Home Listing rules Lottery.com loses four board members as stock slide continues

Lottery.com loses four board members as stock slide continues

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Posted: September 9, 2022, 6:39 a.m.

Last update on: September 9, 2022, 06:51h.

Shares of struggling Lottery.com (NASDAQ:LTRY) closed higher today. But that doesn’t hide a weekly decline of 15.50% – a decline that was accelerated by news of four board member resignations.

lottery.com
Anthony DiMatteo, former director of Lotter.com. He is one of several board members who resigned this week. (Image: CBS News)

This week’s collapse by the internet lottery company extends the stock’s year-to-date loss to 95%, while raising new questions about the company’s prospects for survival.

On September 2, 2022, Lisa M. Borders, Steven M. Cohen, and William C. Thompson, Jr. each resigned as a member of the company’s board of directors and any committee. On September 8, 2022, Lawrence Anthony DiMatteo III resigned as a member of the Company’s Board of Directors and all Committees. All resignations were effective immediately,” according to a Form 8-K filed with the Securities and Exchange Commission (SEC).

This adds to Lottery.com’s growing woes, which include the recent delay of its 10-Q filing in Q2 and warnings that it may not have the capital to survive.

Lottery.com on the verge of losing its Nasdaq listing

AutoLotto, which does business as Lottery.com, debuted as a stand-alone public company last November. This follows a merger with special purpose acquisition company (SPAC) Trident Acquisitions Corp.

Due to the stock’s long run below $5 — and more recently $1 — the Nasdaq may warn the gaming company that delisting is a possibility if the stock price doesn’t rise. not. As it stands, Lottery.com is telling the exchange operator that it violates other listing standards.

“On September 9, 2022, the Company notified The Nasdaq Stock Market LLC (“Nasdaq”) that, as a result of these director resignations, the Company was no longer in compliance with Nasdaq Listing Rule 5605 ( b)(1), which requires that a majority of the board of directors be composed of independent directors as defined in Rule 5605(a)(2) and Nasdaq Listing Rule 5605(c)(2) ), which requires that the audit committee of the board of directors be composed of at least three members, each of whom is an independent director under Nasdaq listing rules and who meet enhanced independence standards for members of the audit committee, according to 8-K.

With the four aforementioned departures, the Lottery.com Board of Directors is down to five members. The company said it was working to identify and appoint “new independent directors as soon as possible.”

Lifeline Lottery.com

Lottery.com’s misfortunes, which are largely attributable to an accounting scandal and subsequent shareholder class action lawsuit, put the company in a precarious financial position. Some of that pressure may come easy, as the gaming company has secured a loan deal with Woodford Eurasia Assets Ltd.

“The term sheet provides for a convertible loan of $2.5 million to be funded no later than five business days after the fulfillment of its conditions, such as the receipt of directors’ resignations and the appointment of two new board members. administration and an interim general manager. director of the company, according to the filing with the SEC.

Lottery.com will not pay interest on the loan, but it is trading 15% of its equity at a 25% discount to the average closing price for the 10 days prior to September 6.