Lottery.com reached a definitive agreement with United Capital Investments London (UCIL) for a credit facility that will provide 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._x000D_
To secure the initial loan, Lottery.com issued warrants to UCIL that allow it to purchase shares of Lottery.com’s common stock, capped at 15% of the company’s issued and outstanding shares. Barney Battles and Matthew McGahan, who are directors of Lottery.com, have direct or indirect interest in UCIL. Their interest in UCIL was declared to Lottery.com’s board prior to proceeding with the arrangement and they did not vote on the acceptance of the agreement.
In addition to the new facility, on July 26, Lottery.com received written confirmation from Nasdaq that it has regained compliance with listing rule 5605(c)(2), which mandates that the audit committee of the company’s board of directors consist of at least three members, each of whom is an independent director and meets the independence standards set by Nasdaq’s listing rules.
