November 2, 2021
TORONTO, October 28, 2021 -- 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 announced that it has released its audited annual financial results for the financial year ended June 30, 2021. The results have been filed with the Canadian Securities Administrators and are now available on SEDAR.
Audited Annual Financial Results for the Financial Year Ended June 30, 2021
Add back of:
Classification of Recolor Oy out held for sale and discontinued operations
The Company was not able to complete the divestiture of Company-owned assets such as shares of Recolor Oy in the past twelve months after best efforts by the management. In addition, the recent restructure of the Company’s main operating subsidiary also hinders the Company’s ability to continue to pursue the divestiture. Therefore, the associated assets and liabilities and the net income within Recolor Oy, previously presented as held for sale and attributable as discontinued operations in the consolidated financial statements, have been classified back to normal continuing operations.
Additional Financial Details & Announcements (Subsequent to Fiscal Year End):
Subsequent to the fiscal year ended June 30, 2021, the Company received the following additional financing and made the following announcements.
The Company closed a private place on July 19, 2021 with two existing shareholders of the Company. The Company issued €250,000 debentures with 90-day maturity at annual 12% interest and 2,500,000 warrants with C$0.10 exercise price and two-year maturity.
Restructuring of Kuuhubb Oy
In September 2021, Kuu Hubb Oy had applied to undertake Finnish restructuring proceedings under the jurisdiction of the District Court of Helsinki, in Finland. The debt restructuring process of Kuu Hubb Oy in accordance with the Finnish Restructuring of Enterprises Act (25.1.1993/47 “REA”) has been initiated by a decision of the District Court of Helsinki on 7 September 2021. The detailed restructuring plan is still yet to be finalized and approved by the court.
Jouni Keränen, CEO of Kuuhubb Inc., commented, “Fiscal year 2021 was a challenged year for Kuuhubb. Kuuhubb’s Finnish subsidiary Kuu Hubb Oy, lost its arbitration court case in August 2020 which caused fiscal pressure throughout the year and culminated in the restructuring process of Kuu Hubb Oy in September 2021. This process became a necessity to ensure company can continue the development and launch of its story-based Match-3 game engine and flagship game Tiles & Tales. At the same time the planned divestment of Recolor became very difficult due to ongoing FTC investigation even with the resulting settlement in June 2021. Despite the difficulties, I am very proud of all our talented and hardworking people who have continued to operate and improve our products with the utmost dedication in providing the best possible experience for our customers. This belief is visible in the high quality of Recolor and Tiles & Tales and should eventually result in us turning the corner and returning to growth. I am confident that we will get through the restructuring process and emerge as a leaner, stronger company with continued focus on creating high-quality long-lasting digital entertainment properties for the global audience.”
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 2 of this press release. EBITDA does not have any standardized meaning prescribed by IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate EBITDA differently.
Kuuhubb is a publicly listed mobile game development and publishing company, targeting the female audience with bespoke mobile experiences. Our Mission is to become a top player in the female mobile game space. We believe in empowering women by creating games and apps that will have our female audience relax, express and entertain themselves every day. Through our games and partnerships with select developers, we explore new lifestyle trends that can be converted into games and apps which will bring value to our users, employees, and shareholders. Headquartered in Helsinki, Finland, Kuuhubb is targeting global audience with a strong focus on U.S. and Asian markets.
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 and development, 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 thing:, risks related to the growth strategy of the Company; the possibility that results from the Company’s growth 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, including the ability to complete the sale of Recolor OY and the Codecacao Acquisition on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended June 30, 2020 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