year 2023. The company is addressing this issue by scheduling its overdue 2024 Annual Meeting. These recent developments highlight Lottery.com’s strategic efforts to expand globally while addressing compliance challenges.
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