November 30, 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 unaudited consolidated financial results for the three-month period ended September 30, 2021. The results have been filed with the Canadian Securities Administrators and are now available on the Company’s issuer profile at www.sedar.com. The Company’s financial year end is June 30.
Financial Results for the Three Months Period Ended September 30, 2021:
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 hindered 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. The comparative figures have been reclassified to reflect these changes.
Additional Financial Details & Announcements (Subsequent to Period End):
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 September 7, 2021.
To date, the detailed restructuring plan is still yet to be finalized and approved by the court.
Jouni Keränen, CEO of Kuuhubb Inc., commented, “The restructuring process of Kuuhubb Inc’s Finnish subsidiary Kuuhubb Oy is progressing on schedule and the company is working with all relevant parties to achieve a favorable outcome, which is expected prior to Kuuhubb Inc’s fiscal 2022 year-end. Our flagship game Tiles & Tales has reached acceptable KPI’s in the user acquisition funnel and user retention, with current key focus on improving monetization. While Tiles & Tales is already commercially launched and available in key territories on both Apple and Android platforms, the company expects substantial marketing investments and revenue growth to occur in H1 2022 calendar year. Persistence and patience to continue fine-tuning a game is critical to commercial success and we will invest the required time and effort to maximize the long-term success and return on investment of all our games, and our flagship game Tiles & Tales in particular.”
EBITDA - Non-IFRS Measure
EBITDA is intended to provide additional information to investors and analysts. The Company calculated EBITDA as set out on page 1 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.