Updated Mar 17, 2026 by tinyBuild
TinyBuild faces a critical liquidity crisis and potential Chapter 11 insolvency if it fails to secure $14.16 million (£10.3 million) in new capital by January 2024.
The fundraising strategy includes a share issuance priced at 5 pence, a $2 million private placement from Atari, and an open offer for existing stockholders.
CEO Alex Nichiporchik is underwriting up to $10 million of the raise, a move that could increase his ownership stake from 37.8% to 59.1% and requires a regulatory 'whitewash' waiver.
The proposed transaction will result in approximately 109% dilution for existing stockholders.
The company's financial distress is attributed to game delays at its Versus Evil subsidiary, a $3.5 million litigation settlement, and significant cost-reduction charges.
A Special Meeting is scheduled for January 18, 2024, to approve the resolutions, with new share dealings expected to commence on January 19, 2024.
TinyBuild faces a critical liquidity crisis and potential Chapter 11 insolvency if it fails to secure $14.16 million (£10.3 million) in new capital by January 2024.
The fundraising strategy includes a share issuance priced at 5 pence, a $2 million private placement from Atari, and an open offer for existing stockholders.
CEO Alex Nichiporchik is underwriting up to $10 million of the raise, a move that could increase his ownership stake from 37.8% to 59.1% and requires a regulatory 'whitewash' waiver.
The proposed transaction will result in approximately 109% dilution for existing stockholders.
The company's financial distress is attributed to game delays at its Versus Evil subsidiary, a $3.5 million litigation settlement, and significant cost-reduction charges.
A Special Meeting is scheduled for January 18, 2024, to approve the resolutions, with new share dealings expected to commence on January 19, 2024.