TORONTO, Dec. 05, 2018 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the “Company”) (KUU.V), a technology company focused on acquiring, developing and distributing lifestyle and mobile game applications for the female audience, is pleased to announce that it has closed its previously announced Euro €2,000,000 (approximately CAD$3,000,000) private placement financing (the “Financing”) through the issuance by the Company of an unsecured convertible debenture (the “Debenture”) in the principal amount of Euro €2,000,000. The Debenture matures on November 7, 2021, bears interest at an annual rate of 5.5% (with the interest payable every six months), and is convertible at the option of the holder into common shares of Kuuhubb at a price of CAD$1.10 per share. As well, Kuuhubb has the option to (a) convert the Debenture into common shares of the Company after the two year anniversary of the issuance of the Debenture if the market price of such shares exceeds CAD$1.10 per share, and (b) redeem the Debenture after the two year anniversary of the issuance of the Debenture. The Debenture is subject to a four month hold period and will not be listed for trading on any exchange.
Kuuhubb’s CEO Jouni Keränen stated: “This financing, together with other non-dilutive financing plans being explored, will allow us to significantly accelerate our growth plans in 2019, and expedite the new product development, soft launches and commercialization initiatives underway. I am excited for our shareholders and team, as we have much to look forward to in the coming weeks and months.”
The Company intends to use the net proceeds from the Financing for portfolio growth initiatives and general corporate purposes. Kuuhubb’s Executive Vice President Christian Kolster commented: “The closing of this financing with a CAD$1.10 strike price underlines our long-stated goal of preventing dilution whenever possible.”
Kuuhubb is a company active in the digital space that focuses mainly on lifestyle and mobile game applications for the female audience. Its strategy is to create sustainable shareholder value through acquisitions of proven, yet underappreciated, assets with robust long-term growth potential. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on developing U.S. brand collaborations and Asian partnerships.
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 products and the development and 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 things, risks related to the growth strategy of the Company, the possibility that results from the Company’s growth and development 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 and the other risks disclosed under the heading "Risk Factors" in the Company's annual information form dated November 8, 2018 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