Kuuhubb Announces US$1.3 Million Non-Convertible Debenture Financing

TORONTO, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX- V: KUU), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, is pleased to announce a proposed non-convertible debenture financing (the “Offering”) for gross proceeds of up to US$1,300,000. The Offering will be composed of secured debentures (“Debenture”), and each Debenture will have a face value of US$29,500.

Each Debenture shall mature twenty-four (24) months from the date of closing (the “Maturity Date”) and bear interest at a rate of 12% per annum, which will be calculated and payable quarterly. The payment of the Debentures shall be secured by a security interest granted by the Company in respect of certain intellectual property licences held by a wholly-owned subsidiary of the Company.

It is expected that the subscribers under the Offering will be one lender acting at arm’s to the Company and Joki Capital Ou, a non-arm’s length party to the Company owned wholly by Messrs. Jouni Keränen and Christian Kolster.

Subscribers to the Offering will be entitled to receive a bonus of 50,000 common share (“Share”) purchase warrants (“Warrants”) of the Company per Debenture. Each Warrant shall entitle the holder to purchase one Share (“Warrant Share”) for a period of twenty four months after closing at a price of CAD$0.10 per Warrant Share. In addition if (i) the Debenture is redeemed or retracted in accordance with the terms therein; or (ii) the trading price of the Shares on the TSX Venture Exchange (“TSXV”) closes at a minimum of CAD$0.30 per Share for a period of ten (10) consecutive trading days, the Company may, upon the written consent of the holder of the Warrant, accelerate the expiry date of the Warrants to the date which is (a) thirty (30) days following the date upon which notice of the accelerated expiry date is provided to the holders of the Warrants, or (b) such other date as may be mutually agreed upon between the Company and the holders of the Warrants.

The Debentures, the Warrants, and Warrant Shares, if issued, will be subject to a four-month and one day statutory hold period, in addition to such other restrictions as may apply under applicable securities laws in jurisdictions outside of Canada. The Company intends to use the proceeds from the Offering for business development and general working capital purposes.