Kuuhubb Signs Term Sheet to Acquire Full Global Rights and Revenue to My Hospital Game
February 28, 2018
Toronto, Canada -
Kuuhubb Inc. ("Kuuhubb" or the "Company") (TSX-V: KUU) announces that it has signed a non-binding term sheet to acquire the full global rights and revenue to the My Hospital game.
“We are very satisfied with the growth of My Hospital during the past months. To maximize the overall profitability for Kuuhubb, we are in discussions to expand our cooperation with Cherrypick Games on My Hospital. The proposed deal structure is expected to provide Kuuhubb with cash flow and profitability as well as create long-term value through our expanding product portfolio globally,” commented Jouni Keränen, CEO of Kuuhubb.
Based on the terms of the non-binding term sheet, the current distribution agreement, which ends June 2019, would be changed to a purchase agreement for My Hospital full global rights. The purchase price of 2.6 million Euros would be paid in monthly instalments between May 2019 and June 2021. Additionally, after Kuuhubb has recouped the entire purchase price, Cherrypick Games would be entitled to 25% net profit share. Cherrypick Games would continue the current game development and update efforts until June 2021.
The proposed My Hospital acquisition is subject to the execution of the definitive documentation in respect of such acquisition and receipt of any required TSX Venture Exchange acceptance.