Lottery.com Inc. opts against reverse stock split

Lottery.com Inc. (NASDAQ:LTRY), a software services company with a market capitalization of $16.25 million, held its 2024 Annual Meeting at the Mar-a-Lago Club on February 20, 2025. According to InvestingPro analysis, the company appears slightly undervalued at its current price of $1.34. Shareholders voted on several key proposals, including the election of a Class II director and a potential reverse stock split.

The election of the Class II director was overwhelmingly approved with 5,863,929 votes in favor, 268 against, and no abstentions or broker non-votes. Additionally, shareholders ratified the appointment of Boladale Lawal & Co. as the company’s independent registered public accounting firm for the year ending December 31, 2024, with the same voting results as the director election.

The most significant proposal under consideration was the amendment to effect a reverse stock split of the company’s common stock in a range from one-for-2 to one-for-30, at the board’s discretion. With the stock showing strong momentum, gaining over 82% in the past six months and 185% year-to-date according to InvestingPro data, the Board of Directors decided post-meeting not to proceed with the reverse stock split at this time, despite receiving overwhelming shareholder approval.

The proposal to adjourn the Annual Meeting, if necessary, to solicit additional proxies for the reverse stock split proposal also passed with the same voting results. However, the adjournment was not required since the decision against the reverse stock split was made following the meeting.

This decision by the Board of Directors was taken after the markets closed on February 20, 2025, indicating responsiveness to the shareholder voting results and current market conditions.

The information provided in this article is based on a press release statement from Lottery.com Inc. and reflects the results and decisions made during its 2024 Annual Meeting. For deeper insights into LTRY’s financial health, performance metrics, and 12 additional exclusive ProTips, consider subscribing to InvestingPro.

In other recent news, Lottery.com Inc. has announced its intention to acquire a lottery management and gaming platform from PlusEVO Ltd. for $1.5 million in an all-stock transaction. This acquisition aims to support the company’s international expansion strategy, with plans to generate revenue from global operations by March 31, 2025. Additionally, the company has launched its international lottery operations, targeting markets in Europe and Africa, and expects to generate new revenue by the end of March.

In related developments, Lottery.com formed a global advisory board to guide its growth and strategic development, following a Notice of Effectiveness from the SEC regarding its S-1 filing. The advisory board consists of industry veterans who will help navigate the complexities of operating in various markets. Meanwhile, the company faced a compliance issue with Nasdaq for failing to hold an annual meeting of shareholders for 2023, but it has scheduled the overdue meeting for February 17, 2025.

Moreover, Lottery.com successfully regained compliance with Nasdaq’s listing standards after filing its overdue Form 10-Q for the period ended September 30, 2024. This filing resolved the risk of delisting, reaffirming the company’s commitment to adhering to regulatory requirements. These recent developments highlight Lottery.com’s ongoing efforts to expand internationally while addressing compliance challenges.

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