Company: LTRYW
Filing Date: 2025-05-07
Form Type: S-1/A
Source: 0001641172-25-009053
Chunk: 106

Company: Lottery.com Inc.
Filing Date: 2025-05-07
Form: S-1/A
Chunk 106
---
; 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 Proceedings” section of this form.

Loan Agreement with United Capital Investments London Limited

The Company entered
into a credit facility (the “UCIL Credit Facility”), which is represented by a loan agreement, which was initially entered
into on July 26, 2023, and was amended and restated on August 8, 2023, and subsequently amended on August 18, 2023 and amended and restated
on February 16, 2024, the “UCIL Loan Agreement”). The UCIL Loan Agreement is with United Capital Investments London Limited
(“UCIL”), an entity in which each of Matthew McGahan, the Company’s Chief Executive Officer and Chair of the Company’s
Board, and Barney Battles, a former member of the Board, have a direct or indirect interest. The decision by the Company to enter
into the UCIL Loan Agreement followed an acknowledgment by the Company that it had not received the requisite funding on a timely basis
that it expected from Woodford, despite the Company making several requests to Woodford for said funding under the Woodford Loan Agreement.
Moreover, the Board of Directors determined that it was in the best interest of the Company and its stockholders to enter into the UCIL
Loan Agreement with UCIL, as an alternative lender to Woodford, upon receiving an event of default notice on July 21, 2023 (the “Default
Notice”) and an event of default and crystallization notice on July 25, 2023 (the “Crystallization Notice”) from Woodford
under the Woodford Loan Agreement. Neither McGahan or Battles participated in the vote on the UCIL agreement to ensure proper independence
and correct corporate governance. On July 24, 2023, the Company responded to the Default Notice disputing that an event of default had
occurred given the Company’s earlier announcement that UCIL had agreed to enter into a funding arrangement with the Company. On
July 27, 2023, the Company replied to the Crystallization Notice denying that an event of default occurred or continued, and further
asserted that Woodford’s attempt for crystallization was inappropriate and unlawful under