- Board of Directors unanimously supports the debt restructuring of its Finland-based subsidiary Kuu Hubb Oy, which represents over €7.7 million of aggregate indebtedness
- Kuuhubb Inc.’s operations will continue without interruption; the process is not expected to have any impact on customers, vendors or employees
- The Debt Restructuring proceedings will be under the jurisdiction of the District Court of Helsinki, in Finland, governed by the Finnish Restructuring of Enterprises Act (47/1993, ”REA”)
- Following the debt restructuring process, the Company expects to emerge in a stronger financial situation, positioned for future growth
TORONTO, Sept. 02, 2021 (GLOBE NEWSWIRE) — 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 today that the Board of Directors of Kuuhubb Inc. has unanimously approved the plan to restructure all of the debt within its Finland based subsidiary Kuu Hubb OY (Finnish Business ID: 2645999-5).
In order to undertake the necessary debt restructuring initiatives within Kuu Hubb OY, the Kuuhubb Inc. Board of Directors unanimously approved and applied to undertake Finnish restructuring proceedings under the jurisdiction of the District Court of Helsinki, in Finland. The restructuring application of Kuu Hubb Oy is currently being assessed by the District Court. The restructuring proceedings are governed by the REA.
Jouni Keränen, CEO of Kuuhubb Inc. states, “The Company continues its search to identify a buyer for its Recolor app. However, given that this process has not yet proved successful and given the current debt burden of Kuu Hubb Oy, our Finland based subsidiary, our Board of Directors has determined, after having reviewed various alternatives and after having taken into account the financial position of Kuu Hubb Oy, that the restructuring of Kuu Hubb Oy’s debt obligations is the only reasonable available alternative for Kuu Hubb Oy, and is in the best interest of the Company. In Finland, the goal of the debt restructuring process is to decrease the Finnish company’s debt burden without impacting the Finnish company shareholder’s equity, enabling future investments for revenue growth and a path to profitability. Our goal is to get the Company into a stronger financial position and direct our efforts on executing the growth strategy for our two core products – Recolor and Tiles & Tales, and continue to improve our business for the long-term benefit of our shareholders.”
About Kuuhubb Inc.
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 has a global presence 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, the expected debt restructuring and bankruptcy process of Kuu Hubb Oy, its expected impacts and benefits on the Company and on Kuu Hubb Oy, and the emergence from the debt restructuring process) 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 things: 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; the risk that the debt restructuring process described herein will not be completed as expected by the Company, or at all; the risk that the Company and Kuu Hubb Oy will not be able to emerge from the debt restructuring process with a stronger financial position; the reputational damage that could be incurred by the Company and/or Kuu Hubb Oy because of the debt restructuring process, including the impact on their ability to maintain relationships with key vendors, suppliers, employees and other business partners, and the ability of the Company and Kuu Hubb Oy to secure financing in the future on commercially attractive terms or at all; the potential negative impacts of the debt restructuring process on the Company’s current financing partners; 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