August 19, 2020
Toronto, Canada – August 19, 2020 - Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX- V: KUU), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, announces an award of monetary damages in addition to legal costs and expenses, as a result of the Arbitration (as defined below) action between its wholly-owned subsidiary Kuuhubb Oy and Cherrypick Games S.A. (“Cherrypick”).
As discussed in its interim condensed consolidated financial statements for the three and nine months ended March 31, 2020 (the “Financial Statements”), pursuant to the acquisition (the “Acquisition”) of the My Hospital application from Cherrypick, Kuuhubb Oy acquired certain distribution and intellectual property rights (the “Acquired Rights”). Subsequent to the Acquisition, certain disputes regarding the Acquired Rights arose between Kuuhubb Oy and Cherrypick, and consequently Kuuhubb Oy ceased making payments in connection with the Acquisition.
Pursuant to the current award rendered by the sole arbitrator appointed by the Arbitration Institute of the Finland Chamber of Commerce, Kuuhubb shall pay to Cherrypick €1,600,000 (approximately CAD$2,520,000) composed of the scheduled payments plus interest of 10% per annum thereon, in addition to court costs and fees, including the costs of the arbitrator. Kuuhubb shall also pay to Cherrypick legal costs of €297,984 (approximately CAD$469,000).
Jouni Keranen, the Chief Executive Officer of Kuuhubb stated, “We are very disappointed with the disposition regarding the acquisition of the My Hospital application by Kuuhubb Oy from Cherrypick Games. We will continue to evaluate our legal options in relation to the dispute.”