March 2, 2022
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 and six months periods ended December 31, 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 and Six Months Ended December 31, 2021:
Three Months Ended December 31, 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 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. The comparative figures have been reclassified to reflect these changes.
Additional Financial Details & Announcements:
Private Placement of Kuuhubb AG
Kuuhubb AG closed a private placement in December 2021 with an existing shareholder of the Company. The Company issued $234,038 (€200,000) debentures with maturity on February 28, 2022 (in negotiation to extend to February 2024) and annual interest rate of 12%. The loan is unsecured and has a mandatory conversion feature where upon conversion the debt holder would become approximately 9% shareholder of Kuuhubb AG upon maturity.
In January and February 2022, as part of the same private placement, the Company received additional €30,000 and €100,000 from existing shareholders for the same terms.
Restructuring of Kuu Hubb 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.
During the last several months, Kuu Hubb Oy has, together with the administrator, formulated a restructuring program. The general outline and parameters of the program have been informed to major creditors and the program was submitted to the District Court of Helsinki on February 28, 2022. The program will be voted on at a later date approved by the court.
Jouni Keränen, CEO of Kuuhubb Inc., commented, “The restructuring process of Kuuhubb Inc’s Finnish subsidiary Kuu Hubb Oy has progressed to the next phase with the proposal having been submitted to the District Court of Helsinki on February 28th 2022. Kuuhubb continues to focus on improving its existing portfolio of high-quality gaming and mobile app assets and is exploring new and innovative ways to upgrade its user gaming experience and further refine its monetization model.”
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.