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Kuuhubb Is Well-Positioned For A Breakout Year in 2020; Female Gamers Market Hits One-Billion Users

Newsfile Corp.

New York, New York--(Newsfile Corp. - March 12, 2020) - Successful companies have at least one thing in common - they target substantial market opportunities that can deliver long-term rewards. Kuuhubb (TSXV: KUU) (OTC Pink: BCDMF), a lifestyle games and app company, embraces that philosophy. And, its path toward success is influenced by a primary motivator - to develop, create, and publish a bespoke mobile lifestyle for women.

Since its beginnings in 2014, Kuuhubb has been on a mission to create inviting content and visually stunning gaming and app graphics that can convert lifestyle trends into unforgettable gaming experiences. But, there is something unique about the Kuuhubb business focus. Instead of developing content for a broad range of demographics, Kuuhubb is instead creating content designed to attract the attention of the estimated one billion female gamers worldwide. And, for Kuuhubb, having the "know-how" to benefit from this multi-billion dollar market opportunity puts them on the path for long-term, sustainable growth on a global stage.

The proof of that is demonstrated by its growing library of games and apps, with Recolor, one of its most popular female-focused coloring apps, already earning a Top 10 position on the U.S. App Store charts. And, there is far more to like about both the company and its unique, bespoke style gaming content.



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Focused On A Female eGaming Market

Although the billion-person female gaming market is a global estimation, a more targeted survey shows that women now make up roughly 46% of the mobile gaming and app market. That makes them a substantial contributor to the expected $140 billion in total video game sales expected by 2021. And, by creating innovative and inviting content, Kuuhubb may have found the formula that can allow them to earn a sizable share of that enormous dollar market over the next few years.

The Kuuhubb user base won't get titles like Call of Duty downloaded to their device...but they can get treated to enthusiastically designed images and extremely entertaining games like My Hospital, Dancing Diaries, and Recolor By Numbers, which stand out as examples of the company's expertise in developing creative, vibrant content that combines artistic creation with fun and challenging themes. In fact, its current 70 people international team of developers, writers, and back-office staff are each contributing toward a common goal of making Kuuhubb a leading provider of egaming content to the female demographic. To get there, Kuuhubb is taking advantage of accretive acquisition opportunities combined with responsible capital management.

And, its history shows that prudent capital and treasury share management can help to build a formidable product arsenal.

2017 Set's Up Kuuhubb For Strong Growth

Although Kuuhubb made its start in Finland in 2014 as an online gaming consultant company, the growth spurt came in 2017 after the company made a series of well-placed decisions and deals.

First, Kuuhubb secured a public listing in Canada, where it currently trades on the TSXV market. After an equity raise of CA$6 million, the company then searched for assets that would be accretive to the growth strategy. The first move, which turned out to be an excellent decision, was the acquisition of Recolor, a coloring app that is now a Top 10 app on the charts. Also, in 2017, the company raised an additional CA$17 million in capital to broaden its operations and gaming pipeline.

This allowed Kuuhubb to extend its reach into the Indian market, where it established a strategic partnership with India's largest talent management group. The growth continued into additional markets in 2017 when the company created its Japan operations division. These new geographic locations extended the competitive landscape for Kuuhubb that helped seal the deal on a second asset purchase of My Hospital, another highly-rated game that encourages users to build, farm, and heal. Kuuhubb owns the global rights for the app. The difference that the Kuuhubb platform brings to its vast user base is that they inherently inspire its users to do three things - relax, express, and entertain.

And, it's mission to become a top player in the space of women's mobile gaming and casual esports continued into 2018.

Brand Deals In 2018 Set Up Kuuhubb For More Growth

While 2017 set the table, 2018 brought significant growth opportunities through the extension of co-marketing deals. Currently, Kuuhubb is working with major global brands, including Kellogg's, Lionsgate, Ben & Jerry's, and Mattel, to bring to market exciting games that combine partner's products with innovative gaming features. Examples of recent campaigns and partnerships included coloring apps with Barbie, Orange & Black, Ben & Jerry's, and My Little Pony.

The company also made additional strategic moves in that year by acquiring the tech and development assets from Valiance Group that fortified its development resources. They also acquired the global rights to Dancing Diaries, a Match-3 story game that combines popular Match-3 core gameplay with a dancing meta-game. But, to truly appreciate how Kuuhubb differentiates itself from the status quo, readers of this article should click on this link to see how art, imagination, and technology can come together to make high-quality, visually- appealing, games and apps.

While the 2018 additions to its gaming library and tech assets were significant, Kuuhubb also closed on another financing deal to facilitate additional growth. This time, they attracted a growth financing deal for €2 million. Also showing that they can attract mainstream funding, in 2019, Kuuhubb closed on a €1 million long-term low-interest government loan instrument.

Recent Earnings Show Trend Higher

During the first week of March, the company put out its fiscal Q2 results that highlighted revenues that beat analyst estimates by $0.07 million. Three and six-month revenue numbers came in at $1.97 million and $4.26 million, respectively. Revenues came primarily through its top two apps, Recolor, and My Hospital. The company also beefed up its balance sheet with additional funding after the quarter ending.

In January, Kuuhubb received $197,867 from Valiance UG as partial repayments for the outstanding loan receivable balances on December 31, 2019. Then, in February, Kuuhubb closed on a non-brokered private placement offering of an unsecured convertible debenture totaling €2 million in principal that matures in 36 months and bears an interest rate of 10%. The debenture can be converted, at the option of the holder, into common shares of Kuuhubb at a conversion price fixed at CAD$0.80 per share. Thus, the dilutive effect, if exercised, would amount to roughly 2,500,000 shares, which still leaves the capital structure with less than 60 million shares outstanding and plenty of room for additional dilutive, but accretive growth opportunities.

On the acquisition front, February of 2020 also saw Recolor Oy, a wholly-owned subsidiary of Kuuhubb, enter into a sale and purchase agreement with Codecacao d.o.o. Under that agreement, Kuuhubb will acquire 100% of the issued and outstanding shares of Codecacao in consideration of one-million common shares from Kuuhubb payable over two years. The deal brings Kuuhubb a team of apps and game lovers that develop globally recognized products.

The release also highlighted the coming soft launch of the company's flagship, second-generation Match-3 game, Tiles & Tales, which is expected to happen in March of this year. A broad perspective of the report demonstrates that Kuuhubb is continuing to build a leading lifestyle game portfolio and is advancing its position as an industry innovator, targeting the female demographic. At the same time, the company is continuing to diversify its portfolio into the popular Match-3 or "tile-matching," gaming space, with the development of two new titles; Dance Talent and Tiles & Tales, expected to launch during the first half of 2020.

Kuuhubb In 2020, Targeting A Huge Female Gaming Market

At Kuuhubb, 2020 is setting up to be a potential breakout year for the company. Bringing additional games to market, acquiring new assets, and adding liquidity to the balance sheet can each serve to add momentum to the company, and its stock, as the year unfolds.

Few will argue against the company being well-positioned in a significant market, or that their commitment to driving products and revenues from female gamers in an under-served product development market can deliver substantial long-term rewards. Moreover, the opportunities are magnified by the emergence of the gaming industry's latest phenomenon, esports.

Differentiating themselves from a crowded, competitive landscape and filling a void in a multi-billion dollar market can undoubtedly provide a competitive advantage to Kuuhubb. Moreover, as new opportunities continue to develop in the casual, mobile esports game niche, Kuuhubb can seize upon new market opportunities that combine immensely popular casual and multiplayer elimination genres to create a unique portfolio of games for the female market.

Notably, three things play in favor of long-term growth for Kuuhubb. First, the company is targeting a market that is increasing in size, despite it already being an estimated one-billion person opportunity. Second, the company is bringing to market innovative, challenging, and visually appealing games that cater to the demands of the female gaming market. And, third, the company is well-managed and has a team of business and design professionals that have proven their ability to build multi-generational game concepts.

Combining it all, Kuuhubb may be in the best operating position in its history to deliver breakout results that can build shareholder value. And, if that is indeed the case for 2020, keeping an interest beyond its gaming platform may be a wise choice.

Media Contact:

Ken Ellis
ken@soulstringmedia.com

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