Lottery.com to acquire gaming platform for global expansion

FORT WORTH - Lottery.com Inc. (NASDAQ: LTRY, LTRYW), a prominent digital lottery and sports entertainment technology firm with a market capitalization of $16.9 million and remarkable year-to-date returns of 191%, today announced an agreement to acquire a sophisticated lottery management and gaming platform from PlusEVO Ltd. According to InvestingPro data, the company has shown significant price volatility, with the stock currently trading at $1.41. The move is aimed to bolster the company's international expansion and is in line with its strategy to launch and generate revenue from global operations by March 31, 2025.

The acquired platform supports a variety of gaming applications, including lottery and sweepstakes, and is designed to offer a localized user experience while complying with regulatory standards. The all-stock transaction is valued at $1.5 million, to be paid over 30 months with shares priced at $3 each. This strategic move comes as the company faces financial health challenges, with InvestingPro analysis indicating weak gross profit margins of 7.6% and a current ratio of 0.67, suggesting potential liquidity concerns.

Matthew McGahan, Chairman of Lottery.com, stated that the acquisition provides the company with the flexibility and control needed to accelerate its expansion into new markets such as Europe and Africa. By owning the technology stack, Lottery.com aims to reduce its dependency on third-party licenses, which should enable quicker innovation and an improved customer experience. McGahan also mentioned that their successful fundraising efforts have expedited their international growth strategy by over nine months.

The technology stack features a microservices architecture, which allows for high availability and scalability, optimizing resource utilization for international markets. The system's back-office operates on a separate database to maintain transactional performance, and it incorporates Kafka logic for event-driven workflows, which enhances system responsiveness and reduces latency.

Security is a key aspect of the new platform, with enhanced protocols for internal microservice communication to protect data integrity and privacy. This diverse technology stack also allows Lottery.com to select the most appropriate technology for each function, which is expected to optimize performance and foster innovation.

This news is based on a press release statement and contains forward-looking statements. The actual results and the success of the acquisition could differ due to various risks and uncertainties, as detailed in the company's SEC filings. For comprehensive analysis and additional insights into Lottery.com's financial health, growth prospects, and 13 more exclusive ProTips, consider subscribing to InvestingPro. For more information, please refer to the company's reports filed with the SEC, available at www.sec.gov.

"In other recent news, Lottery.com has announced several key developments. The company has expanded its operations to international markets, aiming to generate new revenue by the end of March. This expansion is supported by partnerships within the gaming space and the introduction of a technology platform tailored for international audiences.

Lottery.com also faced a potential Nasdaq delisting due to a lapse in its annual meeting. However, the company has since regained compliance with Nasdaq's listing standards after filing its overdue Form 10-Q for the period ended September 30, 2024. In a move to ensure the integrity and transparency of its financial reporting, the company appointed Boladale Lawal & Company as its new independent registered public accounting firm.

In addition, Lottery.com has entered into a $100 million stock purchase agreement with Generating Alpha Ltd. This agreement allows the investor to acquire up to $100 million of Lottery.com's registered common stock, providing the company with additional capital resources. These are the recent developments for Lottery.com, based on information from press releases and SEC filings."

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