Company: LTRYW
Filing Date: 2025-04-11
Form Type: S-1
Source: 0001641172-25-003901
Chunk: 106

Company: Lottery.com Inc.
Filing Date: 2025-04-11
Form: S-1
Chunk 106
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 agreed to grant warrants to purchase shares of common stock to Woodford (the “Woodford Warrants”) in an amount equal to 15% of the Company’s then issued and outstanding shares of common stock. Each Woodford Warrant has an exercise price equal to the average of the closing price of the Company’s common stock for each of the ten days prior to the first amount being debited from the bank account of Woodford, which equates to an exercise price of $5.60 per share. In the event the Company fails to repay the amounts borrowed when due or Woodford fails to convert the amount owed into shares, the exercise price of the warrants may be offset by amounts owed to Woodford, and in such case, the exercise price of the warrants will be subject to a further 25% discount.

In connection with our entry into the Woodford Loan Agreement, the Company also entered into a Loan Agreement Deed, Debenture Deed and Securitization, with Woodford (the “Security Agreement”), which provides Woodford with a first floating charge security interest over all present and future assets of the Company in order to secure the repayment of amounts owed under the Loan Agreement.

On June 12, 2023, the Company entered into an amendment of the Woodford Loan Agreement (the “Woodford Loan Agreement Amendment”). The Woodford Loan Agreement Amendment provides that Woodford shall henceforth be able to convert, in whole or in part, the outstanding balance of its loan into the conversion shares at a conversion price that represents a further 25% discount to the original conversion price of 20%. The validity and application of the Woodford Loan Agreement Amendment is disputed by the Company.

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Despite requests
from the Company, Woodford has repeatedly among other things: failed to prove the amounts borrowed by the Company or claimed to have
been advanced by Woodford to the Company; failed to indicate if it would accept accelerated payment of those verified amounts; failed
to provide an anti-money laundering acceptable account to which payment could be made by the Company and failed to explain failure to
respond to requests for other funding to be accepted in the context of the Woodford Loan Agreement; failed to respond to requests for
funding under the accordion facility of the Woodford Loan Agreement; and failed to respond to allegations of money laundering and conspiracy
to defraud the Company and the matter has been referred to the Company’s legal counsel.

Information regarding
ongoing legal proceedings with Woodford can be found in the “Legal