After announcing it became the official sponsor for Thunder Awaken as Team Battles in TI11 last week, Real Luck Group has now explained why it rejected a couple of merger proposals from Kaos Capital’s founder and chief executive officer Adam Arviv. The group called Arviv’s proposals “contradictory and opportunistic,” questioning whether he had been acting in good faith when making them.

A Change of Heart

Arviv initially suggested a merger with Real Luck Group, valuing it at $0.09 per share. He then had an apparent change of heart when he proposed a “wind-down of the company.” The group claimed the new proposal ignored its “finished platform and growing player base.” Real Luck believed none of Arviv’s proposals was a good reflection of the correct value represented by the company’s “significantly growing business.” The group that announced a triple-digit growth in key operational metrics in mid-September called the proposals “below the company’s net cash position.”

Considering itself undervalued, Real Luck Group, which is the parent company of pure play esports betting company that provides real-money betting, live streams, and statistics on 14 esports Luckbox, described itself as an “industry outlier.” The group also considered this position was also something prone to turn it into a “target for individuals such as Mr. Arviv.” The group further argued it had a sturdy cash position, zero debt, as well as a “robust plan” to scale in the next half a year to 10 months.

Resisting Opportunistic Conduct

Real Luck explained that its board had the duty to withstand “opportunistic conduct”, thus deciding to retain McMillan LLP as its legal counsel, along with DuMoulin Black LLP’s advisory services. Real Luck stated it would remain ready to meet with Arviv from his position as a shareholder, adding that the latter had said no to two such in-person meeting proposals.

In the meanwhile, the group has continued its growth in Latin America with a new partnership with Peruvian esports team Thunder Awaken. At the start of the month, chief executive officer Thomas Rosander also outlined positive first key performance indicators, explaining the group was entering a new strategic phase.