- Games company knocked by legal settlement and weaker sales
- Shareholders facing wipeout
Games developer TinyBuild (TBLD) looked to have bought another life at the end of last year, but an emergency cash injection has come at the expense of private shareholders. The share price has now fallen 97 per cent from its 2021 IPO price of 169p. The company has found itself in dire straits after a costly acquisition and strategy shift that failed to pay off.
Last month, the company announced a $12mn (£9.5mn) equity raise, including $2mn from Atari and a minimum of $10mn from chief executive Alex Nichiporchik. This will effectively wipe out remaining retail investors. Nichiporchik, the TinyBuild founder, took almost £56mn out of the IPO in 2021, so his underwriting of both the placing and $2mn retail issue could be seen as a partial reinjection of cash.