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Lottery.com Expands Committed Financing Facility with Generating Alpha to $300 Million

1. LTRY expanded its financing from $100M to $300M, enhancing growth potential. 2. The amendment significantly reduces costs by nearly $12M over the facility's life. 3. Control over share issuance grants strategic capital flexibility for acquisitions. 4. CEO highlights opportunity to shift from micro-cap to mid-cap status. 5. Focus on cash-flow-positive acquisitions ensures meaningful long-term value.

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Why Bullish?

The increased financing capability significantly boosts LTRY's growth initiatives, likely improving investor confidence and share price. Historical examples, such as similar capital increases in firms focused on growth, have typically correlated with price appreciation, especially when coupled with successful acquisitions.

How important is it?

The financing amendment represents a major strategic advantage for LTRY, potentially positioning the company for significant growth. Given its ability to invest in meaningful acquisitions and its statement of avoiding dilution, this development is crucial for LTRY's future.

Why Long Term?

This strategic financing positions LTRY for substantial acquisitions, which will likely affect its financial health and market perception over time. As management executes on its growth roadmap, the tangible results of these acquisitions should reflect positively on LTRY’s stock value in the long-run.

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GASPAC
FORT WORTH, Texas, June 23, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, announces that it has successfully executed an Amendment to its Stock Purchase Agreement with Generating Alpha Ltd., expanding the committed financing facility from $100 million to $300 million, while reducing the discount Generating Alpha receives saving the Company nearly $12 million over the life of the funding facility. This strategic amendment reflects the deepening partnership between Lottery.com and Generating Alpha, and includes materially improved terms for the company: Facility Increased: From $100 million to $300 million, enabling more accretive, cash-generating acquisitions to support share price growth.Improved Discount Rate: Increased from 90% to 94%, reducing the effective discount to just 6%.Cushion Eliminated: Removal of the trading cushion allows greater flexibility in capital deployment.Simplified Put Mechanism: Streamlined structure aligned with investor protections. Matthew McGahan, CEO and Chairman of Lottery.com, commented: “This strategic financing puts Lottery.com in the driver’s seat. We retain full control and discretion to issue shares based on market strength, which makes this financing far less dilutive than typical equity structures. As the share price strengthens, we can secure more capital for fewer shares. Generating Alpha’s continued support enables us to fully focus on achieving our acquisition roadmap and delivering shareholder value.” Generating Alpha remains a long-term partner, holding shares from the initial issuance and expressing strong belief in the long-term growth prospects of the Company. “This is more than a capital facility—it’s a vote of confidence in our vision,” McGahan continued. “Generating Alpha has been a committed and strategic partner as we scale Lottery.com and Sports.com. The upsized and improved facility will help accelerate the closing of multiple acquisitions, including Concerts.com that we hope will transform our profile from a micro-cap to a mid-cap platform, with real revenue, assets and global visibility.” The Company has successfully drawn down $1.87 million in recent weeks. This capital has been used for core business operational expenses, along with funding revenue-generating acquisitions and delivering tangible value to shareholders. Lottery.com and Generating Alpha have worked closely in recent months to evaluate and prioritize a pipeline of acquisition targets. This revised facility ensures that the Company can move decisively on opportunities involving cash-flow positive targets and tangible assets, potentially including acquisitions that have hard tangible real estate assets. “The expansion to $300 million was driven by real needs,” McGahan added. “We’re not sitting on ideas—we’re executing on them. This facility is not dilutive for the sake of survival. It’s being deployed to fuel accretive acquisitions and operational scale.” About Lottery.com The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu and WinTogether, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; any future findings from ongoing review of the Company’s internal accounting controls; additional examination of the preliminary conclusions of such review; the Company’s ability to secure additional capital resources; the Company’s ability to continue as a going concern; the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq; the Company’s ability to regain compliance with the Bid Price Requirement; the Company’s ability to regain compliance with Nasdaq Listing Rules; the Company’s ability to become current with its SEC reports; and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on April 22, 2025, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.  This press release was published by a CLEAR® Verified individual.

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