tinyBuild Inc on Friday said shareholders should vote in favour for its $12.0 million fundraising to proceed and have until next Tuesday to do so.
Shares in tinyBuild fell 7.5% to 4.63 pence each in London on Friday afternoon.
On December 22, the Washington, US-based indie video game developer and publisher said it had raised $12.0 million from a placing and subscription of new shares at 5 pence each, adding that it expected to raise $2.2 million for from an open offer to existing shareholders.
The equity raise was underwritten by tinyBuild Chief Executive Officer Alex Nichiporchik, whose stake may rise to as high as 59% from the current 38%, depending on take-up of the open offer, which will be on the basis of one new share for every six already held.
Also, taking part in the equity raise is French videogame firm Atari SA, which bought $2.0 million worth of new shares.
If all the resolutions are not passed at next week’s special meeting, tinyBuild said the fundraise will not take place and the proceeds of the fundraise will not be received by the company.
‘Failure to conclude the fundraise will materially compromise the group’s ability to meet its financial obligations as they fall due and, in the opinion of the board, likely result in the group entering into a chapter 11 bankruptcy or some other form of insolvency procedure,’ tinyBuild warned.
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