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FORT WORTH, Texas - Lottery.com Inc. (NASDAQ:LTRY) announced Thursday it will launch a Sports.com Super App in select global markets during the third quarter of 2025, focusing initially on soccer and motorsport content. The company’s stock, which has surged over 133% year-to-date according to InvestingPro data, reflects growing investor interest in its digital transformation efforts.
The company described the app as a digital platform combining live streaming, social engagement, e-commerce and gamification features. To accelerate development, Lottery.com, currently valued at $30.01 million in market capitalization, has signed a Letter of Intent to acquire a 51% controlling interest in sports and technology assets from Galaxy Racer Holdings Limited (GXR) in a deal valuing the transaction at $10 million pre-money.
According to the press release, the GXR app has already achieved more than one million monthly active subscribers. The new Super App will integrate six primary features: live streaming, community chat hubs, stats-based social media, e-commerce, gaming options, and sports news.
"This acquisition and the launch of the Sports.com Super App is the culmination of a precise strategy to consolidate fragmented sports experiences," said Mark Bircham, Director of Sports.com, in the statement.
The acquisition agreement allows Lottery.com to fund the $5.1 million initial investment through cash, stock, or a combination at a fixed $3.00 share price. The company has also pledged a $15 million financing commitment to support the app’s expansion. According to InvestingPro analysis, which offers 12 additional investment insights for subscribers, the company maintains impressive gross profit margins of 61.22% despite current market challenges.
The deal includes a call option for Lottery.com to acquire 100% ownership of the new entity by the end of 2027. Exclusivity has been secured through June 30, 2025, with an automatic 30-day extension, and closing is anticipated on or before August 1, 2025.
The company stated that revenue streams for the app will include premium streaming subscriptions, in-app advertising, merchandising and interactive gamified challenges. While the company’s current ratio of 0.52 indicates some liquidity challenges, management expects the new revenue streams to strengthen its financial position.
In other recent news, Lottery.com Inc. has entered into a significant $300 million stock purchase agreement with Generating Alpha Ltd., allowing for the purchase of Lottery.com’s common stock under specified conditions. The company has also regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the exchange. Additionally, Lottery.com has signed an agreement to acquire 90% of Nook Holdings Limited, a Dubai-based sports and wellness incubator, for approximately $2.5 million, marking a strategic expansion into the sports sector.
Further developments include the appointment of Tim Scoffham as CEO of Sports.com Media Group Limited and Lottery.com International Limited, with a focus on international expansion and revenue growth. Tamer Hassan has been named president of Sports.com Studios, a new content division aimed at developing sports-focused programming. These moves come as Lottery.com continues to address financial and regulatory challenges while expanding its brand portfolio, which includes Sports.com, Tinbu, and WinTogether.
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