Kuuhubb Reports 2020 Fiscal Year End Audited Annual Financial Results and Provides Corporate Update - Seite 3

-  Non-cash fair value change of loan receivable from Valiance UG of US$405,703

and deduct:
-  Fair value change of derivative liability of US$677,806;
-  Foreign exchange gain of US$4,446

The authorized share capital of the Company consists of an unlimited number of common shares. As at October 26, 2020, the Company had outstanding 55,752,709 common shares and 7,450,000 stock options.

The Company also has two convertible debentures with face value of €2,000,000 each. The debentures can be converted to approximately 6,408,727 common shares upon conversion.

⁽¹⁾ Classification of Recolor Oy as held for sale and discontinued operations

As part of the efforts to meet the Company’s obligations and build growth, the Company announced it is exploring multiple strategic alternatives, including the divestiture of Company-owned assets such as shares of Recolor Oy. This may be completed within twelve months and as such the associated assets and liabilities within Recolor Oy are presented as held for sale and the net income attributable as discontinued operations in the consolidated financial statements. Unless otherwise indicated, the analysis and discussions herein are based on the Company’s continuing operations consist of the Company’s “My Hospital” operation.

Subsequent Events to Fiscal Year End:

Subsequent to the fiscal year ended June 30, 2020, the Company received the following additional financing and made the following announcements.

Closing of Non-Convertible Debenture Financing

On September 30, 2020, the Company announced the closing of a non-convertible debenture financing (the “Offering”) for aggregate gross proceeds of US$1,300,000 on a non-brokered basis. The Offering is composed of secured debentures (“Debenture”), each of which has a face value of US$29,500, a Maturity Date twenty-four months from the date of closing, and bears interest at a rate of 12% per annum.

The Company intends to use the proceeds from the Offering for business development and general working capital purposes. Full details of the Offering are available in the Company’s news release dated September 23, 2020 and filed under Kuuhubb’s profile at www.sedar.com.

Settlement Agreement with Cherrypick Games

On October 7, 2020, the Company announced that further to its news release issued on August 19, 2020, it had agreed to settlement terms (the “Agreement”) with Cherrypick Games S.A. (“Cherrypick”). Terms of the Agreement provide for a lower total payment amount from Kuuhubb to Cherrypick and the complete transfer of the “My Hospital” game from Cherrypick to Kuuhubb. The Agreement sets out a payment schedule that is to be fulfilled by May 31, 2021. Kuuhubb is, with the support of Cherrypick, in the process of transferring the game development to Kuuhubb’s development team in Helsinki and is planned to have full control of the source code by November 1^s 2020.