TORONTO, ONTARIO–(Marketwired – June 23, 2017) –
NOT FOR DISSEMINATION IN THE UNITED STATES
Kuuhubb Inc. (“Kuuhubb” or the “Company”) (TSX VENTURE:KUU) announces that it has secured an exclusive option (the “Option”) to acquire 100% of Finnish lifestyle application company Sumoing Oy, creator of the world’s leading digital coloring book application called Recolor. Total consideration payable for the acquisition of Sumoing Oy is 9,000,000 Euros or approximately USD$10,100,000.
Sumoing Studios is a Helsinki-based game development studio that specializes in lifestyle genre apps targeted to the female audience. Sumoing’s applications have more than 40 million all-time downloads.
Recolor is the most polished, high-quality digital coloring book on mobile, including 1,500+ beautiful art illustrations and unique 3D content. It’s easy, smooth and ideal for on-the-go-relaxation. Simple, intuitive user interface combined with beautiful color palettes and illustrations give the user stress relieving coloring. Recolor uniquely provides style themes to finalize the user’s creation before sharing with others, including pencil, marker, acryl, watercolor and more, giving the user’s art a beautiful, authentic finish.
Recolor is the number one digital coloring book application on mobile. It has more than 20 million all-time downloads, 69 million monthly sessions and over 4 million monthly active users. Recolor is transforming from a pure coloring app to an active creative community.
The Option was acquired by Kuuhubb for nominal consideration from a company controlled by two officers and directors of Kuuhubb, Jouni Keränen and Christian Kolster. Upon satisfactory completion of Kuuhubb’s due diligence review of Sumoing Oy, Kuuhubb intends to engage financial agencies to raise financing to fund the Company’s purchase of Sumoing Oy. In addition to securing financing, the proposed acquisition is also subject to receipt of all required approvals, including the approval of the TSX Venture Exchange. Sumoing Oy is an arm’s length party to Kuuhubb.
Further details to be released in due course.
This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
About Kuuhubb
Kuuhubb is a company active in the digital space that focuses mainly on Lifestyle and Mobile Video Game Applications. 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, the Company has a global presence with a strong focus on US 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 regarding revenue of Sumoing Oy and the Company’s proposed acquisition of Sumoing Oy and related proposed financing) 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, failure to complete the proposed acquisition by the Company of Sumoing Oy, the need to satisfy regulatory and legal requirements and other conditions with respect to the proposed acquisition, the fact that the Company needs to raise financing to carry out the proposed acquisition, and future revenue of Sumoing Oy being less than expected. 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.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.
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.
