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.

15 September 2021

tinyBuild, Inc

("tinyBuild" or the "Company")

Acquihire of Bad Pixel (Deadside)

tinyBuild, a leading video games publisher and developer with global operations, is pleased to announce the acquihire of Bad Pixel, the development studio behind the very popular open-world game Deadside. Bad Pixel is based in Russia with seven developers currently.

Deadside is a hardcore multiplayer shooter with vast gaming possibilities, balancing the dynamics of a first-person shooter with survival elements. The post-apocalyptic world of Deadside realistically pictures vast spaces full of bushy forests, sparkling water streams and abandoned settlements in the ruins of a dead civilisation. The game launched in early access with an area of 25 km², which will grow to ​​about 225 km² for the full release.

The initial consideration for Bad Pixel by tinyBuild will be $6.5 million, including $4.9 million in cash and $1.6 million in newly issued tinyBuild shares. Deferred payments over the following three calendar years will be settled with newly issued tinyBuild shares up to $10.6 million, subject to certain financial targets being met. The total maximum consideration is up to $17.1 million.

The core of tinyBuild's strategy is to expand its range of games, adding promising IP with the potential to create new franchises. By bringing the talented developers of Bad Pixel and the Deadside IP in-house, tinyBuild expects to create value for shareholders in the long term. Bad Pixel generated c.$3.0 million of EBITDA^[1] in 2020, following the early access release of Deadside. tinyBuild expects that the deal will be marginally accretive in 2021, a year of investments, with greater potential for return in the following years.

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 Bad Pixel, our fourth acquihire this year, as we continue to scale up our ambitions. We have known the Bad Pixel team for over two years, and we are extremely excited to be working with them.

"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."

Admission and Total Voting Rights

As part of the initial consideration on signing, the Company will issue 471,004 New Common Shares of $0.001 each in the Company ("New Common Shares"), at a price of 250p per New Common Share, and such shares will be subject to a 12-month lock-up period.

Application will shortly be made to the London Stock Exchange for the admission of the New Common Shares to trading on AIM ("Admission") which is expected to take place on or around 21 September 2021. Following Admission, the total number of Common Shares and voting rights in the Company will be 202,507,081. The Company does not hold any shares in treasury.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

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.