On Wednesday, Real Luck Group (the parent company of esports betting platform Luckbox) announced the company was able to raise about CAD 17.8 million ($14.1 million) thanks to an oversubscribed private placement deal.
According to Investopedia, oversubscribed is a term used to describe when the demand for new securities (like shares of an IPO) is greater than the number of securities offered. When a new issue is oversubscribed, “…other financial entities offering the security can adjust the price upward or offer more securities to reflect the higher-than-anticipated demand.”
Originally, Luckbox was hoping to raise $5 million. However, the company “upsized” the round to $15 million less than 24 hours later. The Esports Observer is reporting that the company plans to use this money for working capital and general corporate purposes.