NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, TO OR FOR THE ACCOUNT OR BENEFIT OF US PERSONS, AS DEFINED IN REGULATION S PROMULGATED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "US SECURITIES ACT"), OR IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

23 November 2021

tinyBuild, Inc

("tinyBuild" or the "Company")

Acquisition of Versus Evil and Red Cerberus

tinyBuild, a leading video games publisher and developer with global operations, is pleased to announce the acquisition of US-based Versus Evil, the video game publisher of critically acclaimed titles such as The Banner Saga, and its subsidiary Red Cerberus, its games service provider located in Sao Paolo, Brazil.

Versus Evil will continue to operate as an independent label expanding tinyBuild's publishing capacity and contributing to its IP discovery process in new genres such as RPG and strategy. Founded in 2013 by Steve Escalante, who will continue to run the operations, Versus Evil has published 32 titles on all major platforms, which will bring tinyBuild's portfolio to over 70 titles. Since 2017, Red Cerberus has been providing Versus Evil and third-party studios with quality assurance, testing and localization.

The initial consideration for acquiring Versus Evil and Red Cerberus will be $12.5 million in cash. Deferred payments over the following three calendar years will be settled with newly issued tinyBuild shares of up to $18.8 million^[1], subject to stretching financial targets being met. The total maximum consideration is up to $31.3 million.

Versus Evil and Red Cerberus together generated $12 million in revenues and a $0.2 million EBITDA loss in 2020^[2], a year of heavy investment in Red Cerberus. tinyBuild expects that the deal will be marginally accretive in 2021, and approximately 10% accretive at EBITDA level in 2022, with greater potential for return in the following years. In addition, Versus Evil and Red Cerberus will add over 250 staff^[3] to the Company, bringing the total number to over 400.

A conference call for analysts, hosted by tinyBuild Alex Nichiporchik (CEO and co-founder), Tony Assenza (CFO) and Jaz Salati (Head of M&A and IR), will take place at 8.15am (GMT) today. Please email [email protected] for details.

Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:

"As a public company, we have a powerful platform from which we can deliver on our organic and M&A growth ambitions. We are delighted to announce the acquisition of Versus Evil, a highly-regarded global video games publisher, as we continue to scale up our ambitions. Red Cerberus also gives us the opportunity to expand our access to talent in South America.

"Our goal is to expand our position as a leading global developer and publisher, focusing on IP ownership while creating long-term scalable franchises across multiple media formats. In addition, we are actively looking at a number of other potential acquihires and larger scale acquisitions to enhance our strategic and operational position. We remain excited and confident about delivering on our strategy for this year and beyond."

Enquiries:

About tinyBuild:

Founded in 2013, tinyBuild (AIM: TBLD) is a leading premium AA-rated and indie video games publisher and developer. tinyBuild strategically secures access to IP and partners with developers to establish a stable platform on which to build multi-game and multimedia franchises. tinyBuild has a strong portfolio of over 40 titles, and its upcoming pipeline includes over 20 new titles currently in development.

Headquartered in Seattle, Washington, USA, the Company has key operations worldwide, with employees, contractors or partners in multiple locations across five continents. tinyBuild's geographic diversity enables it to source high-potential IP, cost-effective development resources and a loyal customer base through innovative grassroots marketing.

tinyBuild was admitted to AIM, a market by the London Stock Exchange in March 2021.

For further information, visit: www.tinybuildinvestors.com.