Real Luck Group faces an important leadership transition as its Chief Financial Officer (CFO), William Moore, (in photo above), tenders his resignation. This move has prompted CEO Thomas Rosander to step in as the interim CFO, signalling a critical phase in the company’s evolution. The search for a new CFO is active.

Moore’s departure comes as the company finalizes its ongoing restructuring and represents the latest in a series of resignations within the organization. Both COO Benn Timbury and Company Secretary Jo-Anne Archibald made similar decisions in September 2023.

Moore was vital part of company

William Moore had been a vital part of the Real Luck Group team since December 2021, bringing his experience as a former CFO at Markor Technology, a renowned B2B gaming company. His career includes holding senior finance positions at various B2C operators, with his more publicised roles being at Gamesys (now part of Bally Technologies), the Gala Coral Group, and bwin/Party (now under the banner of Entain). During his seven-year tenure on Gamesys’ operating board, Moore played a pivotal role in overseeing the successful launches of key ventures such as Virgin Bet, Rainbow Riches Casino and Monopoly Casino.

Real Luck Group expressed its appreciation for Moore’s dedicated service and the substantial contributions he made to the company, extending best wishes for his future endeavors.

Strategic shift in operations

The leadership transition at Real Luck Group takes place against the backdrop of a strategic shift in the company’s operations. Earlier this month, the company made the strategic decision to stop its B2C (Business-to-Consumer) operations due to a lack of investment. While the B2C segment had traditionally been the company’s primary revenue source, it is now redirecting its focus towards launching a B2B platform.

This restructuring initiative is driven by the belief that the pursuit of B2B activities will ultimately prove to be more cost-effective. Sustaining B2C operations, on the other hand, would require a significant infusion of capital. Real Luck Group has laid out comprehensive plans for the restructuring process, aiming for completion by the end of the year. This transformation is expected to result in a new corporate structure characterized by zero debt and minimal cash expenditures.

B2B platform

The company’s commitment to exploring strategic possibilities remains unwavering. This includes considering potential mergers and acquisitions, as well as exploring capital-raising opportunities. These endeavours are positioned to fuel growth in the B2B division and potentially open new avenues for a fresh start in the B2C sector.

In the financial markets, Real Luck Group Ltd. (LUCK.V) is currently trading at $0.01, reflecting the latest developments and investor sentiment in light of these strategic changes.

Background of failed merger

Restructuring of its operations follow the withdrawal of a proposed merger agreement.

Last month the operator had taken a significant step by signing a Letter of Intent for a potential merger or acquisition. At that time, Real Luck expressed optimism that such a move could strengthen its immediate prospects and facilitate sustained growth and operations.

However, upon thorough examination and assessment of the merger proposal, Real Luck determined that the proposed terms were no longer deemed “viable.” The company further stated that these potential transactions were not presently aligned with the best interests of the company and its stakeholders.

Adding to the challenge, Real Luck faced difficulties in securing the necessary capital injection, primarily due to adverse conditions in the capital markets. It was a major setback despite the company’s reports of “significant growth” since the commencement of 2023.

Suspension of betting activity

Consequently, Real Luck embarked on a course of action that entails the restructuring of its operations. As a tangible step, this restructuring brought about the immediate suspension of betting activities and new player registrations on its Luckbox.com Business-to-Customer platform.

Real Luck is redirecting its focus toward what it describes as the more “cost-effective” Business-to-Business (B2B) activities within the organization. This strategic shift comes despite the fact that, historically, all of the company’s revenue has been derived from its B2C endeavors. B2C had previously generated all the company’s revenue to date, but achieving profitability will require significantly more capital than launching the B2B platform.

The impact on players has been addressed thoughtfully. Customers of Luckbox still have the capability to withdraw funds. Real Luck has reassured its clientele that these funds are kept separate from the operator’s operational resources and will be fully supported. Real Luck also made the decision to wind down the Real Time Game Services business, which functions as an indirect material subsidiary that services the group and holds agreements with various B2C service providers, contractors and employees. To facilitate this process, insolvency practitioners are now engaged in the Isle of Man.

Real Luck confirmed that the insolvency is confined to Real Time Game Services, and no other subsidiaries within the company’s portfolio are affected. This includes Real Time Games Holding Ltd., the licence-holding entity.

The comprehensive restructuring effort is anticipated to conclude before the end of the year. According to Real Luck, it will lead to a newly optimized and more sharply focused corporate structure characterized by a lack of debt and minimal cash expenditure.

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Turning towards the future, Real Luck Group remains committed to exploring diverse strategic and operational avenues. These may encompass a potential merger, acquisition, or capital raising activities intended to support the growth of its B2B operations or possibly rekindle its B2C endeavors. Any such transactions will likely be subject to approval from the Toronto Stock Exchange Venture Exchange and the scrutiny of shareholders, with no absolute guarantee that they will come to fruition.

In the context of this restructuring, Real Luck has announced the departure of two key staff members. Chief Operating Officer Benn Timbury and Company Secretary Jo-Anne Archibald have both stepped down from their positions as officers of the business. It is important to note that Timbury continues to support the business in an advisory role, while the composition of the board of directors remains unchanged.