Company Also Announces Adoption of Non-Employee Director Stock Ownership Guidelines
NEW YORK, Aug. 27, 2020 /PRNewswire/ -- Tapinator, Inc. (OTC: TAPM) ("Tapinator," the "Company," "we," "our" or "us"), a developer and publisher of category leading games for mobile platforms, today announced that its senior leadership team has committed to purchase a minimum of $300,000 of Tapinator stock through either open market or private purchases to be made from time to time and pursuant to the terms of the Company's Insider Trading Policy between the period August 1, 2020 and July 30, 2023.
The $300,000 buying commitment has been made pursuant to contractual covenants with the Company and is shared equally between Ilya Nikolayev, Tapinator's Chairman & CEO, and Andrew Merkatz, Tapinator's President & CFO.
Messrs. Nikolayev and Merkatz offered the following joint statement: "Following the publication of our second quarter results in which we delivered the best bookings, net income, earnings per share, and adjusted EBITDA results in the Company's history, including a 27% EBITDA margin, we felt it important to publicly demonstrate to the market our strong belief that Tapinator's equity is fundamentally and deeply undervalued. We believe this ongoing cash commitment sends an important signal to our shareholders that we are fully dedicated to enhancing the Company's equity value. With this added market support, a public float of less than 400,000 shares, and an exciting new social casino game that we expect to launch in the coming months, we believe Tapinator's stock is well positioned for significant capital appreciation."
Mr. Nikolayev and Mr. Merkatz have already begun fulfilling their contractual commitment and, pursuant to the Company's Insider Trading Policy, reported between them insider purchases on four separate trading days thus far in August, totaling 4,750 shares of the Company's common stock purchased at a weighted average per share price of $4.16 for an aggregate purchase price of $18,304.
Additionally and as previously reported, Mr. Teymour Farman-Farmaian, an independent director of the Company, recently added to his position via open market purchases made pursuant to the Company's Insider Trading Policy on two separate trading days thus far in August, totaling 2,745 shares of the Company's common stock purchased at a weighted average per share price of $4.60 for an aggregate purchase price of $12,634.
After giving effect to the transactions describe above, Mr. Nikolayev, Mr. Merkatz and Mr. Farman-Farmaian directly or indirectly own 78,674, 37,250 and 8,860 shares of the Company's common stock or 14.3%, 6.8% and 1.6%, respectively, of the 551,005 shares of the Company's common stock currently outstanding.
Additionally, Tapinator is pleased to announce the Company's Board of Directors has recently adopted Stock Ownership Guidelines to better align the interests of its non-employee directors with the interests of stockholders and further promote the Company's commitment to sound corporate governance. Mr. Farman-Farmaian commented, "Tapinator has executed a remarkable business transformation over the past several years from Rapid-Launch to Category-Leading Games. The most recent quarterly numbers are evidence of this transformation. I expect to continue adding to my ownership position of Tapinator through open market purchases or purchases directly from the Company pursuant to the Company's Insider Trading Policy and according to the Stock Ownership Guidelines which we recently adopted and I am excited to participate in."
For additional information regarding the new director ownership guidelines and contractual covenants described above as well as certain other amendments to the executive employment agreements of Messrs. Nikolayev and Merkatz, including modifying the term and severance obligation of those agreements, please see the Supplemental Information Reports filed by the Company with OTC Markets on August 26, 2020 located at https://www.otcmarkets.com/stock/TAPM/disclosure.
Tapinator Inc. (OTC: TAPM) develops and publishes category leading games for mobile platforms, with a focus on social casino games. Tapinator's library includes more than 300 titles that, collectively, have achieved over 500 million mobile downloads, including notable properties such as Video Poker Classic and Solitaire Derby. Tapinator generates revenues through the sale of branded advertising and via consumer transactions, including in-app purchases and subscriptions. Founded in 2013, Tapinator is headquartered in New York, with product development and marketing teams located in North America, Europe and Asia. Consumers can find high-quality mobile entertainment wherever they see the 'T' character logo, or at http://tapinator.com.
Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "goal," "plan," "feel," "may," "will," "expect," "anticipate," "estimate," "intend," "target," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements include, among other things, our strong belief that Tapinator's equity is fundamentally and deeply undervalued, our expectation that we will launch an exciting new social game in the coming months, our belief that Tapinator's stock is well positioned for significant capital appreciation and Mr. Farman-Farmaian's expectation to continue adding to his ownership position of Tapinator through open market purchases or purchases directly from the Company. Forward-looking statements are subject to risks and uncertainties that could cause our future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Except as required by law, Tapinator undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the Company's common stock on the OTC Marketplace is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the Company's operations or business prospects. As a result, there may be volatility in the market price of the shares of the Company's common stock for reasons unrelated to operating performance. Moreover, the OTC Marketplace is not a stock exchange, and trading of securities on it is often more sporadic than trading of securities listed on a national securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company, please see the Company's Supplemental Information Report filed with the OTC Markets located at: https://backend.otcmarkets.com/otcapi/company/financial-report/241817/content.
Tapinator Management Makes $300,000 Insider Buying Commitment