Lottery.com Secures $50 Million Credit Facility and Successfully Restores Nasdaq Compliance

AUSTIN, Texas, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Lottery.com, Inc. (NASDAQ: LTRY, LTRYW) ("Lottery.com" or the "Company") is pleased to announce two significant milestones in its journey towards revenue growth and stability. The Company has successfully regained compliance with another Nasdaq listing requirement and secured a credit facility with United Capital Investments London, Ltd. ("UCIL").

Lottery.com has reached a definitive agreement with UCIL for a credit facility that sets the foundations for a more stable financial future for the business and a platform for growth. The agreement provides the Company with an initial loan of $1 million, along with an additional credit facility of up to $49 million, enabling Lottery.com to bolster its financial position and pursue strategic opportunities.

To secure the initial loan, the Company has issued a number of warrants to UCIL, allowing the latter to purchase shares of Lottery.com's common stock, capped at 15% of the Company's issued and outstanding shares. This mutually beneficial arrangement reflects the Company's commitment to sustainable growth and its commitment to creating value for its shareholders. Directors Barney Battles and Matthew McGahan have direct or indirect interest in UCIL. Their interest in UCIL was declared to the Company board prior to proceeding with the arrangement and they did not vote on the acceptance of the agreement.

Alongside the funding Lottery.com has improved its corporate governance and board composition with the recent appointment of Tamer Hassan and Paul Jordan to the Board of Directors as independent non-executive directors and members of the Audit Committee. These appointments address the deficiency raised by The Nasdaq Stock Market LLC ("Nasdaq").

On July 26, 2023, the Company received written confirmation from Nasdaq that it has regained compliance with Listing Rule 5605(c)(2). This rule mandates that the audit committee of the Company's board of directors consists of at least three members, each of whom is an independent director and meets the heightened independence standards set by Nasdaq's listing rules.

Commenting on these developments, the independent non-executive directors of the Company issued the following statement:
"Reaching an agreement with UCIL and regaining compliance with another Nasdaq listing rule are strong indications that the Company is making progress on its recovery plan. The Board felt strongly that it was time to find an alternative lender to Woodford Eurasia Assets, Ltd., as the withholding of their funding was hindering many of our operational and revenue plans. With the financial backing from UCIL, we expect to quickly move forward with our operational goals and to capitalize on the promising opportunities that lie ahead."