Company: LTRYW
Filing Date: 2025-02-10
Form Type: DEF 14A
Source: 0001493152-25-005681
Chunk: 18

Company: Lottery.com Inc.
Filing Date: 2025-02-10
Form: DEF 14A
Chunk 18
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sky laws in connection with any sales of our securities. These requirements could severely limit the market liquidity of our common stock
and/or warrants and the ability of our stockholders to sell our common stock and/or warrants in the secondary market. If our common stock
and/or warrants are delisted by Nasdaq, our common stock and/or warrants may be eligible to trade on an over-the-counter quotation system,
such as the OTCQB Market, where an investor may find it more difficult to sell our stock or obtain accurate quotations as to the market
value of our common stock and/or warrants. In the event our common stock and/or warrants are delisted from The Nasdaq Global Market,
we may not be able to list our common stock and/or warrants on another national securities exchange or obtain quotation on an over-the
counter quotation system.

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Reasons for the Proposed Reverse Stock Split

The Board’s primary objective in proposing the Reverse Stock Split is to raise the per share trading price of our Common Stock to regain compliance with the Bid Price Rule. The Board believes that the Reverse Stock Split will result in a higher per share trading price, which is intended to enable us to maintain the listing of our Common Stock on Nasdaq and generate greater investor interest in the Company.

The Board believes that maintaining the listing of our Common Stock on Nasdaq is in the best interests of the Company and our stockholders. If our Common Stock were delisted from Nasdaq, the Board believes that such delisting would adversely affect the market liquidity of our Common Stock, decrease the market price of our Common Stock, adversely affect our ability to obtain financing for the continuation of our operations and result in the loss of confidence in our company.

If the Reverse Stock Split is approved by our stockholders and implemented by the Board, we expect to satisfy the $1.00 Bid Price Rule for continued listing. However, despite the approval of the Reverse Stock Split by our stockholders and implementation by the Board, there can be no assurance that the Reverse Stock Split will result in our meeting and maintaining the $1.00 minimum closing price requirement. The effect of the Reverse Stock Split upon the market price for our Common Stock cannot be predicted, and the history of similar reverse stock splits for companies in like circumstances is varied. The market price per share of our Common Stock after the Reverse Stock Split may not rise in proportion to the reduction in the number of shares of our Common Stock outstanding resulting from the Reverse Stock Split due to, among other reasons, our performance and other