RYU Apparel Inc. announced that it has closed a non-brokered private placement financing.
The financing consisted of 97,165,000 units of the company at a price of $0.05 per unit for gross proceeds of $4.86 million. 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 $0.055 per common share for a period of two years from the closing of the financing. The warrants are 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 of greater than $0.15 per share for a period of 5 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.
No finder’s 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 ongoing operations.
“I am thrilled with the exceptional support we have received from existing and new investors,” said Cesare Fazari, the Chief Executive Officer of RYU. “In the face of the challenges 2020 presented to all businesses 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.
Photo courtesy RYU Apparel
