LegaltinyBuild
AIM Admission Document March 2021
1 Mar 2021159 pages~492 min full read
tinyBuild debuted on the London Stock Exchange’s AIM market in March 2021 with a market capitalization of £340.6 million, raising £28.6 million in net proceeds to fund acquisitions and a 23-title development pipeline.
The company demonstrated significant financial growth between 2017 and 2019, with annual revenues increasing from $11.9 million to $28.0 million.
Revenue is highly concentrated, with the top five titles accounting for 70% of H1 2020 revenue and the back catalogue contributing nearly 80% of total 2019 revenue.
The business model relies on an 'acquihire' strategy to integrate development partners and utilizes a global footprint to access cost-effective talent, while maintaining a strong liquidity position of $21.3 million in cash as of mid-2020.
Founders Alex Nichiporchik and Luke Burtis retain a 45.3% stake in the company, which operates under a complex regulatory framework requiring U.S. Regulation S, Category 3 restrictions on share sales.
The company faces operational risks due to a heavy dependency on seven third-party distribution platforms for its product delivery.
This document outlines the March 2021 admission of tinyBuild, Inc., a Delaware-incorporated video game publisher and developer, to the London Stock Exchange’s AIM market. Trading under the symbol TBLD, the company executed a placing of approximately 91.3 million shares at 169 pence each, resulting in a post-admission market capitalization of £340.6 million. The offering raised net proceeds of £28.6 million intended to fund a strategic shift toward an "own-IP" model, including mergers, acquisitions, and the expansion of a 23-title development pipeline.
The company’s financial trajectory is characterized by rapid growth, with revenues increasing from $11.9 million in 2017 to $28.0 million in 2019. This performance was largely driven by the success of the *Hello Neighbor* franchise and a robust back catalogue that accounted for nearly 80% of 2019 revenue. Strategically, the firm utilizes an "acquihire" model to integrate long-term development partners and leverages a global footprint to access cost-effective talent in emerging markets. Despite this growth, the company acknowledges significant risks, including a high dependency on seven third-party distribution platforms and a concentrated revenue stream where the top five titles generated 70% of H1 2020 revenue.
Operating as a U.S. entity on a UK exchange, the company maintains a complex regulatory and governance framework. Shares are classified as "restricted securities" under U.S. Regulation S, Category 3, prohibiting sales to U.S. persons for a one-year period and requiring settlement via Depositary Interests in the CREST system. Governance is managed by a five-member board adhering to the QCA Corporate Governance Code, with founders Alex Nichiporchik and Luke Burtis retaining a 45.3% stake. Financial reporting transitioned from US GAAP to IFRS, revealing a 2019 adjusted EBITDA of $7.7 million and a strong liquidity position of $21.3 million in cash as of mid-2020.
