TORONTO, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the “Company”)(TSXV: KUU), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, has provided the following corporate update to shareholders:
Closing of Non-Convertible Debenture Financing
Kuuhubb has closed the previously announced non-convertible debenture financing (the “Offering”) for aggregate gross proceeds of US$1,300,000 on a non-brokered basis. The Offering is composed of secured debentures (“Debenture”), each of which has a face value of US$29,500, a Maturity Date twenty-four months from the date of closing, and bears interest at a rate of 12% per annum.
Subscribers to the Offering received a bonus of 50,000 common share (“Share”) purchase warrants (“Warrants”) of the Company per Debenture for an aggregate total of 2,200,000 Warrants. Each Warrant shall entitle the holder to purchase one Share (“Warrant Share”) for a period of twenty-four months after closing at a price of C$0.10 per Warrant Share. In addition if (i) the Debenture is redeemed or retracted in accordance with the terms therein; or (ii) the trading price of the Shares on the TSX Venture Exchange (“TSXV”) closes at a minimum of C$0.30 per Share for a period of ten (10) consecutive trading days, the Company may, upon the written consent of the holder of the Warrant, accelerate the expiry date of the Warrants to the date which is (a) thirty (30) days following the date upon which notice of the accelerated expiry date is provided to the holders of the Warrants, or (b) such other date as may be mutually agreed upon between the Company and the holders of the Warrants.
The Debentures, the Warrants, and Warrant Shares, if issued, will be subject to a four-month and one day statutory hold period, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada. The Company intends to use the proceeds from the Offering for business development and general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including final approval of the TSX Venture Exchange and applicable securities regulatory authorities. Full details of the Offering are available in the Company’s news release dated September 23, 2020 and filed under Kuuhubb’s profile at www.sedar.com.
Q4 2020 Preliminary Financial Results
Kuuhubb is reporting certain preliminary results for its fiscal Q4 2020 and Fiscal 2020.
Fiscal Q4 2020 revenue is expected to be approximately US$1.75 – 1.80 million, compared to US$2.43 million in Q4 2019, and US$1.79 million in Q3 2020.
Fiscal 2020 revenue is expected to be approximately US$7.5 – 8.0 million, compared to US$12.36 million for fiscal 2019.
The Company expects to announce its final audited financial results by the end of October 2020.
Exploration of Strategic Alternatives to Enhance Shareholder Value
The Company has been conducting a process to explore strategic alternatives, including the potential divestiture of certain Company-owned assets. While Kuuhubb’s stated objective is to create sustainable shareholder value through the acquisition of proven, yet under-appreciated assets with long-term growth potential, management has an obligation to its stakeholders to carefully consider and review any options that may enhance shareholder value, including the possibility of realizing that future value now.
There can be no assurance that the strategic alternatives review process will result in any strategic change or outcome. The Company does not know the exact timetable for the conclusion of its review of strategic alternatives, and it does not intend to comment further unless and until an approved course of action has been determined or the Company has otherwise determined that further disclosure is appropriate or required by regulatory/governing bodies.
Tiles & Tales Update
The Company continues to improve its flagship second-generation game, “Tiles & Tales” in the soft launch phase which started in March 2020. The mobile game is the first to merge the popular match-3 and interactive visual novel genres, and the first game developed entirely in Kuuhubb’s Helsinki Game Studio using the Company’s in-house developed match-3 engine. Commercial launch of the new “Tiles & Tales” will depend on reaching satisfactory performance metrics which, if achieved, is expected to take several more months.
Kuuhubb is a publicly listed mobile game development and publishing company, targeting the female audience with bespoke mobile experiences. Our presence, investment and knowledge in esports enables us to bring emerging casual mobile esports to our apps and games portfolio. We create games and apps that help our female audience relax, express, and entertain themselves every day. We explore new lifestyle trends that can be converted into games and apps and offer our community unforgettable gaming and esports experiences. Our vision is to become a top player in the space of women's mobile gaming and casual esports. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on the North American market and a plan to expand into the growing Asian market.
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 revenue, 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, 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 November 8, 2018 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:
Jouni Keränen – CEO
Office: +358 40 590 0919
Office: +1 (416) 479-9547