May 30, 2022
Toronto, Canada – May 17, 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, provides a corporate update on its Finnish subsidiary Kuu Hubb Oy’s debt restructuring ruling and approval, and existing creditor debt resolution.
Commenting on the Restructuring Ruling and Approval, Jouni Keränen, CEO of Kuuhubb Inc. states: "The Approval of the Restructuring Program represents a transformative event for Kuuhubb Inc. and its shareholders. For too long the Company has been constrained by its significant debt load under its Finnish Subsidiary Kuu Hubb Oy, and limited cash resources, which have impacted our ability to grow our existing game portfolio revenue, upgrade and improve the development of our next generation mobile games, and to hire, train and retain the staff needed. Thanks to the support of our creditors and shareholders, we believe we can now achieve the growth potential that we have always envisioned. Moreover, the willingness of the creditors to agree to a debt forgiveness, an 80% discount for their debt, is a significant benefit for the Company and all stakeholders. Our goal now is to get the Company into a much stronger financial position and direct our efforts on executing the growth strategy for our core products – Recolor and Tiles & Tales and continue to improve our business for the long-term benefit of our shareholders."
APPROVAL OF THE RESTRUCTURING PROGRAM
The Helsinki District Court has decided on the final approval of the restructuring program as stipulated by the Finnish Restructuring of Enterprises Act. The purpose of the restructuring program of the Finnish Subsidiary Kuu Hubb Oy is to restore the operations of the business, retain its competitiveness in its sector and to restructure the debts of the Company to the degree necessary in order to achieve the goal of restoring the Company to meet its fiscal responsibilities.
In September 2021, Kuu Hubb Oy 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”) had been initiated by a decision of the District Court of Helsinki on September 7, 2021.
During the past several months Kuu Hubb Oy, together with the administrator, formulated a restructuring program. The general outline and parameters of the program had been provided to major creditors and the program was submitted to the District Court of Helsinki on February 28, 2022.
The debt restructuring program was voted on and approved by the court, with the creditors voting and agreeing to the long-term payment plan.
The Company and its creditors have entered into an agreement to restructuring debt, certified on May 12, 2022. The key indicative terms of the final creditor resolution are as follows:
The Company will continue its operations as usual, and monitor costs. Together with ongoing operations and any potential new opportunities with Recolor, the success of the Company’s Tiles & Tales mobile game that will be commercially released in the second half of calendar year 2022 is important for the profitability of the Company’s business and therefore, for the execution of the restructuring program.
As a result of the Debt Restructuring Program, all legal matters related to Cherry Pick Games have been resolved and settled.