Mr. Cesare Fazari reports
RYU APPAREL CLOSES $4.2M MILESTONE PRIVATE PLACEMENT
RYU Apparel Inc. has closed a non-brokered private placement financing. The financing consisted of 97,165,000 units of the company at a price of five cents per unit for gross proceeds of $4,858,250. Each unit consists of one common share and one transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of 5.5 cents per common share for a period of two years from the closing of the financing, subject to an acceleration provision of the company, whereby, in the event the company's common shares have a closing price on the TSX Venture Exchange (or such other exchange on which the shares may be traded at such time) of greater than 15 cents per share for a period of five consecutive trading days at any time after four months and one day from the closing date, the company may accelerate the expiry date of the warrants by giving notice through a news release to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which the news release is disseminated by the company.
No finders' fees were issued in connection with the financing.
The proceeds from the offering will be used to provide working capital for general corporate purposes and to support RYU's continuing operations.
"I am thrilled with the exceptional support we have received from existing and new investors," said Cesare Fazari, chief executive officer of RYU. "In the face of the challenges 2020 presented to all business around the world, this capital infusion shows the confidence shareholders have in our plan of profitable renewal for the RYU brand. We anticipate that the year ahead will be even more exciting and fruitful for RYU as we focus on revenue growth, launching innovative marketing campaigns and delivering outstanding, new products to our customers."
All securities issued in the financing are subject to a statutory hold period expiring March 1, 2021.
Insiders of the company subscribed for a total of 16.52 million units under the financing, which is a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The issuance to the insiders is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b) as the company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the shares issued to the related parties did not exceed 25 per cent of the company's market capitalization.
About RYU Apparel Inc.
Respect Your Universe is an award-winning urban athletic apparel and accessories brand engineered for fitness, performance and lifestyle. Designed without compromise for fit, comfort and durability, RYU exists to facilitate human performance.
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