180 Life Sciences Doubles Down on iGaming with $2.9M Fundraising Effort

California-based biotechnology company 180 Life Sciences Corp. has set its sights on a new frontier: the online gaming and gambling industry. Backed by a $2.9 million direct stock offering, the company is pivoting from its biotech roots to enter the rapidly growing iGaming market.

The foundation of 180 Life Sciences’ transformation lies in its acquisition of proprietary technology from Elray Resources, a developer of cryptocurrency-based iGaming solutions. This move equips the company with blockchain-powered infrastructure for a planned online casino.

In exchange for its technology stack, Elray received preferred stock convertible into a 40% equity stake in 180 Life Sciences, along with warrants to purchase 3 million shares of common stock, pending shareholder approval. The blockchain integration aligns with broader industry trends, offering a streamlined, secure, and tech-forward approach to online gambling.

Interim CEO Blair Jordan highlighted the potential of blockchain technology to establish a competitive edge in the iGaming sector, signaling the company’s commitment to innovation in its new venture.

The pivot further comes as 180 Life Sciences undergoes leadership changes designed to support its strategic shift. Gaming industry veteran Stephen Shoemaker recently joined the board of directors, bringing extensive experience in scaling high-growth ventures.

Fundraising to Fuel the Transition

To fund this transformation, the company announced a direct stock offering detailed in a December 30 filing with the US Securities and Exchange Commission (SEC). It plans to sell 1.2 million shares of common stock at $2.41 per share, with unregistered warrants for an additional 1.2 million shares. The total proceeds are expected to reach nearly $2.9 million.

This funding will bolster 180 Life Sciences’ efforts to establish itself as a competitive player in the iGaming industry, supporting the rollout of its blockchain-enabled casino platform.

Challenges in Biotechnology

The company’s new venture comes amidst significant hurdles in its original biotechnology focus. Founded in 2016, 180 Life Sciences initially aimed to develop treatments for inflammatory diseases, including its flagship drug candidate, adalimumab, for Dupuytren’s disease.

Despite early promise, clinical trials failed to demonstrate the drug’s efficacy, prompting regulatory pushback from both the US Food and Drug Administration (FDA) and the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA) in 2022.

The setbacks led to a steep decline in the company’s stock price, which fell below $1 per share, necessitating a reverse stock split to meet Nasdaq listing requirements. These challenges ultimately spurred the decision to explore new opportunities in the iGaming sector.

By shifting focus to the burgeoning iGaming market, 180 Life Sciences aims to leave its biotech struggles behind and capitalize on a high-growth industry. The company’s blockchain-powered approach, combined with leadership expertise and fresh funding, provides a solid foundation for its ambitious move. While it carries risks, it reflects the company’s resolve to reinvent itself in a competitive and dynamic market.