Proactive Investors - Shares of tinyBuild Inc (LON:TBLD), the video games publisher and developer behind 'Hello Neighbor', have fallen 25% as it sounded the alarm over revenues and cash and it said it may raise fresh investment.
In an update, the company reported that its current trading is below expectations for the fourth quarter, primarily due to weak performance in October. As a result, FY23 revenues are now projected to be between US$40-50 million, which is lower than initially anticipated.
A key factor contributing to the downturn is the underperformance of Versus Evil, a subsidiary of tinyBuild, which has faced delays in the release of three out of its four scheduled games into 2024.
Additionally, tinyBuild's cash position as of the end of November was US$5.7 million, with no debt. However, this figure is expected to fall short of the previously forecast US$10-20 million by the end of December 2023.
To strengthen the balance sheet, CEO and founder Alex Nichiporchik said he is willing to underwrite a future equity fundraise of up to US$10 million, subject to shareholder approval.
At 9.02 am, the stock was down 1.51p at 4.62p.