TORONTO, April 10, 2018 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the
“Company”) (TSX-V:KUU), a technology company focused on acquiring, developing and distributing mobile game
applications, is pleased to provide an update on recent financial performance. References below to “US$” are to United States
dollars. The Company’s consolidated financial statements (and related management’s discussion and analysis) for the quarter
ended March 31, 2018 are planned to be published on or before May 30, 2018. The Company’s financial year end is June 30.
Financial Highlights for the Three Month Period Ended March 31, 2018:
- Revenue: Increased to US$6.6 million during the three months ended March 31, 2018, an increase from the previous quarter
ended December 31, 2017 (which was US$6.35 million). This revenue was generated from existing and new user sales of the
Recolor app, the in-application purchases of virtual goods from the My Hospital game, along with in-application advertising
revenue.
- Advertising Revenue Contribution: The three months ending March 31, 2018 was the first full quarter where the Company’s
newly introduced advertising monetization model was fully implemented and showing immediate revenue contribution.
- Brand and IP Owner Partnerships: Continue to play an essential role in Kuuhubb's growth strategy. Highly customized
campaigns with Kellogg’s and Lionsgate have proven to be very successful with high user engagement. For the three months
ended March 31, 2018, the Company signed additional contracts with new globally recognized brands and IP owners, and expects to
see a significant increase in revenue from this stream in the coming quarters.
- Nearing Cash Flow Break-Even: During the quarter ended March 31, 2018 the Company operated at or near cash flow
break-even. In addition, Kuuhubb also repaid, as scheduled, a significant amount of debt (equivalent to about US$650,000)
during the period ending March 31, 2018 strengthening the Company’s balance sheet.
- Improved Financial Position: The Company is pleased to announce it has improved its financial position in order implement and
accelerate its Asian project and product road map. The Company secured during the quarter ended March 31, 2018 US$1.6
million in additional funds, which included a pre-payment from advertising platform partners and bank loan. With this
additional cash, the Company has the necessary funds to adequately execute on its numerous global growth initiatives.
Jouni Keränen, CEO of Kuuhubb, stated: “I am proud of the Kuuhubb team for delivering another solid quarter
achieving both quarter-on-quarter revenue growth and month-on-month cash flow break-even. With the additional, non-dilutive
cash injection, the Company is well positioned to execute the growth drivers of Japan, India and Android launches, as well as
expanding the product portfolio.”
About Kuuhubb
Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile game applications. Its strategy
is to create sustainable shareholder value through acquisitions of proven, yet underappreciated, assets with robust long-term
growth potential. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on developing U.S.
brand collaborations and Asian partnerships.
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including,
without limitation, statements relating to future and increased revenue and development and growth of the Company’s business) are
forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on
information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that
may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even
if such actual results are realized or substantially realized, there can be no assurance that they will have the expected
consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current
expectations include, among other things, risks related to the growth strategy of the Company, the possibility that results from
the Company’s growth plans will not be consistent with the Company's expectations, the early stage of the Company's development,
competition from companies in a number of industries, the ability of the Company to manage expansion and integrate acquisitions
into its business, future business development of the Company and the other risks disclosed under the heading "Risk Factors" in the
Company's annual information form dated October 30, 2017 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is provided
and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking information are reasonable, forward- looking information is not a
guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent
uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Kuuhubb Inc.
Jouni Keränen - CEO
jouni@kuuhubb.com
Office: +358 40 590 0919
Bill Mitoulas
Investor Relations
bill@kuuhubb.com
Office: +1 (416) 479-9547
