Real Luck Group has released a statement, commenting on two “inconsistent” proposals submitted by Koas Captial Founder and CEO Adam Arviv. In its rebuttal, the Canadian company described both proposals as “contradictory and opportunistic.”
The 'activist shareholder' recently suggested a merger with Real Luck and valued the company at $0.09 per share. Arviv later “appeared to change his mind and proposed a ‘wind-down of the company.’”
Real Luck stated that the proposals “if pursued would not be in the best interests of the Company and its shareholders” and questioned whether Arviv was “acting in good faith.”
Real Luck Group said in its statement: “Mr. Arviv appears to have recently acquired shares of the company and has not indicated his level of ownership.
“Neither proposal reflects the value represented by the company's significantly growing business and is also well below the company's net cash position.”
The company went on to say that it holds a “strong cash position,” with “no debt and a robust plan to reach profitability and scale” during the next six to ten months.
“This makes the Company an industry outlier and a target for individuals such as Mr. Arviv, seeking to gain access to the Company's cash, with no regard for its stakeholders,” Real Luck said.
Real Luck has opted to meet with Arviv and said it is prepared to do so. The company said it has proposed an in-person meeting with Arviv and has made two attempts to schedule a discussion. According to the company, Arviv declined both meetings.
Real Luck Group is the parent company of Luckbox, which supplies licensed esports betting, sports betting and casino games for desktop and mobile devices. Luckbox is listed on the Toronto Venture Exchange.
