TORONTO, Aug. 29, 2018 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX-V: KUU), a technology
company focused on acquiring, developing and distributing mobile game applications, provides corporate update:
Changes to Board of Directors:
Kuuhubb is pleased to announce the appointment of Mr. Carl-Gustaf von Troil to its Board of Directors. Mr. von Troil is a
seasoned investor with extensive executive experience in a multitude of industries, including banking, manufacturing and real
estate. He currently sits on the Board of Directors of United Bankers, a publicly listed wealth management company based in
Helsinki, Finland.
“We are pleased to welcome Mr. von Troil to our board of directors,” said Jouni Keranen, Kuuhubb’s CEO. “His
significant banking and investing experience as well as finance, strategy and leadership skills will be invaluable as we grow our
global business initiatives.”
Mr. von Troil will replace Mr. Maurice Colson who is stepping down as a director of the Company upon closing of
the announced financing (see below). The Board thanks Mr. Colson for his contributions during his tenure with the Company and
we wish him the best in his future endeavours.
€2,000,000 Convertible Debenture Financing:
Kuuhubb also announces a proposed private placement financing for gross proceeds of EUR2,000,000 through the issuance by the
Company of an unsecured convertible debenture (the “Debenture”) in the principal amount of EUR2,000,000. “We have a good
relationship with the proposed investor and expect to close this financing within the next two weeks,” said Christian Kolster,
Kuuhubb’s Executive Vice President. Kuuhubb plans to use the proceeds from the financing (the “Proposed Financing”) for new
product launches, business development and general corporate purposes.
The Debenture will (a) have an interest rate of 5.5% per annum (with the interest payable every six months), (b)
mature on the date which is three years from closing date of the Proposed Financing, and (c) be convertible at the option of the
holder into common shares of Kuuhubb at a conversion price of Cdn$1.10 per share.
As well, Kuuhubb would have the option to convert the Debenture into common shares of the Company after the two
year anniversary of the issuance of the Debenture if the market price of such shares exceeds Cdn$1.10 per share. Kuuhubb
would also have the option to redeem the Debenture after the two year anniversary of the issuance of the Debenture.
Closing of the Proposed Financing is subject to the execution of the definitive documentation and receipt of all
necessary approvals, including TSX Venture Exchange approval. The final terms of the Debenture may be varied from the
foregoing as may be approved by the TSX Venture Exchange. The Debenture will be subject to a four month hold period following
issuance and will not be listed for trading on any exchange.
Update on recent financial performance and corporate activities:
The Company plans to publish its consolidated financial statements and related management’s discussion and analysis for the
financial year ended June 30, 2018 on or before October 29, 2018. The Company’s financial year end is June 30.
Financial Highlights for the Three Month Period Ended June 30, 2018:
- Revenue (unaudited): US$5.5 million during the three months ended June 30, 2018. This revenue was generated primarily
from sales of the Recolor app, the in-application sale of virtual goods from the My Hospital game and in-application ad
revenue. Recolor experienced a one-time technical issue in a distributor’s platform which negatively impacted revenue and
profitability during the quarter ended June 30, 2018.
- In May 2018, the Company soft launched Incolour, its first India-specific mobile app. Incolour is a standalone
colouring app that utilizes the best functionalities of Recolor’s app in an entirely new interface, providing its community
access to daily themed features designed to promote user engagement and a family-friendly platform ideally suited to both global
and local brand partnership campaigns. The Company’s Incolour marketing strategy is centred around creating partnerships
with significant social media influencers and Bollywood stars.
About Kuuhubb
Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile game applications for the female
audience. 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 the completion of the Proposed Financing, future revenue and products 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, failure to execute the
definitive documentation in respect of, or complete, the Proposed Financing, the need to satisfy regulatory and
legal requirements and other conditions precedent with respect to the Proposed Financing (including the need to obtain TSX Venture
Exchange approval of the Proposed Financing), the possibility that the completion of the Proposed Financing may be delayed or that
the terms of the Proposed Financing may change, risks related to the growth strategy of the Company, the possibility that results
from the Company’s growth and development 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
