Investing carries serious risks, including partial or total loss of capital. Please read the Key Investment Information Sheet and the Risk factors and login before investing.
Pacaya 1A
Type 1 – Project risk
1. Risk associated with the team’s knowledge and the correctness of forecasts
Risk: There is a risk that LUCKY WAY GAME will overestimate the market. Indeed, as an emerging platform offering transformative live
experiences, there is a risk linked to market fluctuations and user adoption.
Consequence: If this risk materializes, it can lead to a lower valuation in the event of a possible exit because the business plan could not be
executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and
bankruptcy of the company, with partial or complete loss of the invested capital.
Note: As an innovative initiative in the digital entertainment sector, the company is fully aware of the challenges and risks inherent in their
industry. However, they approach these challenges with a mixture of enthusiasm, strategic planning and solid support. LUCKY WAY GAME is
ready to navigate the dynamic market landscape. Their team of seasoned professionals is committed to adjusting its content and marketing strategy
to align with changing user preferences and market trends.
2. The risk associated with the need for new financing
Risk: Given the stage of development that the company is in, it is likely that there will be a need for new financing.
Consequence: On the one hand, there is the risk that the company will not find investors, which would lead to the dissolution or bankruptcy of
the company, causing the investor to lose part or all of his investment. On the other hand, there is the possibility that the company will find new
investors, which will lead to dilution, which will be even greater if there is a lower valuation than the one currently used.
Note: Investors will have the opportunity to co-invest in new rounds, at the then current investment conditions.
Type 2 – Sector risk
1. The risk associated with a data breach
Risk: As a pioneering digital content platform, LUCKY WAY GAME recognizes the crucial importance of protecting their users' personal
information. There is an inherent risk to data security and privacy, which could be compromised despite rigorous security protocols. Data
breaches could undermine user confidence and, by extension, reputation in the marketplace.
Consequence: The consequences of such a breach could lead to a loss of user trust, legal liabilities and financial penalties, all of which could
damage LUCKY WAY GAME’s reputation in the market and its financial stability. This could lead to a lower valuation in the event of a possible
exit. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the
company, with partial or complete loss of the invested capital.
Note: To mitigate the risk associated with data security and privacy, LUCKY WAY GAME is implementing a comprehensive data protection
strategy. This includes:
1. Advanced Security Measures: Deploying state-of-the-art encryption, firewalls, and anti- malware systems to protect against unauthorized
access and threats.
2. Regular Security Audits: Conducting periodic reviews and updates of the security infrastructure to ensure it meets the latest standards and
can combat emerging threats.
3. Data Privacy Training: Providing regular training for staff to ensure they are aware of the best practices in data handling and understand
the importance of maintaining data confidentiality.
4. Incident Response Plan: Establishing a robust incident response protocol to swiftly address and mitigate the impact of any data breach,
should one occur.
5. Compliance with Regulations: Ensuring policies and procedures are in full compliance with relevant data protection laws and regulations,
such as GDPR, to maintain high standards of data privacy.
Type 3 - Risk of insolvency and bankruptcy of the project owner
Risk: The risk of insolvency means that the company does not have sufficient funds to meet its payment deadlines (cessation of payments).
Consequence: If the company does not find alternative financing (shocked credit), it may go bankrupt. The insolvency or bankruptcy of LUCKY
WAY GAME may lead to lower or non-existent returns and in the worst case to a partial or total loss of the invested capital.
Note: The diversified business model, which includes partnerships with established brands, international celebrities and a strong commitment to
high-quality user experiences, uniquely positions LUCKY WAY GAME to mitigate risk. In addition, the company's commitment to continuous
innovation and analysis of user feedback enables it to be agile and responsive to market challenges.
Type 4 - Risk of lower, delayed or no returns.
1. Risk associated with the lack of guarantees.
Risk: Neither the shares of LUCKY WAY GAME nor the Participatory Notes of the PACAYA 1A compartment of Spreds Finance provide
guarantees of a return or repayment of the invested capital.
2. Risk associated with the lack of a fixed return.
Risk: Participatory Notes do not offer a fixed return. The return of the Participatory Notes depends solely on the performance of the Underlying
Asset, namely the shares of LUCKY WAY GAME.
Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or nonexistent returns and, in the worst case, partial or complete loss of the invested capital.
Note for both risks: Investors in Participatory Notes bear the same economic risk as if they were investing directly as shareholders of LUCKY
WAY GAME.
Type 5 - Risk of failure of the financing vehicle
Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this
compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions
of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a
subsidiary risk of insolvency of Spreds Finance.
Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment.
Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the
compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner
is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept
by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and
(iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and
notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee
the rights of investors with respect to this compartment.
Type 6 - Risk of illiquidity of the investment
1. Risk associated with the absence of an organized exchange market for Participatory Notes
Risk: Neither the project owner nor Spreds Finance organizes an exchange market for Participatory Notes. It is thus up to the investor himself to
find a buyer for his Participating Notes. Given the absence of an exchange market for Participatory Notes, there is no way to adequately establish
a comparative pricing methodology for Participatory Notes.
Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it
wishes to sell).
Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Underlying
Company itself (see Appendix B, (d)).
2. Risk associated with the vote by the general meeting of holders of Participatory Notes to sell
Risk: Any decision by Spreds Finance to sell shares of LUCKY WAY GAME is subject to the approval of the holders of Participatory Notes
representing at least 75% of the outstanding Participatory Notes, unless Spreds Finance is required to sell them under a contractual or statutory
provision.
Consequence: Investors thus bear the risk that the general meeting of the holders of Participatory Notes may refuse to approve the sale of the
participation, in which case all investors are bound by this decision and thus must wait to obtain redemption of the Participatory Notes.
3. Risk associated with an investment in a young company
Risk: Investing in shares of young companies entails the risk that a buyer for the shares will not be found, or not at a fair price yielding a market
return, or that a buyer will not be found within a reasonable period of time.
Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.
Note: Spreds Finance will make every effort within its powers to obtain the best possible price.
Type 7 – Other risks
Risk: Spreds Finance has not conducted an analysis of the proposed project or of the financial situation of the Underlying Company.
Consequence: Any investor considering subscribing to Participatory Notes should make its own analysis of LUCKY WAY GAME's solvency,
activity, financial situation and prospects.
Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential
investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to
invest based on the information made available to them, after making their own analyses.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.
Risk: There is a risk that LUCKY WAY GAME will overestimate the market. Indeed, as an emerging platform offering transformative live
experiences, there is a risk linked to market fluctuations and user adoption.
Consequence: If this risk materializes, it can lead to a lower valuation in the event of a possible exit because the business plan could not be
executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and
bankruptcy of the company, with partial or complete loss of the invested capital.
Note: As an innovative initiative in the digital entertainment sector, the company is fully aware of the challenges and risks inherent in their
industry. However, they approach these challenges with a mixture of enthusiasm, strategic planning and solid support. LUCKY WAY GAME is
ready to navigate the dynamic market landscape. Their team of seasoned professionals is committed to adjusting its content and marketing strategy
to align with changing user preferences and market trends.
2. The risk associated with the need for new financing
Risk: Given the stage of development that the company is in, it is likely that there will be a need for new financing.
Consequence: On the one hand, there is the risk that the company will not find investors, which would lead to the dissolution or bankruptcy of
the company, causing the investor to lose part or all of his investment. On the other hand, there is the possibility that the company will find new
investors, which will lead to dilution, which will be even greater if there is a lower valuation than the one currently used.
Note: Investors will have the opportunity to co-invest in new rounds, at the then current investment conditions.
Type 2 – Sector risk
1. The risk associated with a data breach
Risk: As a pioneering digital content platform, LUCKY WAY GAME recognizes the crucial importance of protecting their users' personal
information. There is an inherent risk to data security and privacy, which could be compromised despite rigorous security protocols. Data
breaches could undermine user confidence and, by extension, reputation in the marketplace.
Consequence: The consequences of such a breach could lead to a loss of user trust, legal liabilities and financial penalties, all of which could
damage LUCKY WAY GAME’s reputation in the market and its financial stability. This could lead to a lower valuation in the event of a possible
exit. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the
company, with partial or complete loss of the invested capital.
Note: To mitigate the risk associated with data security and privacy, LUCKY WAY GAME is implementing a comprehensive data protection
strategy. This includes:
1. Advanced Security Measures: Deploying state-of-the-art encryption, firewalls, and anti- malware systems to protect against unauthorized
access and threats.
2. Regular Security Audits: Conducting periodic reviews and updates of the security infrastructure to ensure it meets the latest standards and
can combat emerging threats.
3. Data Privacy Training: Providing regular training for staff to ensure they are aware of the best practices in data handling and understand
the importance of maintaining data confidentiality.
4. Incident Response Plan: Establishing a robust incident response protocol to swiftly address and mitigate the impact of any data breach,
should one occur.
5. Compliance with Regulations: Ensuring policies and procedures are in full compliance with relevant data protection laws and regulations,
such as GDPR, to maintain high standards of data privacy.
Type 3 - Risk of insolvency and bankruptcy of the project owner
Risk: The risk of insolvency means that the company does not have sufficient funds to meet its payment deadlines (cessation of payments).
Consequence: If the company does not find alternative financing (shocked credit), it may go bankrupt. The insolvency or bankruptcy of LUCKY
WAY GAME may lead to lower or non-existent returns and in the worst case to a partial or total loss of the invested capital.
Note: The diversified business model, which includes partnerships with established brands, international celebrities and a strong commitment to
high-quality user experiences, uniquely positions LUCKY WAY GAME to mitigate risk. In addition, the company's commitment to continuous
innovation and analysis of user feedback enables it to be agile and responsive to market challenges.
Type 4 - Risk of lower, delayed or no returns.
1. Risk associated with the lack of guarantees.
Risk: Neither the shares of LUCKY WAY GAME nor the Participatory Notes of the PACAYA 1A compartment of Spreds Finance provide
guarantees of a return or repayment of the invested capital.
2. Risk associated with the lack of a fixed return.
Risk: Participatory Notes do not offer a fixed return. The return of the Participatory Notes depends solely on the performance of the Underlying
Asset, namely the shares of LUCKY WAY GAME.
Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or nonexistent returns and, in the worst case, partial or complete loss of the invested capital.
Note for both risks: Investors in Participatory Notes bear the same economic risk as if they were investing directly as shareholders of LUCKY
WAY GAME.
Type 5 - Risk of failure of the financing vehicle
Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this
compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions
of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a
subsidiary risk of insolvency of Spreds Finance.
Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment.
Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the
compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner
is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept
by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and
(iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and
notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee
the rights of investors with respect to this compartment.
Type 6 - Risk of illiquidity of the investment
1. Risk associated with the absence of an organized exchange market for Participatory Notes
Risk: Neither the project owner nor Spreds Finance organizes an exchange market for Participatory Notes. It is thus up to the investor himself to
find a buyer for his Participating Notes. Given the absence of an exchange market for Participatory Notes, there is no way to adequately establish
a comparative pricing methodology for Participatory Notes.
Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it
wishes to sell).
Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Underlying
Company itself (see Appendix B, (d)).
2. Risk associated with the vote by the general meeting of holders of Participatory Notes to sell
Risk: Any decision by Spreds Finance to sell shares of LUCKY WAY GAME is subject to the approval of the holders of Participatory Notes
representing at least 75% of the outstanding Participatory Notes, unless Spreds Finance is required to sell them under a contractual or statutory
provision.
Consequence: Investors thus bear the risk that the general meeting of the holders of Participatory Notes may refuse to approve the sale of the
participation, in which case all investors are bound by this decision and thus must wait to obtain redemption of the Participatory Notes.
3. Risk associated with an investment in a young company
Risk: Investing in shares of young companies entails the risk that a buyer for the shares will not be found, or not at a fair price yielding a market
return, or that a buyer will not be found within a reasonable period of time.
Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.
Note: Spreds Finance will make every effort within its powers to obtain the best possible price.
Type 7 – Other risks
Risk: Spreds Finance has not conducted an analysis of the proposed project or of the financial situation of the Underlying Company.
Consequence: Any investor considering subscribing to Participatory Notes should make its own analysis of LUCKY WAY GAME's solvency,
activity, financial situation and prospects.
Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential
investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to
invest based on the information made available to them, after making their own analyses.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.
Fact sheet
| Advised by a professional start-up advisor | |
| Valuation is set by the co-investor or incubator | |
| Co-investor or incubator will be members or observers to the board | |
| At the closing, an incubator, accelerator, or studio will have shares | |
| At the closing, the entrepreneurs have contributed a minimum of €15,000 in cash in exchange for shares | |
| Emits less than 3.7 t of CO2 per year, per employee | |
| At the closing, a professional co-investor will have invested at least €25,000 | |
| Prior fundraising in equity or convertible loan with 10 or more investors | |
| Seasoned entrepreneurs | |
| Considered “compliant” on the assessment tool of Tapio | |
| Minimum 2 active entrepreneurs | |
| Valuation set by an organisation specialized in valuations of comparable size | |
| Valuation is less than €1 million or 10x last year’s turnover |
Raise summary
| Crowd investments | €11,000 |
| Committed by others | €500,000 |
| Amount raised | €511,000 |
| Minimum round | €525,000 |
| Maximum round | €1,150,000 |
| Shares in the company (total round) | 43.396% |
| Pre-money valuation | €1,500,000 |
| Post-money valuation min. | €2,025,000 |
| Post-money valuation max. | €2,650,000 |