Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 7

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 7
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 ordinary shares and determinations by the Company
as to the appropriate sources of funding for its business and operations.

The obligations
of Investor to accept any Put pursuant to a Put Notice is subject to customary conditions, including that Investor is not required to
purchase any ordinary shares pursuant to a Put if it would result in Investor beneficially owning in excess of 4.99% of the Company’s
ordinary shares, and that the ordinary shares subject to the Put be registered for resale.

The net proceeds
under the Stock Purchase Agreement to the Company will depend on the frequency and prices at which the Company sells ordinary shares
to Investor. The Company expects that any proceeds received by it from such sales to Investor will be used for working capital and general
corporate purposes.

The Stock Purchase
Agreement contains customary representations, warranties, conditions and indemnification obligations of the parties. The representations,
warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely
for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties. The Stock
Purchase Agreement contains restrictions on the Company’s ability to enter into any Variable Rate Transaction (as defined in the
Stock Purchase Agreement).

The Company
further entered into a Registration Rights Agreement with Investor, pursuant to which the Company agreed to register for resale ordinary
shares underlying the Stock Purchase Agreement.

The Stock Purchase
Agreement shall only terminate upon the following events: (i) the first day of the month following the 60-month anniversary of the Effective
Date, (ii) the date on which the Investor shall have made payment of Puts pursuant to the Stock Purchase Agreement in the aggregate amount
of the Commitment Amount, or (iii) at such time that the Registration Statement is no longer effect. The Stock Purchase Agreement may
be terminated by the Company after commencement, at the Company’s discretion; provided, however, that if the Company sold less
than $5,000,000 to Investor, Company will pay to Investor a termination fee of $1,000,000, which is payable, at our option, in cash or
in shares of common stock at a price equal to the closing price on the day immediately preceding the date of receipt of the termination
notice.

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Risk Factors Our business is subject to numerous risks and uncertainties, including those described in “Risk Factors” immediately following this Prospectus summary and elsewhere in this Prospectus. These risks represent challenges