Kuuhubb Announces Closing of €2,000,000 Convertible Debenture Financing
December 5, 2018
– Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX-V: KUU), a technology company focused on acquiring, developing and distributing lifestyle and mobile game applications for the female audience, is pleased to announce that it has closed its previously announced Euro €2,000,000 (approximately CAD$3,000,000) private placement financing (the “Financing”) through the issuance by the Company of an unsecured convertible debenture (the “Debenture”) in the principal amount of Euro €2,000,000. The Debenture matures on November 7, 2021, bears interest at an annual rate of 5.5% (with the interest payable every six months), and is convertible at the option of the holder into common shares of Kuuhubb at a price of CAD$1.10 per share. As well, Kuuhubb has the option to (a) 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 CAD$1.10 per share, and (b) redeem the Debenture after the two year anniversary of the issuance of the Debenture. The Debenture is subject to a four month hold period and will not be listed for trading on any exchange.
Kuuhubb’s CEO Jouni Keränen stated: “This financing, together with other non-dilutive financing plans being explored, will allow us to significantly accelerate our growth plans in 2019, and expedite the new product development, soft launches and commercialization initiatives underway. I am excited for our shareholders and team, as we have much to look forward to in the coming weeks and months.”
The Company intends to use the net proceeds from the Financing for portfolio growth initiatives and general corporate purposes. Kuuhubb’s Executive Vice President Christian Kolster commented: “The closing of this financing with a CAD$1.10 strike price underlines our long-stated goal of preventing dilution whenever possible.”