Tapinator repurchases, cancels series B convertible preferred stock

By Sarah Lizee

Olympia, Wash., Sept. 10 – Tapinator, Inc. announced the repurchase of all 1,354 shares of its series B convertible preferred stock for a per share purchase price of $270.83, or a total purchase price of $366,708.32.

The repurchased shares were convertible into 11,283,333 shares of the company's common stock, representing about 12% of its current common shares outstanding, according to a press release.

The repurchase purchase price represents a per share common stock purchase price of $0.0325, if conversion had occurred.

“Earlier this year we eliminated the company's debt in its entirety and we are pleased to follow up that transaction by now eliminating all of our preferred stock, resulting in a completely clean capital structure and the elimination of significant potential common stock dilution,” Andrew Merkatz, president of Tapinator, said in the release.

“This transaction was opportunistic in that we were able to purchase this stock at a value below market and at a level that we believe to be well below fair value for the company when comparing the company's enterprise value (EV), historical revenues and adjusted EBITDA (a non-GAAP measure) to those of comparable publicly traded mobile gaming companies.”

The developer and publisher of mobile games is based in New York.

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