Company: LTRYW
Filing Date: 2025-05-14
Form Type: S-1/A
Source: 0001641172-25-010091
Chunk: 7

Company: Lottery.com Inc.
Filing Date: 2025-05-14
Form: S-1/A
Chunk 7
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 an amount to equal shares of the Company’s common stock,
not to exceed 4.99% of the Company’s issued and outstanding. Any amount that would exceed 4.99% of the Company’s issued and
outstanding shall be issued in the form of a prefunded Common Stock Purchase Warrant. The aggregate exercise price of this Warrant was
pre-funded to the Company prior to any exercise and, consequently, no additional consideration shall be required to be paid. The Stock
Purchase Agreement is attached hereto as Exhibit 10.31. In addition, the Company has agreed to register the Investor Selling Shareholder’s
shares and the shares issuable pursuant to the Common Stock Purchase Warrant pursuant to Exhibit A to Exhibit 10.31, the “Registration
Rights Agreement.”

The Company will
control the timing and amount of any sales of ordinary shares to Investor Selling Shareholder. Actual sales of our ordinary shares
to Investor Selling Shareholder as a Put under the Stock Purchase Agreement will depend on a variety of factors to be determined
by the Company from time to time, which may include, among other things, market conditions, the trading price of the Company’s
ordinary shares and determinations by the Company as to the appropriate sources of funding for its business and operations.

The obligations
of Investor Selling Shareholder to accept any Put pursuant to a Put Notice is subject to customary conditions, including that
Investor Selling Shareholder is not required to purchase any ordinary shares pursuant to a Put if it would result in Investor
Selling Shareholder 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 Selling Shareholder. The Company expects that any proceeds received by it from such sales to Investor Selling Shareholder
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).