Kuuhubb Inc. Receives Corporate Restructuring Approval and Creditor Resolution Agreement for Its Finnish Subsidiary Kuu Hubb Oy

HIGHLIGHTS:

• District Court of Helsinki Provides Final Ruling on Debt Restructuring Program: Proceedings under the jurisdiction of the District Court of Helsinki, in Finland, governed by the Finnish Restructuring of Enterprises Act (47/1993, "REA") related to the debt restructuring of Kuu Hubb Oy have been approved and certified.

• Creditors Agree to Restructuring and Payment Terms: Resolution of the debt restructuring of the Finland-based subsidiary Kuu Hubb Oy, which represents EUR 7,619,788.34 of aggregate indebtedness has been approved by creditors.

• Following the Debt Restructuring Process: The Company emerges in a stronger financial position, with an improved balance sheet, free of any legal proceedings and positioned for future growth. Kuuhubb Inc.'s operations will continue to focus on growing its existing game portfolio.

Toronto, Ontario--(Newsfile Corp. - May 17, 2022) - Kuuhubb Inc. (TSXV: KUU) ("Kuuhubb" or the "Company"), a mobile game development and publishing company focused on providing the female audience with creative interactive gaming experiences, provides a corporate update on its Finnish subsidiary Kuu Hubb Oy's debt restructuring ruling and approval, and existing creditor debt resolution.

Commenting on the Restructuring Ruling and Approval, Jouni Keränen, CEO of Kuuhubb Inc. states: "The Approval of the Restructuring Program represents a transformative event for Kuuhubb Inc. and its shareholders. For too long the Company has been constrained by its significant debt load under its Finnish Subsidiary Kuu Hubb Oy, and limited cash resources, which have impacted our ability to grow our existing game portfolio revenue, upgrade and improve the development of our next generation mobile games, and to hire, train and retain the staff needed. Thanks to the support of our creditors and shareholders, we believe we can now achieve the growth potential that we have always envisioned. Moreover, the willingness of the creditors to agree to a debt forgiveness, an 80% discount for their debt, is a significant benefit for the Company and all stakeholders. Our goal now is to get the Company into a much stronger financial position and direct our efforts on executing the growth strategy for our core products - Recolor and Tiles & Tales and continue to improve our business for the long-term benefit of our shareholders."

APPROVAL OF THE RESTRUCTURING PROGRAM

The Helsinki District Court has decided on the final approval of the restructuring program as stipulated by the Finnish Restructuring of Enterprises Act. The purpose of the restructuring program of the Finnish Subsidiary Kuu Hubb Oy is to restore the operations of the business, retain its competitiveness in its sector and to restructure the debts of the Company to the degree necessary in order to achieve the goal of restoring the Company to meet its fiscal responsibilities.

In September 2021, Kuu Hubb Oy applied to undertake Finnish restructuring proceedings under the jurisdiction of the District Court of Helsinki, in Finland. The debt restructuring process of Kuu Hubb Oy in accordance with the Finnish Restructuring of Enterprises Act (25.1.1993/47 "REA") had been initiated by a decision of the District Court of Helsinki on September 7, 2021.

During the past several months Kuu Hubb Oy, together with the administrator, formulated a restructuring program. The general outline and parameters of the program had been provided to major creditors and the program was submitted to the District Court of Helsinki on February 28, 2022.

The debt restructuring program was voted on and approved by the court, with the creditors voting and agreeing to the long-term payment plan.

CREDITOR AGREEMENT

The Company and its creditors have entered into an agreement to restructuring debt, certified on May 12, 2022. The key indicative terms of the final creditor resolution are as follows:

• Creditors of Kuu Hubb OY debt totaling EUR 7,619,788.34 (approximately CAD 10.4 million) would undergo the following restructuring:

• All prior defaults, penalties are waived.

• 80% of existing debt with creditors will be forgiven.

• 20% of existing debt with creditors will be classified as "Debt Under Restructuring."

- Debt Under Restructuring will total EUR 1,523,957.67 (approximately CAD 2.1 million).

- Eight payments will be paid over a period of 84 months (7 years), on September 30^th of each year.

- First payment of EUR 38,098 in 2022, Second payment of EUR 158,745 in 2023, Third payment of EUR 241,293 in 2024, Fourth payment of EUR 241,293 in 2025, Fifth payment of EUR 241,293 in 2026, Sixth payment of EUR 241,293 in 2027, Seventh payment of EUR 241,293 in 2028, and final payment of EUR 120,646 in 2029.

- No interest or overdue interest is paid to unsecured restructuring debt.

- No option to extend payment period.

The Company will continue its operations as usual, and monitor costs. Together with ongoing operations and any potential new opportunities with Recolor, the success of the Company's Tiles & Tales mobile game that will be commercially released in the second half of calendar year 2022 is important for the profitability of the Company's business and therefore, for the execution of the restructuring program.

As a result of the Debt Restructuring Program, all legal matters related to Cherry Pick Games have been resolved and settled.

About Kuuhubb

Kuuhubb is a publicly listed mobile game development and publishing company, targeting the female audience with bespoke mobile experiences. Our Mission is to become a top player in the female mobile game space. We believe in empowering women by creating games and apps that will have our female audience relax, express and entertain themselves every day. Through our games and partnerships with select developers, we explore new lifestyle trends that can be converted into games and apps which will bring value to our users, employees, and shareholders. Headquartered in Helsinki, Finland, Kuuhubb has a global presence with a strong focus on U.S. and Asian markets.

For further information, please contact:
Kuuhubb Inc.
Jouni Keränen - CEO
[email protected]
Office: +358 40 590 0919

Bill Mitoulas
Investor Relations
[email protected]
Office: +1 (416) 479-9547

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 development, 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 thing:, risks related to the growth strategy of the Company; the possibility that results from the Company's growth 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, including the ability to complete the sale of Recolor OY and the Codecacao Acquisition on terms which are economic or at all; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on its business segments, capital market conditions, restrictions on labour and international travel and supply chains; and the other risks disclosed under the heading "Risk Factors" in the Company's management discussion and analysis for the twelve months ended June 30, 2020 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 the 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.

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