Lottery.com to acquire up to 51% stake in Veloce Media Group through staged investment

Lottery.com Inc. (NASDAQ:SEGG), operating as SEGG Media Corporation, disclosed Wednesday that it has entered into agreements to acquire a significant equity stake in Veloce Esports Limited, which does business as Veloce Media Group. The information is based on a press release statement included in a recent SEC filing. The announcement comes as SEGG, currently valued at $32.4 million, has shown strong momentum with a 210% price return over the past six months, according to InvestingPro data.

According to the filing, SEGG Media signed both a Subscription Agreement and a Call Option Agreement with Veloce on July 11. The agreements outline SEGG Media’s plan to purchase a minimum of 12.4% and up to 51% of Veloce’s share capital.

The transaction will occur in two tranches. For the first tranche, SEGG Media will pay £2,000,000 (approximately $2.68 million) in cash to acquire 1,663 A1 shares of Veloce at £1,224.74 per share, resulting in an initial 4.74% ownership. The second tranche involves a payment of £3,675,444.74 (about $4.92 million), with at least £1,187,500 (about $1.59 million) paid in cash and the remainder in a combination of cash and restricted SEGG Media shares, valued at a fixed price of $1.00 per share. Completion of the second tranche will increase SEGG Media’s stake to 12.4% and grant the company two seats on Veloce’s board.

The Call Option Agreement gives SEGG Media the right to increase its ownership to 51% by purchasing newly issued Veloce shares at a pre-money valuation of £50 million (about $66.91 million). To exercise the option, SEGG Media must complete both tranches and offer to purchase up to 51% of Veloce’s outstanding shares. The option expires on October 31, 2025. Upon completion, SEGG Media would gain control of Veloce’s board. Payments under the option may be made in cash, SEGG Media stock, or a combination of both.

Lottery.com’s common stock and warrants trade on the Nasdaq Stock Market under the symbols SEGG and LTRYW, respectively.

All details are based on the company’s SEC filing and accompanying press release statement.

In other recent news, Lottery.com Inc., now operating as SEGG Media, has announced a strategic rebranding, which includes a CUSIP number change to address alleged short selling activities. The company has also clarified that references to a "2023 Incentive Award Plan" in its SEC filings were incorrect, confirming that all awards since October 2023 align with the 2021 plan. Furthermore, SEGG Media plans to launch a Sports.com Super App in Q3 2025, focusing on soccer and motorsport content, with a $10 million acquisition of assets from Galaxy Racer Holdings Limited to support this initiative. The company has committed $15 million for the app’s expansion, with revenue expected from subscriptions, advertising, and gamified challenges. Additionally, Tim Scoffham has been appointed as CEO of Sports.com Media Group Limited and Lottery.com International Limited, tasked with driving international growth and integration. These developments follow the company’s recent transition to trading under the ticker "SEGG" on Nasdaq. Analyst firms have not issued recent upgrades or downgrades related to these announcements.

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